RMDG Releases Shareholders Letter

RMD Entertainment Group (OTC: RMDG)

Dear Shareholders,

It is with great pleasure that I address you with this letter today. Let me first bring you up to speed with some developments for RMDG. We have had some changes within the staff. Mr. Nitin Amersey is no longer the Chairman of the company. I have accepted his letter of resignation. Management appreciates all Nitin's efforts with RMDG and wishes him well in his future endeavors. The change was made because we collectively decided it was time to go in another direction with the seat of Chairman for the company. It is my wish to fill this position with someone with extensive management exposure to the entertainment and broadcast businesses. I will temporarily fill this position and the search has begun for a suitable candidate that can meet our criteria. In addition, I have asked for and received Mr. Frank Toson Jr. aka KC Flightt's letter of resignation as well. KC is a very talented individual that has worked with some of the giants of music in the past. We are disappointed his position here did not work out and wish him the best of luck in his future endeavors.

As far as progress made in our product launches, Roc Monee's album is going into a full blown promotion mode starting next week with regional radio promotion throughout the country. These will help us determine with the help of our distributors, the in store date of his album both in North America and Europe. This effort is being headed by Mr. Frederick Rollins, President of Special Projects and Promotion. Mr. Mark Davis, our Head of Digital Distribution, will be releasing all digital schedules within the next 14 days. We remain extremely pleased with this project and I am confident our staff and distributors will maximize our revenue streams globally.

Today is a day of clarity. I have received feedback from some of you asking for a better understanding of the business model of RMDG and its subsidiaries. (please note -- all investments made in the market or any other entity should be done with a general understanding of the business model and I urge you all to adhere to this general principle.) Here is a brief outline of the business model of RMDG and the revenue sources within it.

All of the subsidiaries of RMD Entertainment Group share a common target demographic of 14 to 24 year old consumer of Hip Hop or Urban Products. Research has shown time and again that this is the most targeted demographic in the world because of its sheer spending power in marketplaces around the globe. Last year alone, Hip Hop related products exceeded ten billion dollars globally.

RMDG has three subsidiaries within its portfolio and each one has a distinct product line(s) and method(s) of consumer delivery.

1. RMD Entertainment is a record label. Its product is music. Revenue is generated through the sales of compact discs, music sold on the web in downloads, and ring-tones to mobile phone customers. Currently RMD Entertainment uses Bungalo Records (Distributed by Universal Video and Music Distribution) to distribute its compact discs in North America. All European Release compact discs are distributed by the Pickwick Group. Digital download and ring-tone sales are facilitated by 56 distributors world-wide.

2. D Bands is a Hip Hop/athletic style clothing line. The company specializes in head band and hat sales but has recently expanded its line to include sweat suits and other active gear. Revenue is generated by in store sales of the product, on-line sales, corporate buys of the product in which a sponsor would buy a quantity wholesale and put its logo on it for an advertising give away, and point of sales at special events such as the NCAA Final Four Basketball Tournament.

3. MOTV is a broadcast corporation specializing in delivering content in a live stream to mobile phones and PDAs as well as IPTV. Its revenue is generated by subscription to its service, advertising on its programming by corporate sponsors, and back end revenue generated in its marketplace where ancillary products are sold. MOTV also has a production company contained within its corporate structure which could create additional opportunities for revenue through program development and content licensing with traditional cable and network channels.

4. The defense business Management is evaluating its options related to the defense business of Sciax Technology Inc.

So how do the three companies relate to each other and the common goal of increasing shareholder value for our stockholders? RMDG companies can produce a music release, promote it, sell it globally, our artists can wear our clothing line as an endorsement, we can broadcast it all on mobile phones and on-line (IPTV) around the world, and once again sell the music and clothing products during that broadcast. It is a true global entertainment group. Management's goal is to have a portfolio that matures and eventually looks like Sony Music, Sean John Clothing, and Comcast Cable Services. We feel this type of business platform is quite formidable if we continue to make progress as we have these past few months. It is my goal as CEO of RMDG to make this company profitable as soon as possible. As always, you have my commitment to success, hard work, and sincere thanks for your support.

Best Regards to All and God Bless,

Giorgio C Costonis
CEO
RMD Entertainment Group
"Where Hip Hop Meets Wall Street"
RMDG and its subsidiaries

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