AmeriDream Entertainment, Inc. (OTCBB: AMDR)

Dear Readers, 

As requested, we have brought you, our readers, more information on AmeriDreamEntertainment (otcbb: AMDR), a film production and distribution company that we are covering indefinitely. You might recall our previous profile  (for the complete profile Click here) or our exclusive audio interview with AMDR CEO Lang Elliott  (Click Here) who gave us his take on the company and the entertainment industry.

Mr. Elliott knows his way around a movie studio and that includes movie financing. He has also initiated a new approach for investing in film projects by investing in tax liens. Sound crazy? Who would have ever have thought Sallie Mae would own or manage $52.9 billion in student loans today? 

This may be a new approach, but we find his entrepreneurial spirit encouraging and if nothing else, worth listening to when it comes to film financing.

After all, Elliott has over 30 years of film experience, is a member of the Directors Guild of America and was the founder of TriStar Pictures Inc. He also co-founded Longshot Enterprises with actor and comedian Tim Conway to produce “Dorf On Golf” and the “Dorf” home video series. 

How would someone finance a movie with a tax lien you ask? The answer is below… 

The dictionary defines a lien as: A legal claim against an asset which is used to secure a loan and which must be paid when the property is sold. The dictionary defines a tax lien as: A claim against assets filed by a taxing authority against property of a person who owes back taxes. 

One way a county government funds itself is the use of property taxes. If a person runs into financial difficulties and defaults on their taxes, the taxes are still due. And it will add up until the taxes are paid. Anyone can pay the back taxes. 

Another way the county can raise funds is to sell the defaulted tax debt.  The tax debt is sold as a TAX LIEN CERTIFICATE.  The county gets it's money and a person owns the debt or Tax Lien Certificate. 

If back taxes are $5000 and the County sells the TAX LIEN to an investor, the property owner now owes the taxes plus interest of 16% to 50% to the holder of the tax lien. The interest could go as high as 50%, depending on the state. When the property owner pays the investor the taxes, they are also paid on the interest accrued on the taxes. 

What happens if the Property Owner doesn't pay back the Tax Lien? If the property owner declares bankruptcy, the property goes into foreclosure. The Tax Lien Certificate on the property is in first position to be paid and given the first opportunity to acquire the property. Tax lien creditors are first, including: the bank, mortgage lender, etc. 

Michigan, starting at 15% and 50% high. Indiana starting at 10% and 25% high. Maryland starting at 12% and 24% high. Iowa 24%. Connecticut 18%. Florida 18%. Illinois 18%. Massachusetts 18%. New Hampshire 18%. New Jersey 18%. Wyoming 18%. Mississippi 17%. Arizona 16%. Nebraska 14%. New York 14%. Alabama 12%. Kentucky 12%. North Carolina 12%. North Dakota 12%. Rhode Island 12%. South Dakota 12%. Vermont 12%. West Virginia 12%. Missouri 10%. Montana 10%. Tennessee 10%. Colorado 9% above Federal Reserve rate. South Carolina 8% and Louisiana 5% and up.

Question: What is the traditional approach to financing a film?

Lang Elliott:  Usually its done through the major studio system.  They finance and distribute your film, they own it, and the producer rarely sees any net profits for his efforts due to the studios costs (i.e., "Coming To America" starring Eddie Murphy). Also, some independent producers finance through foreign and domestic pre-sales which are bankable, but again very costly and in most cases regrettable.

Question: What is the benefit of the tax lien approach?

Lang Elliott: Our Tax Lien Program enables the independent producers to seek equity investors outside of the entertainment industry by guaranteeing their money against losses.  Also, besides the budgeted costs, print and advertising costs can be guaranteed, thus giving the independent producer greater control over the costs of production and distribution worldwide, which allows the producer and his investors to realize 'Net Profits'.

Question: So risk is the clear difference between the two?

Lang Elliott: We take risk out of film and television investments.  As an example, by the producer putting his investors into our program, they are now in two businesses. Over the course of lets say four years, if the movie didn't even recoup $10.00 of revenues, our program would have secured the investor(s) and made them profits on top of it. And remember, that's with a film that didn't perform well.

Question: Could a film project involve both tax liens and traditional financing?

