HHSE Hannover House Inc (PK)

Sales revenues during calendar year 2012 for independent studio Hannover House (OTC Markets: HHSE) will reflect the company's ongoing commitment to the home video market, as well as new activities in presales and licensing to international buyers, said Eric Parkinson, C.E.O.  For 2012, the company has set a revenue goal of 11.7-million, with a projected pre-tax operating margin of about 2.1-million.  Titles contributing the most towards revenues include the August theatrical release of "Toys in the Attic," (starring Academy Award winner Forest Whitaker) and international presales for the fall 2012 production of "Mother Goose" (starring Academy Award winner Shirley MacLaine).

                The revenue projections were released today in compliance with public company guidelines requiring access to information that might otherwise be considered preferential and non-public.  Parkinson is meeting with corporate financing parties in Los Angeles this week, and will be discussing the Hannover House release slate and forecasts.

                International pre-sales for "Mother Goose" and three other titles represented worldwide by Hannover House are projected to be the largest revenue contributors for the company during 2012.  Foreign presales and licenses are expected to generate about 43% of total revenues, even after dividing the realization of revenues equally between contract date and delivery.  Home Video sales are expected to generate about 36% of total 2012 revenues, and theatrical sales are forecasted at about 18% for the year.  Television licenses and book sales are expected to generate together less than 3% of total revenues.  Not included in these forecasts are sales for merchandising items supporting the release of "Toys in the Attic," and sales for the upcoming launch of the VODwiz.com internet streaming portal.  Both items have been excluded from forecasts due to the lack of sales history at Hannover House.  Home  video sales for "Toys in the Attic" are expected to be recognized in January, 2013, rather than during calendar year 2012, based on the January street date, and not the date of manufacture and shipment (which is projected for mid-December) .

                Revenues for 2013 are expected to grow significantly over 2012, based on modest projections for "Mother Goose," and conservative forecasts for 20 additional titles, including film output agreements with Origin Film Partners and Allegheny Image Factory.

                Hannover House has been operating since 1993, and has posted nine consecutive quarters of profitability since becoming publicly traded on the OTC Markets.  The company's primary offices are in N.W. Arkansas, but will expand this summer to include an ofice presence in Los Angeles to facilitate relationships with the production community, and corporate financing sources.

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.  The sales forecasts prepared by management represent the company's reasonable expectations for performance by titles and media, but in no way constitute a representation, warranty or guarantee that these specific sales and revenue achievements will be achieved.

CONTACT: Eric Parkinson, Hannover House, 818-481-5277 / HannoverHouse@aol.com