PRVT » Topics » MAGAZINE PUBLICATIONS

These excerpts taken from the PRVT 10-K filed Apr 15, 2009.

Magazine Publications

We are the publisher of Private, an international X-rated magazine. Private was founded in 1965, and was the first full color, hardcore sex publication in the world. Today, we produce two X-rated magazines which are released bi-monthly: Private, and Private Sex. We distribute these magazines through newsstands and other retail outlets.

Magazine Publications

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">We are the publisher of Private, an international X-rated magazine. Private was founded in 1965, and was the first full color, hardcore sex
publication in the world. Today, we produce two X-rated magazines which are released bi-monthly: Private, and Private Sex. We distribute these magazines through newsstands and other retail outlets.

STYLE="margin-top:18px;margin-bottom:0px; text-indent:4%">History

The parent company, Private
Media Group, Inc., was originally incorporated in 1980 as a Utah corporation under the name Glacier Investment Company, Inc. for the purpose of acquiring or merging with an established company. In 1991, we changed our domicile to the State of
Nevada. The parent company had no material business activity prior to its acquisition of Milcap Media Limited and Cine Craft Limited in June 1998.

SIZE="2">On December 19, 1997 Private Media Group, Inc. entered into acquisition agreements with Milcap Media Limited and Cine Craft Limited to acquire all of their outstanding capital stock in exchange for 22,500,000 shares of Common Stock,
7,000,000 shares of the $4.00 Series A Preferred Stock, and 2,625,000 common stock purchase warrants. Private Media Group, Inc. completed these acquisitions on June 12, 1998. In connection with these acquisitions, in December 1997 the parent
company changed its corporate name to Private Media Group, Inc. and declared a one for five reverse split of its Common Stock.

On
January 28, 2000, we acquired all of the outstanding shares of Extasy Video B.V. for total consideration of Euro 3.2 million. The consideration consisted of 208,464 shares of common stock and warrants to purchase 208,464 shares of common stock.
The warrants were exercisable during the period January 28, 2001 to January 28, 2004 at an exercise price of $9.63.

In May 2000,
we authorized a three-for-one stock dividend on our common stock, which was distributed to holders of record of common stock on May 30, 2000.

SIZE="2">As of January 1, 2001, we acquired Coldfair Holdings Ltd., a company incorporated and organized under the laws of the Republic of Cyprus, for a total consideration of Euro 1.5 million payable in 248,889 shares of common stock.
Coldfair Holdings is our Internet company which is engaged in online marketing and sale of adult entertainment products and services.

SIZE="2">Effective April 1, 2001, we acquired the inventory and certain contracts of our U.S. distributor, Private USA, in exchange for Euro 1.0 million and the assumption of Private USA’s obligations under some contracts.


On April 8, 2001, Peach Entertainment Distribution AB (Sweden), a subsidiary of Private Media Group, Inc., sold its interest in Private Circle,
Inc., a company engaged in the design, production and marketing of trendy casual apparel, for an adjusted consideration of Euro 2.9 million as of May 2001.

FACE="Times New Roman" SIZE="2">On December 31, 2002, we acquired all of the outstanding shares of Barbuda B.V., a company owning a building, for total consideration of Euro 10.0 million. The consideration consisted of cash and a note payable
in the amount of Euro 6.6 million. The purpose of this transaction was to acquire this property as its European headquarters. Since the acquisition, the Company has been reevaluating its need for additional space and as of February 2005, the Company
no longer owns this property.

On May 30, 2003 we acquired certain assets, including governmental film board approvals and
distribution rights from its former Canadian distributor, Software Entertainment Ltd. In exchange for Euro 0.7 million.

On
November 26, 2003 we entered into an Asset Purchase Agreement to acquire certain intangible assets from International Film Production and Distribution Limited, including certain rights and distribution and licensing agreements. The transaction
closed on November 28, 2003. The consideration for the transaction was Euro 2.5 million.

On January 20, 2009 we expanded our
Internet operations through the acquisition of Game Link LLC and its affiliate, companies engaged in digital distribution of adult content over the Internet and eCommerce development. The consideration for the transaction consisted of 8,534,309
shares of common stock, plus up to an additional 4,595,397 shares of common stock if the combined EBITDA of the digital media operations of Private (including Game Link) meet specified targets in 2009, 2010 and 2011.

