TEAM Communications Group, Inc., Names Michael Jay Solomon
Chairman and CEO
Expects to Report Loss for Full Year 2000
LOS ANGELES, Calif.--(BUSINESS WIRE)--Feb. 13, 2001--TEAM Communications Group, Inc. (Nasdaq:TMTV - news; Neuer
Markt:TME) announced today that Michael Jay Solomon has been appointed Chairman of the Board and Chief Executive Officer of the
Company effective immediately. Mr. Solomon, who is currently a member of the Company's Board of Directors, was the co-founder of
Telepictures Corp., which later merged with Lorimar to become Lorimar Telepictures Corporation, where Mr. Solomon served as President.
Lorimar Telepictures was subsequently acquired by Warner Bros., where Mr. Solomon served as President of Warner Bros. International
Television. Drew S. Levin, the Company's former Chief Executive Officer, has resigned from the Company and its Board of Directors. Jay J.
Shapiro, the Company's acting Chief Financial Officer and formerly the head of the entertainment and accounting practice of Laventhol &
Horwath, has been appointed President and Chief Operating Officer.
The Company also reported that it currently expects to take a charge of approximately $21,000,000 against its results of operations for the
year 2000. The Company stated that the amount of the expected charge is subject to adjustment, including possible increase, upon audit of
the Company's year 2000 operations. It is also subject to completion of an internal examination of whether certain of the Company's film
library acquisition and distribution transactions during the past year lacked economic substance. As a result of this charge, the Company
anticipates that it will report a loss for the year 2000 of between $18,000,000 and $19,500,000 or a potentially larger amount. The Company
also disclosed that it has short-term liquidity needs, which Mr. Solomon stated will receive his immediate attention.
Mr. Solomon stated, ``I am gratified by the support of the Board. I look forward to working with the executives of the Company, including Jay
Shapiro, the new President and Chief Operating Officer, and Jamie Waldron, President of Production, in building on the Company's core
business activities. It is my hope that we can build on the increased production activities of 2000 and return the Company to profitability as
soon as practicable.'' Mr. Solomon further stated, ``I intend to focus whatever time is necessary to rebuild TEAM and make it a success.''
The Company stated that the charges expected to be reflected in its year 2000 results will include the establishment of approximately
$11,000,000 of reserves against long-term receivables and $10,000,000 of reserves relating to the valuation of its film programming
inventory. The Company also expects to record an adjustment of approximately $2,000,000 as a result of the early adoption of certain new
accounting requirements for producers and distributors of films.
These adjustments include $9,000,000 related to the elimination of the Company's investment associated with its 1999 acquisition of
Dandelion U.K. The Company stated that it intends to restructure its present U.K. operations, and that Noel Cronin, the Managing Director of
Team Dandelion, has agreed to terminate his employment agreement with the Company. The Company further reported that it has instituted
a strategic review of its acquired film libraries, with a view to increasing the rates at which the Company amortizes its investments in those
libraries.
As a result of the anticipated adjustments and reserves, the Company expects that it will not be in compliance with the terms of its existing
bank financing facilities, and is seeking appropriate waivers of these potential covenant defaults. The Company is also seeking to
restructure its financing arrangements.
Mr. Solomon is an established veteran of the entertainment industry and one of the pioneers of television syndication. After leaving Warner
Bros., Mr. Solomon established Solomon Entertainment, which currently owns production companies in Latin America, Spain and Rumania.
Mr. Solomon is also building entertainment centers in Miami and Puerto Rico, and is also the Chairman of the Board and Chief Executive
Officer of Max International (OTCBB:MXTI - news).
TEAM Communications Group, Inc. (Nasdaq:TMTV; Neuer Markt:TME) is a leading multinational production and distribution company
specializing in family, action, adventure and reality-based programming for worldwide distribution. TEAM Communications Group currently
owns and distributes over 4,000 hours of programming worldwide. The Company also produces a wide variety of programming for leading
U.S. and international broadcasters. TEAM maintains offices in Los Angeles, London through its TEAM Dandelion Ltd. operations and
Munich through its TEAM Entertainment Germany (GmbH) operations. Its shares trade on NASDAQ-NMS (TMTV) and on the German
Neuer Markt (TME).
The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor'' for forward-looking statements. Certain information included in
this news release (as well as information included in oral statements or other written statements made or to be made by TEAM
Communications Group, Inc.) contains statements that are forward-looking, such as statements relating to consummation of the
transaction, anticipated future revenues of the companies and success of current product offerings. Such forward-looking information
involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may
differ materially from those expressed in any forward-looking statements made by or on behalf of TEAM Communications Group, Inc. For a
description of additional risks and uncertainties, please refer to TEAM Communications Group, Inc. filings with the Securities and Exchange
Commission, including Forms 10-K and 10-Q.
NOTE TO EDITORS: Conference call to be held Wednesday, Feb. 14 at 4:10 p.m. ET.
