Platinum Studios Reports Fiscal 2007 Financial Results, Business Update, and Outlook

Tue Apr 1, 2008 7:00am EDT

* Reuters is not responsible for the content in this press release.

LOS ANGELES--(Business Wire)--
Platinum Studios, Inc. (OTCBB: PDOS), an entertainment company
that controls an international library of more than 5,600 comic book
characters, which it adapts and produces for film, television and all
other media, today reported financial results for the fiscal year
ended December 31, 2007.

   For the year ended December 31, 2007, Platinum reported net
revenues of $1.96 million compared to net revenues of $0.18 million
for fiscal year 2006, representing a year-over-year increase of more
than 1000%.

   The increased net revenues were primarily attributable to an
increase in option and acquisition fee revenue of $0.86 million and
first look revenue of $0.45 million. The Company is currently focused
on exploiting its large library of intellectual property. The option
and acquisition fee revenue is the result of a major Hollywood
Studio's interest in one of these properties. For the year ended
December 31, 2007, cost of revenues was $0.28 million compared to $0
for the year ended December 31, 2006. The increase is primarily due to
printing costs for comic books. In 2006 printing costs were included
as part of the licensing agreement with Top Cow Productions, Inc. and
thus, printing costs were not incurred by the Company in 2006.

   The Company also reported an increase in operating expenses of
$2.0 million or 63% for the year ended December 31, 2007 to $5.2
million, as compared to $3.17 million for fiscal year 2006. The
increase was due to increases in payroll, promotion and merchandising
costs, which were incurred to support the growth of the Company.
Research and development costs increased $0.19 million or 26% for the
year ended December 31, 2007 to $0.96 million, as compared to $0.76
million for fiscal year 2006. The increase was due to development of
additional intellectual properties.

   Depreciation and Amortization

   For the year ended December 31, 2007 depreciation and amortization
was $165,861 compared to $73,486 for the year ended December 31, 2006.
The increase is due to amortization of character rights and additional
capital leases for computer equipment.

   As a result of the foregoing, the net loss increased by $848,938
for the year ended December 31, 2007, to $5,121,718 or -$0.025 per
share, as compared to $4,272,780 for 2006.

   "Over the past year, we have experienced success in all aspects of
our business, and the increase of our revenue in 2007 demonstrates
that our multi-dimensional exploitation strategy is working, and our
company is growing," said Scott Mitchell Rosenberg, Platinum's
Chairman and CEO. "I am confident that our growth will continue in
2008 as our properties are introduced across all media outlets around
the world."

   Brian Altounian, Platinum's President and COO, provided insight
into the implementation of the company's business strategy in the
coming year saying, "We expect that our company's revenue growth in
the coming year will be driven primarily by ongoing successful
developments in our Filmed Entertainment division and our Print
Publishing division, while the initiatives in the Digital Publishing
division hold the potential for significant revenue contributions
later in the year."

   Mr. Rosenberg continued, saying, "The long term growth of these
revenue generating areas is dependent upon the ongoing creation of new
characters and engaging and exciting story lines drawn from our ever
growing Intellectual Property library of characters. To that end, our site and The Comic Book Challenge(TM) continue as
innovative and successful venues that bring the most creative new
authors and most compelling story lines into Platinum Studios."

   Operating Highlights

   Product Development and Intellectual Property - In preparation for
securing a library asset valuation from an independent valuation firm,
we took a new inventory count on our character list to account for all
characters and properties. The revised number of characters increased
to 5,622 as of December 31, 2007 from approximately 3,800 characters
as previously disclosed.

   Print Publishing - The Company expanded its publishing schedule
and released 43 comic books and graphic novels in 2007 after releasing
only 1 graphic novel in the previous year. In addition, the Company
signed a publishing deal with Harper Collins to distribute its debut
graphic novel, Cowboys & Aliens.

   Filmed Entertainment - The Company successfully sold its comic
book property, Unique, to Disney Studios and optioned Cowboys & Aliens
to Dreamworks in 2007.

