"Since our acquisition by CADItec International, Inc., AMC American Music Corporation's management has been working very hard to enhance its competitive position in the music industry and to transform AMC American Music Corporation into a strong publicly traded company. I strongly believe that management has now put AMC American Music Corporation in a solid position to successfully reach its goals."

David Michery adds: "We have been focusing on implementing AMC's growth strategy by continuing to negotiate deals with established artists, producers and entrepreneurs with a track record of successful and predictable sales. We are now in position to close those contracts, and to begin distributing some exciting new albums and products. In the upcoming weeks, AMC plans to announce to the music industry and the public some very exciting deals with several well-known artists, producers and entertainment industry entrepreneurs. These deals will not only bring AMC to the forefront of the music industry but more importantly to the attention of millions of music consumers. Through these deals, AMC can continue to use the experience and the talent of those selected artists, producers, and entrepreneurs to develop new hit records and secure a superstar rooster of artists for the record label.

By entering into joint ventures with successful artists, producers and entrepreneurs, AMC should realize predictable projected unit sales. This strategy also reduces the risks associated with marketing and promoting new albums and tends to increase sales, because these artists and producers have an existing consumer base. The buyers for music retailers tend to purchase more initial units from artists associated with other successful artists and producers, and from those well-known and successful artists and producers."

We are also planning to enter into some exciting agreements with other entertainment and media companies to expand our product releases and to take advantage of cross marketing opportunities with their products and releases. AMC has been in discussions with several motion picture companies to secure rights to the soundtracks to coincide with the upcoming releases of their motions pictures. Additionally, AMC has been exploring an opportunity to enter into an agreement with a television media company to have the exclusive right to distribute its products to retail.

We are prepared to launch the operation of our independent distribution company, under the name American Southwest. For over a year, AMC has been planning the launch of this very important profit unit. American Southwest will allow us to distribute records for a number of independent labels that produce recordings that do not have historical sales large enough to allow the labels to secure distribution agreements with major distributors such as ADA or Universal. Many of these labels, however, experience consistent sales, and some succeed in producing hit records. With the assistance of a veteran record company executive and entrepreneur, American Southwest will begin selling records this summer. Our management projects that, based upon their recent experience and the prospective labels ready to execute distribution contracts, in the first full year of operations, the gross sales for American Southwest will add $30,000,000 to AMC revenues during that period.

To further our efforts as public company, David Michery adds that management is preparing to file the company's application for listing is common stock on the American Stock Exchange. We feel that AMC meets all of the "Quantitative Standards" set for initial listing on the American Stock Exchange, except for its stock price. As part of our preparation for this application, management is currently preparing to file a form 10 with the Securities and Exchange, and implement new corporate governance standards to comply with the standards for listing on the American Stock Exchange.

David Michery further stated: "I am very excited about what the future has in store for AMC American Music Company. We are embarking upon building an exciting entertainment company like Interscope, and Arista.

About AMC American Music Corporation

AMC American Music, the original AMC record label, was founded in 1995. The Company primarily sells its products to consumers through retail record stores and wholesale distribution, under the label names of Direct Music Group, AMC, and WWIII. Through its affiliate, Direct Music Group, AMC distributes its records through Alternative Distribution Alliance. AMC acquires the exclusive worldwide rights to commercially market, sell and distribute all copies of recordings produced by recording artists, producers, and third-party labels. AMC is currently forming an independent distribution company under the name American Southwest for the purpose of distributing directly to retailers and wholesalers, pre-recorded music of independent third-party record labels that AMC elects not to distribute through ADA.

AMC American Music Corporation, Inc. (California) is an operating subsidiary of the CADItec International, Inc. (which will soon change its name to AMC American Music Corporation, Inc (Delaware)). AMC American Music will continue to develop, publish and market popular Rock, Hip Hop, Gospel and Latino Music, and distribute that music through a domestic distribution agreement with Direct Music Group, and Alternative Distribution Alliance, (ADA). ADA is a division of the Warner Music Group, a subsidiary of Time Warner Inc. (NYSE: TWZ).