What's New at MEC
Update as of June 2005


Dear Friends & Associates:


Investor Financing of Independent Film

Despite some criticism from Hollywood apologists, attorney-author, John W. Cones, continues to conduct one of the most popular legal forums on the Internet. Hundreds of Independent producers and film investors have visited Mr. Cones' Investor Financing of Independent Film discussion over the past 7 years. The forum, which is at http://www.mecfilms.com/coneslaw/archives, is hosted by MOVIE PUBS, the publishing division of Matrixx Entertainment.

John Cones, along with James Jaeger, President & CEO of Matrixx Entertainment, together launched the Film Industry Reform Movement (FIRM) back in March of 1998 with the following mission:

The Film Industry Reform Movement is an international association of concerned citizens, moviegoers and film industry professionals dedicated to the proposition that the motion picture is a significant medium for the communication of ideas, and therefore, has great potential for influencing human thinking and behavior.

F.I.R.M. is further based on the belief that movies, to a large extent, tend to mirror the values, interests, cultural perspectives and prejudices of their makers, and that all interest groups within any diverse society, especially in democratic societies, should have a fair and equal opportunity to tell their unique cultural (and other stories) through this important communications medium. Without these opportunities, the concept of a free marketplace of ideas -- a concept that underlies the highly-valued right of free speech -- will significantly be flawed and inevitably, one, or only a few special interest groups, will be able to express their views, through this powerful medium, to the exclusion, and ultimate detriment, of all others.

The full Mission Statement is at http://www.homevideo.net/FIRM/fmission.htm.

John is one of the few attorneys in the entertainment business that tells it like it is and his book, The Feature Film Distribution Deal, is considered the industry bible when it comes to protecting independent producers who confront the infamous studio distribution agreements.


Release of SNAPSHOT BLUES, a feature

The company has done a test marketing of SNAPSHOT BLUES on eBAY. It sells for $23.95 within 3 to 5 days each time we place it in an auction. Thus there seems to be a market.

If you are interested in distributing or representing this film, we are seeking a domestic and foreign deal for homevideo, cable and TV rights. Please contact Carol Schneider at contact@mecfilms.com or call (800) 576-2001. We have VHS and DVD screeners available.


Other Production News

2004 was Matrixx Entertainment's most productive year in terms of number of productions done, such ranging from a feature, to a number of documentaries, a TV spot and a multiple camera comedy show. We were literally so busy this past year, we didn't have the time to post this update for a number of months. Here is a summary of the productions done last year:

  • We recently did post production work and authored the DVD for a documentary about SANDY SAUNDERSON who presided over the War Tribunal at Nuremberg. The film was in association with William L. Van Alen, Jr. and CORNERSTONE ENTERTAINMENT. Here are some highlights of Sandy Saunderson's life and accomplishments:

    Captain Alexander (Sandy) Saunderson was born in England. During World War II, he enlisted in the British Army. He was captured by the Germans and remained a prisoner of war for five years. He was an accomplished pianist and held numerous concerts for the prisoners. He shared a prison cell with Sir John Leslie of Castle Leslie. While in prison, Sandy Sanunderson earned a law degree. He escaped from the prison and was appointed ADC and legal advisor to Lord Justice Lawrence, who presided over the War Tribunal at Nuremberg. While serving at Nuremberg, he was the last person to interview Hermann Goering, the infamous Nazi war criminal. After the War, Sandy Saunderson moved to California with his American wife, Lulu. He became Director of Auditions for the New York Metropolitan Opera and mentored a number of now famous opera singers, among which were Tom Hampson, Tom McKinney, Dean Rhodus, Bonnie Herwood and Frederika Von Stade. In latter years, Sandy Saunderson was supportive of Scouting Ireland's proposal to Develop the Castle Saunderson Estate as a Peace and Reconciliation Youth Activity Centre. Sandy Saunderson died on Thursday, September 16th, 2004 in Santa Barbara, California. He will always be remembered as an extremely witty and good-humored character with overwhelming charm.

    You can see the film at http://www.mecfilms.com/mid/movies/sandy1.wmv for dial-up and http://www.mecfilms.com/mid/movies/sandy2.wmv for broadband.


