HOLLYWOOD, Feb. 4, 2005 (PRIMEZONE) -- Film and Music Entertainment, Inc. (Pink Sheets:FLME), a publicly traded Hollywood-based independent film producer and distributor, announced today that it had successfully concluded negotiations with a major stockholder, Satish Patel, for the assignment to the Company of 15.75 million of his shares of the Company's Common Stock. In return, the Company agreed to relinquish its ownership of a hypothecated money interest in an LLC which it had acquired in the acquisition of East Mojave Corporation in May, 2003.
The 15.75 million shares will be cancelled, thus reducing the total outstanding shares by 11.173% from the current 140.97 million to 125.22 million.
Mr. Patel was formerly a major stockholder and director of the Company and no longer has any official duties or relationship with the Company.
Film and Music Entertainment is an independent entertainment production and distribution company, which emphasizes high quality, moderate cost, theatrical feature films and television projects.
Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate", "believe", "estimate", "expect", and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services inside or outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, longer payment cycles, and fluctuations in currency exchange rates, any of which could adversely affect the Company's operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future operations and consequently, on the Company's business, results of operations, and financial condition.