/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
MONTREAL, July 9 /CNW Telbec/ - Madacy Entertainment Income Fund
(TSX: MEG.UN) has been advised, through joint discussions with its largest
customer, Anderson Merchandisers, and their sole customer, a large US-based
retail chain, that the retailer intends to significantly reduce the amount of
recorded music product that they maintain in their chain stores throughout the
United States. Madacy has been advised that this reduction will impact all
recorded music product lines and is expected to result in the retailer
carrying a significantly reduced selection of the "value-oriented" product
which Madacy sells.
Madacy is currently in the process of assessing the severity of the
impact of this development on its business and will be having further
discussions with both Anderson and the retailer regarding the future status of
its various products. Anderson Merchandisers, through its recent purchase of
Handleman Company, is currently the exclusive distributor of recorded music to
this retailer's chain of stores. Madacy's management estimates that
approximately fifty percent of its 2007 net sales were for ultimate
distribution to this retailer.
Madacy is a leading developer, producer and marketer of budget and
mid-priced recorded music products in North America.
For further information:
For further information: Hillel Frankel, President, Madacy Entertainment
Income Fund, (514) 341-5600 x333