  • We produced, directed and edited a documentary for the COMETS last soccer game of 20 November 2004. The show is at http://www.mecfilms.com/mid/movies/comets1.wmv (dial-up) http://www.mecfilms.com/mid/movies/comets2.wmv (medium bandwidth) http://www.mecfilms.com/mid/movies/comets3.wmv (high-quality broadband)


  • We did post work for Barbara Bigford's new invention, BEACH POCKETS. You can see this incredible invention at http://www.mecfilms.com/mid/movies/barb_2.wmv


  • We produced, directed and edited a documentary for the MORGAN STANLEY and CHRISTIAN DeRIEMER TRUSTS. A broadband version is of the doc is up at http://www.mecfilms.com/mid/movies/CNL_04.wmv if you wish to screen it. Sorry, there is no dial-up version.


  • We co-produced, directed and edited a TV commercial for the NOAH FUND which ran on CNN, CNBC, FOX NEWS and MOVIEGUIDE TV hosted by Dr. Ted Baehr. James Jaeger co-wrote, directed and edited the spot. Dan Lantz and his crew at IMPULSE-FX did the computer graphics and storyboard. Kris Chandler did excellent work as the VO talent. The spot is at http://www.mecfilms.com/mid/movies/noahspot.wmv


  • We did camera work and post production for a pilot entitled COMEDY SHOWCASE for MONEY MATTERS producer, Richard Whitfield. Richard tapes his show at the COMCAST studios in Bala Cynwyd and occasionally does post work at our POST DIGITAL GROUP.


  • We produced, directed and completed post production on another installment of THE MAINLINE ANTIQUES CLUB held at the Merion Cricket Club. The show is available at www.MainlineNews.TV or by going directly to http://www.mecfilms.com/mid/movies/mlac_cricket1.wmv for a dial-up version or http://www.mecfilms.com/mid/movies/mlac_cricket2.wmv for a broadband version.


  • Lastly, we completed post production on a short documentary entitled, THE MAKING OF SNAPSHOT BLUES which is available on the SNAPSHOT BLUES DVD.



If you would like a free DVD of excerpts of productions done from 1981 through 2004, call us at 1-800-576-2001 or place an order by email at contact@mecfilms.com. You can also see a broadband version of the DVD by going to http://www.mecfilms.com/mid/movies/jrjcredits.wmv.


Lee Garmes Interview

One of the most accomplished filmmakers in history, Lee Garmes, has 111 features to his credit (14 for producing and directing and 97 for cinematography). Although officially unaccredited, Lee Garmes photographed a considerable portion of GONE WITH THE WIND.

Mr. Garmes directed the photography on 6 films nominated for an Academy Award and won an Academy Award for SHANGHAI EXPRESS. A brilliant experimenter, Lee Garmes, made many technical contributions to the industry and received the Eastman Kodak Award twice.

In a last interview, available at http://www.mecfilms.com/mid/movies/garmes.mpa, filmmaker James Jaeger inquires about turn-of-the-century Hollywood, lighting techniques, aspect ratios, working with Alfred Hitchcock and Billy Wylder, film vs tape, the future of film education. Also on this CD is James Jaeger's commentary on what it was like to work with Lee Garmes, ASC, DGA, ISPA.


New Tax Credits in PA

Two new bills, HB 147 and HB 83, have worked their way through the House and Senate of the Commonwealth of Pennsylvania. These bills have some of the tax advantages of Canada. HB 147 was sponsored by Hon. Thomas L. Stevenson, 319 Castle Shannon Blvd., Pittsburgh, PA 15234 and HB 83 was sponsored by Hon. Robert W. Godshall, 1702 Cowpath Road Hatfield, PA 19440.

James Jaeger proposed some additions, changes and deletions to HB 147 among which would encourage out-of-state studios and production companies to hire actors, directors, writers and producers from Pennsylvania. See House Bill 147 Suggestions. The original Bill favored below-line personnel over above-line personnel. About one third of Mr. Jaeger's suggestions were used. Additional changes were made by others to make the final Bill surprisingly supportive of the indigenous film community in Pennsylvania. This Bill is, however, still quite inferior to Canadian legislation and, of course, this is one of the reasons production is moving out of California so fast the state had to ram through emergency legislation to even begin to compete with Canada -- which has special effects studios, in Quebec for instance, that are far superior to anything in California or New York, and obviously Pennsylvania. Pennsylvania doesn't even have a camera store that rents 35mm cameras and hasn't had one since Oscar Hirt shut down.


