CAMELOT ADDS FILM ASSETS IN SECOND QUARTER

Non-Recurring, One-Time Charges Contribute to Substantial Loss for Quarter

Irvine, CA – (August 24, 2010) Camelot Entertainment Group, Inc. (OTCBB: CMGR) (“Camelot”) announced today that it added significant film assets during the second quarter as detailed in its Form 10-Q for the second quarter filed yesterday.  At the same time, Camelot posted a substantial loss for the quarter, due mostly to non-recurring, one-time charges the Company took during the second quarter.

“The material increase in our total assets represents a positive step forward for us as we continue to implement our business model,” Camelot Chairman Robert Atwell stated.  “We are building a company that we believe will have a major impact in the independent film, television and digital media industry.  It is a long process, and we must remain focused on our main objectives.     Building our asset base and growing our internally generated cash flow is critical to our development.”

As of June 30, 2010, Camelot had $3,255,030 in total assets as compared to $147,015 in total assets as of December 31, 2009.  With Camelot continuing to implement its long-range business model, total liabilities also increased from $2,487,150 at December 31, 2009 to $10,331,739 at June 30, 2010.  The majority of the liabilities are related to non-recurring, one-time accrued expenses to related parties, the recent film and television library acquisition and notes payable.

“We are building a foundation for the future,” Atwell added.  “Our management team has gotten stronger.  We now have more than twenty full- and part-time employees and consultants.  We have three additional acquisitions targeted.  We are ramping up our content creation, distribution and production activity.”

Operating losses increased from $266,710 for the quarter ended June 30, 2009 to $4,510,861 for the quarter ended June 30, 2010, with the majority of the loss stemming from non-recurring, one-time charges the Company took during the second quarter.

“We don’t like losses anymore than any of our 4,600 plus stockholders,” Atwell continued.  “Suffering through these necessary growing pains is not easy.  We are laying the groundwork for exciting progress in the months and years ahead as we build our diversified revenue streams.  It’s a marathon, not a hundred yard dash.”

Tags: , ,

Leave a Reply