AMC Forms American Southwest Music Distribution

AMC Forms American Southwest Music Distribution
Subsidiary Projected to Add an Estimated $30M in Gross Sales 


SANTA FE SPRINGS, Calif., May 12  /PRNewswire-FirstCall/ -- AMC American Music
Corp. (AMCT.PK) announces the formation of American Southwest Music
Distribution, Inc., a wholly owned subsidiary.  Through American Southwest, AMC
will distribute prerecorded music and DVD's for various independent record
companies and motion picture production companies seeking worldwide retail
distribution.  AMC's management projects that American Southwest will add an
additional $30 million in gross sales with estimated pre-tax earnings of
approximately $5 million, in the first twelve months of operations.

American Southwest will operate and distribute from their facility in Houston,
Texas, and AMC's headquarters in Santa Fe Springs, California.  AMC will
transfer operating assets acquired in September 2003 from Southwest Wholesale
Distribution to American Southwest to begin operations.  American Southwest
plans to hire several experienced former employees of Southwest Wholesale in
Houston.

Through distribution contracts, American Southwest will become the worldwide
exclusive distributor for various independent labels.  American Southwest will
sell products, throughout the United States and Canada, using its own sales
force and sub-distributors, and will have the right to license products to
foreign sub-distributors.  AMC will seek the right, under each contract, to
move any successful album or artist from American Southwest's distribution to
distribution by AMC through Alternative Distribution Alliance, (ADA).  ADA is a
division of the Warner Music Group, a subsidiary of AOL/Time Warner.

David Michery, President and CEO of AMC, commented, "This is an important step
in meeting the objectives of our business plan.  By adding the ability to
distribute our products through both American Southwest and ADA, we gain a
distinct advantage over other independent record companies.  American
Southwest's direct to retail distribution capabilities creates additional
retail distribution channels for the Company and allows us to distribute a
wider range of entertainment products, such as motion picture DVD's.  This fits
into our plans to become a full scale media entertainment company.

"As we further integrate the operations of American Southwest and AMC's ADA
distribution, AMC will begin using our ADA distribution relationship for
certain "front line" products.  Management believes the "front line" product is
best served by the distribution leverage provided by the ADA system. American
Southwest provides us the opportunity to identify successful new artists,
production companies and label with very little risk to AMC.  AMC will also
have the flexibility of distributing catalog albums and products through the
less expensive distribution channel available to it through American
Southwest."

About AMC American Music Corporation

AMC American Music Corporation 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 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.

  For more information please visit http://www.amcamericanmusiccorp.com/.

  Safe Harbor


The Private Securities Litigation Reform Act of 1995 may provide a "safe
harbor" for forward-looking statements.  Certain information included in this
press release contains statements that are forward-looking, such as statements
related to the future anticipated direction of the industry, plans for future
expansion, various business development activities, planned capital
expenditures, future funding sources, anticipated sales growth, and potential
contracts.  Such forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results in the future
and, accordingly, such results may differ from those expressed in any
forward-looking statements made by, or on behalf of the Company.  These risks
and uncertainties include, but are not limited to, those relating to
development and expansion activities, dependence on existing management,
financing activities, and domestic and global economic conditions. 

DATASOURCE: AMC American Music Corporation



CONTACT:  David Zazoff, FOCUS Partners LLC, [phone], for AMC

American Music Corporation



Web site:  http://www.amcamericanmusiccorp.com/ 

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