Studio Complex

Matrixx Entertainment has drawn up a preliminary blue print, business plan and budget for a proposed $165 million studio complex called OAK STUDIOS. Combined with better tax credits and the Internet distribution of movies over the COMCAST system, this complex could create a production environment on par with Los Angeles and Canada. Further, it would generate net export revenue for the Commonwealth of Pennsylvania in excess of revenues generated by gambling. What's a government doing in the business of gambling? Despicable! Off-purpose! Ben Franklin would be ashamed of the citizens that have allowed their government to sink to such levels of irresponsibility.

James Jaeger has taken the OAK STUDIOS plan to a number of government representatives, potential financiers and entrepreneurs. The sum of $100,000 is sought to conduct a more extensive 6-month feasibility study. Among those being solicited are: Merv Griffin, John Travolta, Ted Turner, Donald Trump, Mel Gibson, Kevin Bacon, Bill Gates, Joan Rivers, Will Smith, Night Shyamalan and Bruce Willis, some of which have expressed an interest in financing or developing a studio in the past. It is anticipated that the first person or entity that provides the initial feasibility study will have the option of having OAK STUDIOS named after them or their company.

A copy of the executive summary for OAK STUDIOS along with a letter explaining the economic advantages of such a production complex has been sent to Governor Ed Rendell, Sharon Pinkenson of the Philadelphia Film Office, Congressmen Bob Flick, Thomas Stevenson, Robert Godshall and a number of others. The plan was also sent to Brian Robertson, President & CEO of COMCAST. To date none of them have responded. This is no surprise because Pennsylvania is notorious for its ability to avoid the future. For instance, Pennsylvania was the only state that didn't think it would be a good idea to form the United States of America and thus didn't want to sign the Declaration of Independence. Such cowardly ignorance was finally overturned by Ben Franklin. Pennsylvania investors and venture capital firms to this very day carry the tradition of being cowards and bozos when it comes to figuring out what new enterprises have promise. For instance, we took the MID Business plan (http://www.mecfilms.com/mid/plan) to just about every sophisticated investor, investment group and venture firm in Pennsylvania in 1998 to try and interest them on this new-fangled thing called "video-on-demand." All of them passed citing such things as 'we don't think there is a business model for delivering movies-on-demand(tm) over the Internet." Don't look now, but COMCAST has now preempted our business plan and re-named it ON-DEMAND. Thus, with Pennsylvania's bozo track record (hey Bozo the Clown is even a creation of a Pennsylvania producer, Suzi Nash), there is a very slim chance OAK STUDIOS will ever be financed or built here unless COMCAST steps in and recognizes the tremendous profits available for its stockholders through a stepped-up program of production and Internet distribution. Brian, give us a call.

If you are interested in reviewing the full blueprint (and other materials that we have developed to date) with a view towards providing the above feasibility financing or in taking an active role in management and providing all or part of the construction budget, contact Mark Hamilton at 800/576-2001 or contact@mecfilms.com to arrange an appointment.

For security reasons we cannot send out copies of the full business plan or financials. Interested parties are however welcome to visit our offices near Valley Forge, Pennsylvania for a full, 2-hour, presentation of OAK STUDIOS and Matrixx Entertainment's anticipated role.


Authoring and Burning DVDs

We have spent considerable time and energy working out a cost-effective way of authoring high quality DVDs. Even though the technology is becoming more accessible, authoring a DVD is much more difficult than it looks. We tried out a number of CODECS, authoring applications and burning utilities over a number of different DVD media. Then we sent out test DVDs to 120 people across the country. All of the test results are now in. We have found that DVDs created in a certain way will play on a majority of DVD stand-alone players and look great.

If you have a show, movie or demo tape you want authored and burned to DVD, give us a call at 610/688-9212. We are now experts in authoring DVDs and getting you any number of copies you desire for the LEAST price possible. We guarantee our research.


