Video Replication and packaging equipment for the manufacturing of consumer grade DVD and BluRay video products has been purchased and launched into operational status this week by Hannover House, Inc. (OTC: HHSE), a leading U.S.A. producer and distributor of independent films and videos. The addition of in-house video replication and packaging facilities will improve order turn-around time, save on freight and improve profit margins, the company announced.
"Our video catalog has grown significantly in the past two years," said Fred Shefte, President of Hannover House. "With the addition of the Medallion Releasing supplier studios, we are now handling sales for over four-hundred video titles, with orders ranging from small units for internet sellers, to truck-load quantities for mass merchant accounts. We needed to implement a system to better handle the fulfillment of orders, especially on the older catalog titles which often only need a few hundred units at a time. Our major DVD and BluRay manufacturing activities will continue to be performed at larger, specialty facilities, primarily in the Los Angeles market. But for the smaller quantity runs for catalog or replenishment orders, our new in-house system is the ideal solution," he continued.
Hannover House has worked with a variety of DVD and BluRay replication plants over the past twelve years, and has replicated and sold more than 10-million total DVD units into the North American home video market. On many occasions, Hannover House has endured fulfillment delays on small catalog orders, as the larger video manufacturing plants tend to give priority attention to the higher-volume, new release titles. In order to obtain priority attention for smaller orders, some facilities require premium fees or rush charges, which erode the profit margins for distributors such as Hannover House. Having the capability of quickly filling replenishment and catalog orders at reasonable manufacturing costs will improve Hannover’s fill rate with key customers as well as the company's bottom line.
At the request of shareholders, the company plans to produce and publish onto the internet a short video highlighting the company's in-house replication capabilities. The Hannover House video replication services will not be accepting business from the public or outside suppliers, as the manufacturing capacity will be utilized full time for the fulfillment of existing HHSE retail customer orders.
SAFE HARBOR STATEMENT
This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.