STYLE="margin-top:0px;margin-bottom:0px"> 


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MAGAZINE PUBLICATIONS

Our publishing operations include the publication of the adult magazines identified in the table below, special editions consisting of previously published material and occasional newsstand specials, calendars and paperback books. All of these magazines, together with local editions, are printed under various trade names and are distributed in over 40 countries. Our magazines feature pictures of men and women engaged in erotic and sexually explicit situations. During 2008 we distributed approximately 50,000 copies of our print publications per month at an average retail price of approximately (Euro) 11.50. Our current publications are Private, and Private Sex .

 

MAGAZINE LIBRARY    As of December 31,
     2008    2007

Title

   Nº of Issues    Nº of Issues

Private

   210    204

Pirate

   111    106

Triple-X

   85    80

Private Sex

   75    70

Private Man

   4    4

Mansize

   4    4

Special Editions

   30    30

Best of Private (Book)

   15    15

Special Editions (Book)

   1    1
         

Total

   535    514
         

 

     Quantities of Magazines
Produced

(Printed, not sold)

Title

   2008    2007

Private

   211,931    223,200

Pirate

   93,913    147,240

Triple-X

   72,948    120,790

Private Sex

   114,467    131,288

Special Editions

   —      —  
         

Total

   493,259    622,518
         

Our publications offer a variety of features and have gained a loyal customer base. We believe we have earned a reputation for excellence by providing a high standard of quality to the adult entertainment industry, while we maintain circulation leadership as the leading hardcore magazine publisher. All of our publications have long been known for their graphic excellence and features, and publish the work of top artists and photographers in the field. They are also renowned for their pictorials of beautiful people. Our magazines are the best selling in the industry while being among the highest priced.

 

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All of our publications are printed by independent third parties. We have a longstanding relationship with several printers in Spain We believe that generally there is an adequate supply of printing services available to us at competitive prices, should the need for an alternative printer arise. All of our content acquisition and printing activities are coordinated through our operating facility maintained by our wholly owned subsidiary, Milcap Media Group.

These excerpts taken from the PRVT 10-K filed Mar 17, 2008.

Magazine Publications

We are the publisher of Private, an international X-rated magazine. Private was founded in 1965, and was the first full
color, hardcore sex publication in the world. Today, we produce four X-rated magazines which are released bi-monthly: Private, Pirate, Triple X and Private Sex. We distribute these magazines through newsstands and other retail
outlets.

 


- 6 -








MAGAZINE PUBLICATIONS

Our publishing operations include the publication of the adult magazines identified in the table below, special editions consisting of previously published material and occasional newsstand specials, calendars and paperback books. All of these magazines, together with local editions, are printed under various trade names and are distributed in over 40 countries. Our magazines feature pictures of men and women engaged in erotic and sexually explicit situations. We distribute approximately 50,000 copies of our print publications per month at an average retail price of approximately (Euro) 11.50. Our current publications are Private, Pirate, Private Sex and Triple X.

 

MAGAZINE LIBRARY    As of December 31,
     2007    2006

Title

   Nº of Issues    Nº of Issues

Private

   204    198

Pirate

   106    100

Triple-X

   80    74

Private Sex

   70    64

Private Man

   4    4

Mansize

   4    4

Special Editions

   30    30

Best of Private (Book)

   15    15

Special Editions (Book)

   1    1
         

Total

   514    490
         

 

     Quantities of Magazines
Produced
(Printed, not sold)

Title

   2007    2006

Private

   223,200    334,255

Pirate

   147,240    223,615

Triple-X

   120,790    209,250

Private Sex

   131,288    154,806

Special Editions

   —      159,095
         

Total

   622,518    1,081,02
         

Our publications offer a variety of features and have gained a loyal customer base. We believe we have earned a reputation for excellence by providing a high standard of quality to the adult entertainment industry, while we maintain circulation leadership as the leading hardcore magazine publisher. All of our publications have long been known for their graphic excellence and features, and publish the work of top artists and photographers in the field. They are also renowned for their pictorials of beautiful people. Our magazines are the best selling in the industry while being among the highest priced.

