WILMINGTON, Del., July 24, 2006 (PRIMEZONE) -- Universal Capital Management, Inc. (OTCBB:UCMT), a business development company which provides emerging growth companies with management and strategic resources for successful growth, announced today that it is declaring a dividend payable in shares of common stock of one of its portfolio companies, Theater Xtreme Entertainment Group, Inc.
The dividend will consist of 0.055 Theater Xtreme shares for each share of Universal common stock owned (or approximately 300,000 Theater Xtreme shares in the aggregate). The number of Theater Xtreme shares distributed to each Universal stockholder will be rounded to the closest whole number of shares of Theater Xtreme with the effect that no fractional shares will be distributed. The Theater Xtreme common stock trades under the symbol TXEG.OB where the last sale price on July 20, 2006 was $2.20 per share.
Theater Xtreme designs, sells, and installs affordable, large-format, front projection home cinemas. Its home cinema packages feature OneView, a media controller that combines on-screen movies, music, photos, games, and Internet access with the touch of a button. The company focuses on middle-income consumers in the home entertainment marketplace, emphasizing value and performance across its line of home cinema audio, video, furnishings, and accessories.
Theater Xtreme currently operates four (4) company-owned stores and has five (5) operating franchise stores with approximately fourteen (14) additional franchise stores in various degrees of completion. Additional information about Theater Xtreme is available at its web site at www.theaterxtreme.com and through its filings with the Securities and Exchange Commission which can be found at www.sec.gov.
The dividend which Universal is announcing today is payable to Universal stockholders of record at the close of business on July 31, 2006. Universal expects to distribute the Theater Xtreme shares on or about August 11, 2006.
"We are delighted to declare this dividend for our high growth technology/entertainment portfolio company for our stockholders," said Michael D. Queen, President and CEO of Universal. "This distribution represents an initial step toward achievement of our investment objective of obtaining capital appreciation and returning value to our stockholders. Moreover, we believe the distribution will also assist Theater Xtreme in accessing the capital markets for its growth needs."
Additional information about Universal Capital Management, Inc. and its portfolio companies is available through the Company's periodic and other reports filed with the Securities and Exchange Commission. You may review these filings at www.sec.gov.
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