Mini Mogul Enterprises (Matrixx Entertainment's quality control and human resources division), performs several functions for the Company. Among these are trainining MEC employees through the Entertainment Orientation Course; helping entrepreneurs establish their own entertainment companies; and selling books, manuals and correspondence courses through Movie Pubs.

Serious students of film - who have learned the basics of writing and filmmaking - before or after going to film school, who want to develop their movie careers, can greatly benefit by the EOC, and perhaps shave years off their ascent to directing and producing features by setting up their own production "franchise."

Mini Mogul Enterprises will provide administrative and technical support for those who license The Movie Mogul Manual and establish their own feature film production "franchise" or The Mini Mogul Manual for those who opt to produce student and semi-professional productions as "Mini Mogul Productions."

Although MME does not establish franchises, in the legal sense of the word (because there is no use of trademarks nor is the technical and administrative help mandatory), this concept has never been done before for motion picture production for many reasons.

Starting with the materials found in The Mini Mogul Manual, licensees progress through a 1-Day Shoot,

2-3 Day Shoot, 6-Day Shoot (Mini Mogul Productions)and ultimately onto a full Feature Film Shoot of 18 or more days (Movie Mogul Productions) . By training new producers in this fashion, the Company plans on creating a matrix for economically produced future film product. Pursuant to the Movie Company Licensing Agreement, the Company owns equity in each of its "franchise" production companies in consideration for providing volitional consulting and management support through various avenues.

The "franchise" program has access to state-of-the-art technology and administrative know-how provided by its founders as well as on an ongoing, consulting basis by outside executives, talents and technicians, both in the entertainment industry and other industries. Trade secret aspects of the licensable materials provided by MME ensure that the Company is able to direct the administrative and technical knowledge-base to signatory companies and to those entrepreneurs and talents who want to break-in to directing and/or producing features at minimal capital-entry costs and within a safer learning curve.

The Company retains the right, but not the obligation, to receive two screen credits on each motion picture produced by a franchise production during the term of the licensing agreement. The first screen credit is to recognize that individual who provided the most help and support and the other screen credit is to recognize Matrixx Entertainment in general.

In future years, this Course will provide a source of symbiotic relationships and on-going film product for Matrixx Internet Distribution to release as well as royalties for Licensees of the Movie Mogul Manual. Revenue generated by a blockbuster release from any one or many Licensee companies may be significant to the stockholders of MEC (which include franchise Licensees) not to mention the screen credit value for the Company, its officers and stockholders.

Under the banners of its first four pilot franchise companies, SILVERTHORNE-MATRIXX PRODUCTIONS, MYOPIC FILMS, DEEP LAKE PICTURES and LION LAMB PRODUCTIONS, the Company has completed seven pilot Mini Mogul Productions entitled: RETURN, THE PICKUP, THE MAN WHO LOVED DONUTS, MOPS, RESERVOIR ZOMBIES, GEORGE and SKINS. THE MAN WHO LOVED DONUTS which stars Big Daddy Graham was one of the first films to utilize computer-based, hard disc, digital audio production as well as the Video Toaster. THE PICKUP was the first film in history to utilize personal computers for script breakdown and production scheduling. SKINS has just been completed post in Los Angeles.

Both THE MAN WHO LOVED DONUTS and MOPS have been sold to two independent television stations in California and the former won a minor film festival award. THE PICKUP has aired on several cable channels over the years.

MYOPIC FILMS has recently relocated its offices to Los Angeles, California and has two feature projects (LOST and STAR VEHICLE) and a half hour comedy in development. It is anticipated that LOST will be shot in the Philadelphia area this Spring. DEEP LAKE PICTURES is continuing its operations in West Chester, Pennsylvania and has several projects in various stages of development.

It is the Company's goal to license an additional 16 production companies in the next three years. The range for licensing fees is 1% to 10% with 5% being the average fee.

By retaining a modest interest in each franchise setup, this new "studio-system" is enabling MME to establish and promote numerous, semi-autonomous production entities, any one (or many) of which could produce the next important features, allowing the Company to participate in gross revenues which may be significant over the long-term.

In addition to utilizing known personalties as appropriate, the Company is developing its own talent and retaining an option on future services. By doing this, the Company hopes to bring back a portion of the "old studio system" which was less ad hoc and more sympathetic to new talent, than the system today. This includes helping existing "Stars" develop careers in directing and producing features, through the production company franchise program.

One of Mini Mogul Enterprises's most important functions is publishing books, manuals and correspondence courses on all aspects of production and the entertainment industry at Movie Pubs. To find out more about Movie Pubs click here.