 

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All of our publications are printed by independent third parties. We have a longstanding relationship with several printers in Spain We believe that generally there is an adequate supply of printing services available to us at competitive prices, should the need for an alternative printer arise. All of our production and printing activities are coordinated through our operating facility maintained by our wholly owned subsidiary, Milcap Media Group.

This excerpt taken from the PRVT 10-K filed Apr 2, 2007.

MAGAZINE PUBLICATIONS

Our publishing operations include the publication of the adult magazines identified in the table below, special editions consisting of previously published material and occasional newsstand specials, calendars and paperback books. All of these magazines, together with local editions, are printed under various trade names and are distributed in over 40 countries. We publish several customized editions of our four principal magazines. Each edition contains the same editorial material but provides locally targeted content reflecting local governmental regulation regarding explicit adult publications. Most of our magazines feature pictures of men and women engaged in erotic and sexually explicit situations. We distribute approximately 125,000 copies of our print publications per month at an average retail price of approximately (Euro) 11.50. Our most popular publications are Private, Pirate, Private Sex and Triple X.

 

MAGAZINE LIBRARY

   As of December 31,
     2006    2005

Title

   Nº of Issues    Nº of Issues

Private

   198    192

Pirate

   100    94

Triple-X

   74    68

Private Sex

   64    59

Private Man

   4    4

Mansize

   4    4

Special Editions

   30    25

Best of Private (Book)

   15    15

Special Editions (Book)

   1    1
         

Total

   490    462
         

5 Point Topic Ltd's (UK) World Broadband Statistics Q4/05 of March 2006.
6 Forecasted by Ovum-RHK, Inc. (USA)

 

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Quantities of Magazines

Produced

(Printed, not sold)

Title

   2006    2005

Private

   334,255    447,014

Pirate

   223,615    307,402

Triple-X

   209,250    260,663

Private Sex

   154,806    229,860

Special Editions

   159,095    311,356
         

Total

   1,081,021    1,556,295
         

Our publications offer a variety of features and have gained a loyal customer base. We believe we have earned a reputation for excellence by providing a high standard of quality to the adult entertainment industry, while we maintain circulation leadership as the leading hardcore magazine publisher. All of our publications have long been known for their graphic excellence and features, and publish the work of top artists and photographers in the field. They are also renowned for their pictorials of beautiful people. Our magazines are the best selling in the industry while being among the highest priced.

All of our publications are printed by independent third parties. We have a longstanding relationship with several printers in Spain We believe that generally there is an adequate supply of printing services available to us at competitive prices, should the need for an alternative printer arise. All of our production and printing activities are coordinated through our operating facility maintained by our wholly owned subsidiary, Milcap Media Group.

This excerpt taken from the PRVT 10-K filed Mar 31, 2006.

MAGAZINE PUBLICATIONS

Our publishing operations include the publication of the adult magazines identified in the table below, special editions consisting of previously published material and occasional newsstand specials, calendars and paperback books. All of these magazines, together with local editions, are printed under various trade names and are distributed in over 40 countries. We publish several customized editions of our four principal magazines. Each edition contains the same editorial material but provides locally targeted content reflecting local governmental regulation regarding explicit adult publications. Most of our magazines feature pictures of men and women engaged in erotic and sexually explicit situations. We distribute approximately 200,000 copies of our print publications per month at an average retail price of approximately (Euro) 11.50. Our most popular publications are Private, Pirate, Private Sex and Triple X.

This excerpt taken from the PRVT 10-K filed Mar 31, 2005.

MAGAZINE PUBLICATIONS

 

Our publishing operations include the publication of the adult magazines identified in the table below, special editions consisting of previously published material and occasional newsstand specials, calendars and paperback books. All of these magazines, together with local editions, are printed under various trade names and are distributed in over 40 countries. We publish several customized editions of our four principal magazines. Each edition contains the same editorial material but provides locally targeted content reflecting local governmental regulation regarding explicit adult publications. Most of our magazines feature pictures of men and women engaged in erotic and sexually explicit situations. We distribute approximately 200,000 copies of our print publications per month at an average retail price of approximately (Euro) 11.50. Our most popular publications are Private, Pirate, Private Sex and Triple X.

 

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