Lang Elliott: It depends.  Traditional financing from 'major' studios would most likely be too costly for the independent producer.  However, the studio itself could use our programs to insure themselves.  They produce 21-26 films per year at costs of $50 -- $200 million per picture, and their television division is another issue and added expense all together.

Question: Who does the accounting on tax liens? Third party auditors?

Lang Elliott: Once the tax lien is purchased by an individual from the municipality where the tax lien was bought, the municipality continues to work for the investor(s) to collect and account for their money.  Strategic Consultants International, Inc., (SCI) also tracks the property as well.

Question: Who is at the helm of SCI ?

Lang Elliott: I created the programs and Salvatore Amato, a former investment banker with Morgan Stanley, is a specialist in the acquisition of major hotels and real estate investments. We will also work with one of our shareholders, Mr. Ned Majors, Esq., who has been buying tax liens for over 20 years.

Question: Do you ever handle the investors money?

Lang Elliott: No, we have the investor make their checks payable directly to the municipality.  Also, when the municipality collects an investors money from a property that has been redeemed, it goes directly to that investor and its totally up to the investor to continue with the program.  Please note, that we do get a reasonable consulting fee for our work and  a portion of money for those properties that our clients obtains, meaning those that have not been redeemed.  However, in this case we do not get paid until the property is then sold and we handle that process for the client as well.

AMDR issued a press release last month that dealt with the company's new film financing approach.

*AMDR NEWS *

BERMUDA DUNES, Calif.--(BUSINESS WIRE)--Oct. 7, 2002-- AmeriDreamEntertainment Inc. (OTCBB:AMDR - News), a Coachella Valley, Calif.-based major motion picture, television production and distribution company, today announced that Strategic Consultants International Inc. (SCI), a wholly owned subsidiary of AmeriDreamEntertainment Inc., is offering a unique government guaranteed collateral financing program, providing entertainment industry producers with a bankable guarantee for independents, individuals and corporate investors. 

The program enables anyone who has an interest in financing motion pictures, television, cable or DVD productions to invest and at the same time be secured. This guarantee works similar to that of an added insurance policy without going through an insurance company. The difference between an insurance company guarantee and Strategic Consultant's program is the benefit of a government guarantee to assure performance. 

Lang Elliott, chairman, president and chief executive officer of AmeriDreamEntertainment Inc., developed this collateral financing program to assist clients and other third party investors who are seeking an alternative form of financing motion pictures, print and advertising costs, and television and cable production costs without going to the majors to obtain traditional financing at higher costs. 

"The new millennium is bringing the entertainment industry opportunities never before seen or imagined in the area of finance. Twenty-three years ago, people within our industry thought you were crazy if you talked positively about the new  mediums such as cable television or the home video industry," said Elliott. "If we didn't have these tremendous revenue-earning giants today, how could the majors or independents ever spend the large amounts of money that they are to produce and market films? The smallest budgeted major studio film today costs $50 million and that's before marketing and distribution costs."

He continued, "Strategic Consultants realizes that there will be a learning curve for the industry to understand how the plan works. However, it is predictable that securing production and distribution costs without pre-sales or cross-collateralizing rights to recoup dollars will be a welcome way for future production financing with tangible government guaranteed collateral that is rated by Standard and Poor's." 

About AmeriDreamEntertainment Inc.
(www.ameridreamentertainment.com) 

AmeriDreamEntertainment Inc. (OTCBB:AMDR - News), a Coachella Valley, Calif.-based major motion picture and television production and distribution company, was founded and incorporated in California. AmeriDreamEntertainment Inc. bases its future on public and industry financing. The AmeriDream companies will utilize its officers, directors and consultants to establish new production, co-production and distribution relationships throughout the world. 

AmeriDreamEntertainment Inc. is headquartered at 79811 "A" Country Club Dr., Bermuda Dunes, Calif. 92201; Tel: 760/345-2400; Fax: 760/345-0980 or  800/929-6147 for U.S. & Canada. 