Development

A 7th draft of the TESLA story has been written by James Jaeger. James contacted Mel Gibson's company, ICON PRODUCTIONS, and they are STILL reviewing the treatment! Matrixx began research on Nikola Tesla in 1986 and completion of the first draft story was announced on the Internet in late 1999 with the project, and some of the packaging, formally announced in the Hollywood Reporter in February of 2000. The project continues to be updated in Matrixx Entertainment's listing in the HOLLYWOOD CREATIVE DIRECTORY and is in ACTIVE development.

SPLASH OF RED has been put back into development and we now have a new draft of the screenplay, courtesy of Ken Gullekson. The company will be retaining the services of an agent to represent this project and negotiations are taking place now.

THE SINGULARITY is being developed as an experiment over at the MIND-X. The MIND-X is an AI discussion forum hosted by Ray Kurzweil. THE SINGULARITY addresses the period of time where technological advances are made so rapidly it will be difficult or impossible for humans to keep up. Many think that superintelligent AI will emerge during or after this paradigm shift in human affairs. See Staring into the Singularity at http://www.mecfilms.com/universe/menu3.htm.

THE SAGA OF BIOS & ZOE - Quest to Solve the Mystery of Human Aging has gone into development. The company is working with Dr. Michael West of Advanced Cell Technologies on the treatment for a documentary which will be aired on the WEALTH TV NETWORK and other networks. The treatment can be read at http://www.mecfilms.com/saga.doc. If you are interested in providing all or part of the development or production budget with an ACTIVE role in the producer unit, please contact us. Funds required are $100,000.

Our other feature and documentary projects in development are at http://www.mecfilms.com/dna/indev. If you see any you are interested in participating in as an active investor, contact us at contact@mecfilms.com.



Matrixx Internet Distribution

We have added VIDEOARCHIVES.TV and MAINLINENEWS.TV to our line up of Exhibition Websites.

PAY-PER-VIEW.COM at http://www.pay-per-view.com and the HOME VIDEO NETWORK at http://www.homevideo.net have been re-worked and we are now delivering films and shows at various data rates, ranging from 56k to over 711k. (Last Spring, a sports network offered us the sum of $575,000 for the domain name of PAY-PER-VIEW.COM, however we declined to sell because, in the broadband future, high-profile domain names such as this will be worth millions.) Although the sound is okay at each of our exhibition websites, the low bandwidth shows don't look that great at 56k, but you can use them in the same way you use "thumbnail" pictures to get an idea what it's about. Then if it seems like something you want to watch, you can then download a medium- or high-quality version. The medium-quality versions are VHS-quality and the high-quality versions are DVD-quality. You do need either DSL, Cable or high-speed wireless to access these unless you don't mind waiting for hours.

After talking it over with a number of producers and investors we have polished the Deal and updated the Distribution Agreement at MID http://www.mecfilms.com/mid. If you are a producer or a filmmaker with a movie or TV show, you might check this out as this could be a good deal for you.

History and Background:

As you may remember, after we first announced our Internet distribution plans in the August 1, 1996 edition of the Main Line Times, many thought that such distribution would arrive with so-called "streaming" technology. This didn't really happen due to the low bandwidths and, as you have seen, most of these dot coms folded. Not us (see Main Line Times article) for we never felt streaming would be viable and still don't until everyone is using broadband. We did anticipate higher bandwidth, delivered by DSL, and we originally reported that DSL "has been no panacea because many people still cannot get DSL in their area and some report that there are a lot of hassles with it." But this has changed and now DSL is performing very well in most areas. It has some stiff competition from Internet cable, and as you will see, both of these may have some stiff competition from the emerging high-speed wireless services. Check out what our partners over at ICDC-Wireless are doing with their new high-speed wireless service that delivers data rates from 384 Kbs to an astounding 6.2 Mbs and sign up for an account. We now believe the real video-on-demand revolution will come eventually with wireless (such as ICDC), cable (such as Comcast) and dumb fiber optic networks. The dumb fiber networks are so fast, that to tie them in with any of the existing phone, wireless, satellite or even cable networks would be like throwing swine on pearls. Thus the savvy companies are setting up totally independent networks. Even the dreaded "last mile" will be provided by new and independent wireless technologies (such as modulated lasers and other technologies provided by such companies as JDS Uniphase).

