June 23, 2004 07:01am
Private Gets 10% Down Payment
Source: Private Media Group, Inc.
by: Company Press Release
(BARCELONA, SPAIN) -- Private Media Group Inc. a worldwide leader in premium-quality adult entertainment products, services and Internet content, today announced the signature of an Agreement to sell an additional part of its real estate property in Barcelona.
Under the Agreement, Private is selling the first floor of its new office building. The consideration under the Agreement is 2.8 million euro with a 10% down payment, which was received upon signature. The balance of the consideration will be received upon delivery of the property, which is expected to take place in July this year. Through this sale, the company has increased the space sold to 37% of the sellable floor space for a total of 4.6 million euro. Use of the proceeds includes investment in the Company's content library and repayments on costly financing not related to the property.
Berth Milton, President and CEO of Private Media Group, Inc. said, "Following the Company's re-evaluation of its need for additional office space and the subsequent decision to sell all, or a substantial part, of our Barcelona property, taking advantage of the buoyant real estate market in the region, we are happy to see the market continuing to show interest in quality locations through this second sale."
Mr. Milton also commented, "Just as with the sale of the ground floor, we expect this transaction to provide value to both the Company and its shareholders since it again demonstrates our ability to obtain additional funds from non-operating activities and thereby removing shareholders' concerns about cash-flow during the past two years' and meeting our future cash-flow needs for the on-going strategic expansion of our business".
About Private Media Group with its 40 year track record, Private is a leading global adult entertainment company that distributes its content over a wide range of media platforms, including narrow and broadband Internet, DVD and video, magazines, broadcasting and wireless technologies. It owns the worldwide rights to the largest archive of high quality adult content in the world, which it physically distributes in over 40 countries.
Disclaimer This release contains, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgments of those issues. However, because those statements are forward-looking and apply to future events, they are subject to such risks and uncertainties, which could lead to results materially different than anticipated by the Company.
For further information please contact:
Alejandra Moore Mayorga
Tel +34 91 531 23 88