This press release contains statements, which may constitute "forward-looking  statements" within the meaning of the Securities Act of l933 and the Securities  Exchange Act of l934, as amended by the Private Securities Litigation Reform Act of l995. Those statements include statements regarding the intent, belief or current expectations of AmeriDreamEntertainment Inc. and members of its  management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are based upon current expectations of management and actual results and outcomes may differ materially from those contained in such forward-looking statements in this press release. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include the ability of management to gain approvals from the board of directors of both companies as well as regulatory approvals, unforeseen claims in connection with the intellectual property rights in connection with AmeriDreamEntertainment Inc., fluctuation of operating results, the ability to compete successfully, the ability to revise forward-looking statements to reflect changed assumptions, and the occurrence of unanticipated events or changes to future operating results. 

Contact:  MarCom Associates, Kristin Gabriel, 323/650-0606 (Media/Press) or Janet Margolis, 323/650-0606 (Media/Press) or Market Pathways  Shannon T. Squyres, 949/955-1860 (Investor Relations).

AmeriDreamEntertainment has a proven management team with the Hollywood pedigree necessary to be successful, and they have the track record and focused direction to back it up. AmeriDream's Chairman and CEO is Lang Elliott, the founder of TriStar, and a respected Hollywood producer for over 30 years. AMDR has an outstanding catalog of video entertainment and an impressive production schedule for current and future projects. AmeriDream is focused on family-friendly productions.  AmeriDreamEntertainment is focused on family-friendly productions. Recent blockbuster hits like Lord of the Rings, Spy Kids II and Return to Neverland have sent motion picture companies, TV networks, and cable broadcasters scrambling for material that is appealing to both children and adults.  AmeriDreamEntertainment owns numerous entertainment properties that literally fill the bill for 'E For Everyone' entertainment.

* AmeriDream Projects & Distribution *

AmeriDream has numerous proprietary projects underway and in various stages of development.  The company is currently in pre-production on a major motion picture titled “DORF: U.S.M.C.”  “Dorf On Golf,” was rated by Box Office Magazine as #1 in video rentals and sales for 101 weeks.

“Pursuit” is the working title of this series in development that is targeted for the large audience currently involved with reality-based television shows. 

"The Power of Who Do" a family-oriented live-action adventure film. The main character is eight-year-old Meghan Fitzgerald.  The film follows her adventures when toy action figures come to life to save Meghan from the evil sorcerer Wizz Bane. 

"Stinkin' Badges" a live action comedy where a group of kids run afoul of the law and are given two choices: go to jail or join the Los Angeles Junior Police Academy.

AMDR sells its titles to networks, station groups, cable networks, television syndicators, and in the video and DVD markets worldwide.

AmeriDreamInternationalDistribution Inc., a wholly owned subsidiary, has an established supply chain and is in position to funnel its products to market as they are developed. AmeriDream intends to acquire properties produced by other independent producers and offer an alternative to traditional distribution.
 

* Selected Financial Highlights *

Fiscal Year End: March 31
Industry: Media/Entertainment
Transfer Agent: Atlas Stock Transfer Corporation
Outstanding Shares as of 05/15/2002 -- 4,200,000
Authorized Shares as of 07/09/2002 -- 100,000,000

For the complete 10Q filing of 08-13-02 on AMDR at the SEC Web site, click here
For all of AMDR's SEC filings on the SEC Web site since July, 2002, click here
 

* Links To Information On Tax Liens *

The following are links that  talk about tax liens and tax liens as investments:

Lien Law Online Authoritative, up-to-date guide to Mechanics Lien Law for entire USA.
www.lienlawonline.com

Ted Thomas Create Wealth with secure government tax certificates home study course
www.taxliencertificate.net

Tax Lien Investing Report How to buy tax lien certificates. 80 page report with instructions.
www.taxliensalecertificate.com

Investing in Government Issued Tax Lien Certificates 
www.taxresearch.com/
 

*For More Information Or To Contact AmeriDream Entertainment*

  AmeriDreamEntertainment, Inc. 

  79811 "A" Country Club Dr. 
  Bermuda Dunes, CA 92201 
  Phone: 760-345-2400 

  For additional information, e-mail kgabriel@marcomassoc.com 

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  AMDR has previously granted 340,000 restricted common shares to MP for performing ongoing financial consulting services. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.  Write or call MP for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934.  MP is not an investment advisor and this report is not investment advice.  This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement.  Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. MP and/or its affiliates, associates and employees from time Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. MP and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned.  Information contained herein may not be reproduced in whole or in part without the express written consent of Market Pathways Financial Relations Incorporated.