The Business Plan for Matrixx Internet Distribution is continuing to be refined to reflect these new realities and a demo site for PAY-PER-VIEW.COM and the HOME VIDEO NETWORK have been up for some time.


Non-Linear Editing Studios

Post Digital Group has AGAIN upgraded its Non-Linear Edit system in Suite B to Premiere 6.5, Windows XP Pro and DV-500 Plus version 4.0. The system has extensive real-time transitions, very good title capabilities, special FX and full color, density and gamma control. With Premiere you get full digital audio sweetening/mixdown and ADR capabilities on-the-fly. The response time and action of 6.5 is greatly improved and now is every bit as good as Final Cut Pro and AVID. We have Premiere Pro as well but have not fully switched over to it. Studio B is located at our Main Line offices and available to clients at an introductory rate.

Non-linear
Studio

To book time or for more information, click here.


A little History

A lot of our "dot com" would-be competitors are now out of business . . . but not us. . . the World's First Virtual Movie Studio. We knew from the start it would take some time for enough bandwidth to be present to support significant quality movie distribution over the Internet. . . and we are still preparing for this eventuality which we believe will occur within 5 to 10 years. Unfortunately greed drove people to do some stupid things . . . like jump the gun with their investors' money. Sad but true.

Matrixx was founded in 1981 in Hollywood, California. Below are the updates for the past several years.


Discussion Forums

Your suggestions and questions about the filmmaking process are welcome and you may post them at our Film Discussion Den. As time permits, I will try and answer questions about the nuts and bolts of producing, directing and editing features. This is a good opportunity to get some free advice based on the hassles and successes I have had in the movie business since I got my first job in it around 1974. To a lesser degree I can answer questions you may have on lighting, cinematography and screenwriting.

Again, if you need some legal help financing your new movie project, John Cones, Esq., has been conducting a popular discussion at Investor Financing of Independent Film.


Film Reform

If you feel the Film Industry needs some reform, you can voice your views or read the archives at the FIRM Discussion Forum. I might add that FIRM is not a part of Matrixx Entertainment and any views expressed there are not necessarily the feelings of Matrixx Entertainment's stockholders, directors, officers, employees or affiliates (unless, of course, specifically written by such).

Unfortunately, whenever anyone tries to improve something, about 20% come out of the woodwork and oppose improvement. True to form, various apologists in the Philadelphia and Los Angeles film communities have tried to paint James Jaeger, John Cones and/or the FIRM as anti-Semitic for their involvement in the call for more diversity in the top-most ranks of the MPAA studio/distributors (see http://www.homevideo.net/FIRM/control.htm#execlist). But before you believe any gossip or slander that may come your way, check out the FIRM Mission Statement at http://www.homevideo.net/FIRM/fmission.htm and some of the background information available at http://www.homevideo.net/FIRM/bginfo.htm, in particular the anti-Semitic Sword at http://www.homevideo.net/FIRM/shields.htm. Also, feel free to report anyone you have heard making a false accusation of anti-Semitism as this is sometimes done in order to thwart legitimate inquiry into the unethical, predatory and often illegal business practices of the studio/distributors. See Hollywood's True Agenda at http://www.homevideo.net/FIRM/agenda.htm to see how various apologists in the film industry treated Mel Gibson for his handling of THE PASSION OF THE CHRIST.


Thank you for your continued support of Matrixx Entertainment. You are greatly appreciated and we are making steady progress.

Sincerely,


James R. Jaeger II,
President & CEO





Although the information herein is believed to be accurate and correct, anything to be added, changed or deleted should be brought to the attention of the VP Public Relations within five business days. This Update does not and cannot constitute an offer to sell any securities of Matrixx Entertainment Corporation. Any projections, if any, made herein represent a goal only and there can be no assurance of attainment thereof. This Update replaces any earlier Updates as such may pertain to the subject matter hereof. Matrixx Entertainment Corporation, including any of its subsidiaries or divisions, does not endorse any particular philosophy, religion, political ideology or reform movement(s) and any expressed, if any, is done so with the understanding such is the sole viewpoint and responsibility of the person or entity promulgating same.


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