Chairman and CEO
Expects to Report Loss for Full Year 2000
LOS ANGELES, Calif.--(BUSINESS WIRE)--Feb. 13, 2001--TEAM Communications Group, Inc. (Nasdaq:TMTV - news; Neuer
Markt:TME) announced today that Michael Jay Solomon has been appointed Chairman of the Board and Chief Executive Officer of the
Company effective immediately. Mr. Solomon, who is currently a member of the Company's Board of Directors, was the co-founder of
Telepictures Corp., which later merged with Lorimar to become Lorimar Telepictures Corporation, where Mr. Solomon served as President.
Lorimar Telepictures was subsequently acquired by Warner Bros., where Mr. Solomon served as President of Warner Bros. International
Television. Drew S. Levin, the Company's former Chief Executive Officer, has resigned from the Company and its Board of Directors. Jay J.
Shapiro, the Company's acting Chief Financial Officer and formerly the head of the entertainment and accounting practice of Laventhol &
Horwath, has been appointed President and Chief Operating Officer.
The Company also reported that it currently expects to take a charge of approximately $21,000,000 against its results of operations for the
year 2000. The Company stated that the amount of the expected charge is subject to adjustment, including possible increase, upon audit of
the Company's year 2000 operations. It is also subject to completion of an internal examination of whether certain of the Company's film
library acquisition and distribution transactions during the past year lacked economic substance. As a result of this charge, the Company
anticipates that it will report a loss for the year 2000 of between $18,000,000 and $19,500,000 or a potentially larger amount. The Company
also disclosed that it has short-term liquidity needs, which Mr. Solomon stated will receive his immediate attention.
Mr. Solomon stated, ``I am gratified by the support of the Board. I look forward to working with the executives of the Company, including Jay
Shapiro, the new President and Chief Operating Officer, and Jamie Waldron, President of Production, in building on the Company's core
business activities. It is my hope that we can build on the increased production activities of 2000 and return the Company to profitability as
soon as practicable.'' Mr. Solomon further stated, ``I intend to focus whatever time is necessary to rebuild TEAM and make it a success.''
The Company stated that the charges expected to be reflected in its year 2000 results will include the establishment of approximately
$11,000,000 of reserves against long-term receivables and $10,000,000 of reserves relating to the valuation of its film programming
inventory. The Company also expects to record an adjustment of approximately $2,000,000 as a result of the early adoption of certain new
accounting requirements for producers and distributors of films.
These adjustments include $9,000,000 related to the elimination of the Company's investment associated with its 1999 acquisition of
Dandelion U.K. The Company stated that it intends to restructure its present U.K. operations, and that Noel Cronin, the Managing Director of
Team Dandelion, has agreed to terminate his employment agreement with the Company. The Company further reported that it has instituted
a strategic review of its acquired film libraries, with a view to increasing the rates at which the Company amortizes its investments in those
libraries.
As a result of the anticipated adjustments and reserves, the Company expects that it will not be in compliance with the terms of its existing
bank financing facilities, and is seeking appropriate waivers of these potential covenant defaults. The Company is also seeking to
restructure its financing arrangements.
Mr. Solomon is an established veteran of the entertainment industry and one of the pioneers of television syndication. After leaving Warner
Bros., Mr. Solomon established Solomon Entertainment, which currently owns production companies in Latin America, Spain and Rumania.
Mr. Solomon is also building entertainment centers in Miami and Puerto Rico, and is also the Chairman of the Board and Chief Executive
Officer of Max International (OTCBB:MXTI - news).
TEAM Communications Group, Inc. (Nasdaq:TMTV; Neuer Markt:TME) is a leading multinational production and distribution company
specializing in family, action, adventure and reality-based programming for worldwide distribution. TEAM Communications Group currently
owns and distributes over 4,000 hours of programming worldwide. The Company also produces a wide variety of programming for leading
U.S. and international broadcasters. TEAM maintains offices in Los Angeles, London through its TEAM Dandelion Ltd. operations and
Munich through its TEAM Entertainment Germany (GmbH) operations. Its shares trade on NASDAQ-NMS (TMTV) and on the German
Neuer Markt (TME).
The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor'' for forward-looking statements. Certain information included in
this news release (as well as information included in oral statements or other written statements made or to be made by TEAM
Communications Group, Inc.) contains statements that are forward-looking, such as statements relating to consummation of the
transaction, anticipated future revenues of the companies and success of current product offerings. Such forward-looking information
involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may
differ materially from those expressed in any forward-looking statements made by or on behalf of TEAM Communications Group, Inc. For a
description of additional risks and uncertainties, please refer to TEAM Communications Group, Inc. filings with the Securities and Exchange
Commission, including Forms 10-K and 10-Q.
NOTE TO EDITORS: Conference call to be held Wednesday, Feb. 14 at 4:10 p.m. ET.