   Digital Publishing - The Company expanded its digital publishing
exploitation plan in 2007, launching an online "e-commerce" store to
sell merchandise, comic books and other products
(, an online comics site to highlight the
printed comics and graphic novels (, a
mobile storefront for distribution of digital content
(, and it expanded DrunkDuck, its web-comics site
that hosts the digital distribution of the Company's printed comic
material and acts as a resource for independent comics creators to
post new material ( In addition, the Company has
developed multiple destination sites for individual comic properties.

   In late 2007, the Company partnered with Comflix to create an
online comics video player named Splastk ( that can be
syndicated over a large number of affiliate websites. The Splastk
player can serve a large amount of content, delivered over across a
wide network of affiliated websites that serve over 100,000,000
monthly page views.

   Merchandise & Licensing - In 2007, the Company extended its
branding philosophy to include the annual "The Comic Book
Challenge(TM)," a competition that allows independent creators to
pitch original comic book ideas to a panel of live judges. The winning
contestant receives a publishing deal with revenue sharing across all
distribution outlets. In 2007, the Company signed a corporate
sponsorship deal with AT&T and secured other sponsorship arrangements
with 5 other corporations to underwrite the event and expose the
Company to a wide audience.

   Corporate Infrastructure - The Company continues to attract and
retain the necessary talent to manage its growth, including
significant additions to its operations and sales functions. The
Company now has 24 full time employees.

   Business Outlook

   Print Publishing - The Company is looking to expand broad
publishing opportunities to international and other more traditional
publishing arrangements.

   Filmed Entertainment - The Company is partnering with independent
film producers to obtain independent financing for producing feature
films based on its characters and it anticipates moving forward in
production on at least 2 films in 2008. In addition, the Company is
formulating a multi-picture film production slate with the intent of
raising independent financing and producing those films outside of the
established studio system. The Company also intends to continue to
pitch its characters and story lines to Hollywood studios and
television networks.

   Digital Publishing - The Company intends to seek to expand revenue
opportunities in the area of digital distribution. Initiatives will
include new methods of delivery of comic content, advertising and
sponsorship opportunities for expanding the network of Platinum-owned
and -controlled websites, and the creation of comics-based online
casual games, among others.

   Merchandise & Licensing - In conjunction with film properties, the
Company will actively pursue merchandise and licensing opportunities
such as toys and apparel agreements, in all markets. The Company also
intends to seek agreements for console-based video games based on its

   Mr. Rosenberg concluded "The upcoming year is an exciting one for
us at Platinum Studios and we look forward to sharing our successes
with you. Please visit: for the
latest news and updates, and to sign up for our newsletter."

   About Platinum Studios, Inc.

   Platinum Studios (OTCBB: PDOS) is an entertainment company that
controls an international library of comic book characters from all
over the world, which it adapts, produces and licenses for all forms
of media including print, film, online, mobile / wireless, gaming, and
merchandising. Platinum Studios' library contains more than 5,600
characters spanning a full range of genres and styles, and also
includes properties such as, the industry's
preeminent webcomics community. Working with leading companies in the
entertainment and new media sectors, Platinum believes it is well
positioned to emerge as one of the front-runners in the creation of
new content across all media platforms. Platinum Studios - Comics
Fueling Media EVERYWHERE!

   To learn more about the company and to sign up for our newsletter,
please visit our website at .

   Platinum Studios Safe Harbor Statement

   Matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"anticipate," "believe," "estimate," "may," "intend," "expect" and
similar expressions identify such forward-looking statements. Actual
results, performance or achievements could differ materially from
those contemplated, expressed or implied by the forward-looking
statements contained herein. These forward-looking statements are
based largely on the expectations of Platinum Studios and are subject
to a number of risks and uncertainties. These include, but are not
limited to, risks and uncertainties associated with: the impact of
economic, competitive and other factors affecting Platinum Studios and
its operations; its markets, products, and distributor performance,
the impact on the national and local economies resulting from
terrorist actions, and U.S. actions subsequently, and other factors
detailed in reports filed by Platinum Studios.

Platinum Studios, Inc.
Media Relations:
Nick Alan Jones, 310-807-8155
Platinum Investor Requests:
Sean Becker, 702-478-7363

Copyright Business Wire 2008