What's New at Matrixx Entertainment

What's New at MEC Update as of March 2006

Dear Friends & Associates:

FIAT EMPIRE
We are proud to be involved with the production of FIAT EMPIRE - a Closer Look at the Federal Reserve.
This important documentary, is inspired by the well-known book, The Creature From Jekyl Island by G. Edward Griffin. Produced by William L. Van Alen, Jr., the feature-length documentary is a co-production between Matrixx Productions and Cornerstone Entertainment and features interviews by, not only G. Edward Griffin, but Congressman Ron Paul (R-Texas) and MOVIEGUIDE Founder, Ted Baehr. The film is written and directed by James Jaeger, with narration by Kris Chandler. Associate producers are Ted Pollard, author and former Commissioner of Radnor Twonship and James E. Ewart, well-known author of MONEY.

You can screen an early promo version of FIAT EMPIRE by going to:
http://www.mecfilms.com/mid/movies/fiat1.wmv (56K dia-up)
http://www.mecfilms.com/mid/movies/fiat2.wmv (360K broadband)
http://www.mecfilms.com/mid/movies/fiat3.wmv (750K broadband)

THE PICKUP
The company has re-edited THE PICKUP, a 30-minute romatic comedy directed by James Jaeger.
If you would like to screen it, go to:
http://www.mecfilms.com/mid/movies/pickup1.wmv (56K dia-up)
http://www.mecfilms.com/mid/movies/pickup2.wmv (360K broadband)
http://www.mecfilms.com/mid/movies/pickup3.wmv (750K broadband)

Non-Linear Editing Studios
Post Digital Group has for the 4th time upgraded its hardware and software in Studio B to Premiere Pro 2.0, using the Matrox RT.X10 capture card on a state-of-the-art terabyte system using the Pentium 3 GHz, dual-core processor on the Intel D955XKK PCI-Express motherboard. The system has extensive real-time transitions, very good title capabilities, special FX and full color, density and gamma control. Display is on 3 simultaneous VGA monitors using the Matrox triple-head Parhelia APVe video card with simultaneously outputs to a 52-inch high definition TV and an NTSC monitor with 6:1 suround sound.
With Premiere you get full digital audio sweetening/mixdown and ADR capabilities on-the-fly and high definition editing. The response time and action of Pro 2.0 is every bit as good as Final Cut Pro and AVID. Studio B is located at our Main Line offices and available to clients at an introductory rate.

To book time or for more information, click here.

Other Production News
Previous productions have included:

SANDY SAUNDERSON. 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.

COMETS. 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)

BEACH POCKETS. 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

CHRISTIAN'S NIGHT LIVE. 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.

THE NOAH FUND. 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

COMEDY SHOWCASE. 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.

MAIN LINE ANTIQUES CLUB. 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.

THE MAKING OF SNAPSHOT BLUES. 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.

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.

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.

Development
An 8th draft of the TESLA story has been written by James Jaeger. James contacted Mel Gibson's company, ICON PRODUCTIONS, and they are 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.

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
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.

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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