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Pangea Pictures Corporation & Direct Response Media Announce Status of Share Exchange


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© Business Wire 2008
2008-04-02 23:47:54 -

- Pangea Pictures Corporation, a technology and film production company based in Los Angeles, and Direct Response Media, Inc. (Pink Sheets:DRMO), based in Hilton Head, SC, jointly announced today the status of a share-for-share exchange between the companies.

The transaction is expected to be completed by April 15, 2008. In conjunction with the transaction, Direct Response Media undertook a

1-for-3 reverse split which was effective in the marketplace on March 31, 2008. Direct Response will issue 28,236,387 shares of its common stock to acquire all of the shares of Pangea, a Delaware corporation that will remain a wholly owned subsidiary of Direct Response.

Pangea Pictures Corporation is an integrated film production and advanced Visual Effects technology company. In previous private transactions, Pangea acquired Big Red Pixel, Inc. and Amber Lantern Images. Big Red Pixel's credits include VFX producer and Supervisor work on: "Run," "Collateral," "Just Like Heaven" and "The League of Extraordinary Gentlemen." Amber Lantern Images credits include VFX Supervisor, 2nd Unit Direction on: "The Pacific," "Die Hard with a Vengeance," "The Last Action Hero," "The Thomas Crown Affair" and "Star Trek." Additionally, Principals of Pangea have completed major visual effects projects for clients such as DreamWorks SKG, Fox, MGM, and Sony, among others.

Pangea, in conjunction with its finance partners, is in the process of funding, producing and servicing its own slate of VFX-heavy, family friendly, action-adventure films. Pangea currently has one film in pre-production and anticipates principal photography on the film to begin in the fall of 2008. In addition, Pangea has six other films in development.

As a result of a favorable tax rebate and incentive structure, Pangea intends to complete a major portion of all stages of production on film projects in the State of New Mexico. The Company has established offices and is in the process of building out a state-of-the-art visual effects facility in Albuquerque. The Company anticipates expanding the capabilities of this facility throughout 2008. In addition to providing visual effects for its entire slate of films, Pangea, by leveraging the 25% State of New Mexico rebate program, intends to compete for large-scale contract service work with major studios and independent filmmakers.

Upon completion of the transaction with Direct Response Media the Officers and Directors of Pangea will also be named as the Officers and Directors of Direct Response as listed below:

Jonah Loop (Chief Executive Officer & Chairman of the Board)

John P. Ryan (Chief Financial Officer & Corporate Director)

Thomas Newton (Chief Operating Officer)

David Ziek (Senior Vice President)

Alex Franklin (VP Development & Corporate Director)

Jason Libersky (VP Technology & Strategy)

John Sullivan (Senior Technical Advisor & Corporate Director)

Detailed Biographies and Credits on each of the above persons will be forthcoming in future news releases.

The sources of this news release are Direct Response Media, Inc. and Pangea Pictures Corporation. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although Direct Response Media and Pangea Pictures Corporation believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by Direct Response Media, Pangea Pictures Corporation or any other person that the objective and plans of Pangea Pictures and Direct Response Media will ultimately be fulfilled as anticipated in this release.

Insignia, Inc.
Erik Bright / Eddie Michaels
310-777-1150
fax: 310-777-1155




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