acquires 51% of amphead entertainment group

24 April 2006
Australian Stock Exchange Limited
Companies Announcements Office
4th Floor
20 Bridge Street
SYDNEY NSW 2000
Dear Sir,
ACQUIRES 51% OF AMPHEAD ENTERTAINMENT GROUP
Swish Group is delighted to announce that it has today entered into an agreement to acquire
51% of the business and assets of Amphead Entertainment Group, which operates Australia’s
largest independent wholesale online digital music and video content business combining
online retail, wholesale rights management and label publishing.
Amphead Entertainment, which has an exclusive agreement with U.S.A based The Orchard,
the world’s largest aggregator and marketer of independent music content, will greatly
enhance the Company’s production and content aggregation division. The new business, to
be called Swish Amphead, is expected to increase the Company’s revenues and earnings
significantly over the next two years and to be profitable from day one.
Amphead Entertainment, through its agreement with The Orchard, provides local online
retailers with access to an international catalogue of over 800,000 audio and video tracks.
The Company also provides world wide distribution services for Australian artists and labels
through The Orchard’s distribution agreements with major online retailers in 73 countries.
Amphead Entertainment currently provides approximately 30% of iTunes online music retail
catalogue and estimates that it accounts for up to 10% of total independent download music
purchases in Australia.
Amphead Entertainment has agreements with a significant number of major independent
labels and its catalogue is currently distributed through most major music online retailers
including iTunes, Telstra Bigpond, Destra, JB Hifi, Sanity and Telecom New Zealand.
Through its relationship with The Orchard, it also has the ability to distribute music through
other international online music distributors including eMusic, Sony, Wal-Mart, Yahoo Music
Unlimited, MTV, Virgin Digital and AOL Music Now
The acquisition involves an initial consideration of 3,000,000 fully paid ordinary shares in the
Swish Group, a cash component to be paid over the next 12 months and a performance
related component based on the performance of the Swish Amphead business over the next
two financial years.
The principals of Amphead Entertainment, Gary Mackenzie and Rick Butterworth, who have
extensive experience in the music and online music sales industries, will be joining Swish
Group as executives. All former employees of Amphead will also be joining Swish Amphead.
Swish Group Managing Director Cary Stynes said “I am pleased to announce the acquisition
of a controlling interest in Amphead Entertainment which has positioned itself extremely well
to take advantage of the significant growth that is taking place in the online music space both
through its existing relationships in Australia and New Zealand and through its exclusive
arrangement with the world’s largest aggregator and marketer of independent audio and
video content. While it is difficult to accurately assess the growth potential of such a business
in an industry that is expanding exponentially the Swish Amphead business is expected to
grow significantly in the short to medium term.”
Amphead Entertainment Managing Director Gary Mackenzie said “I am extremely excited
about the agreement with Swish Group as it provides Amphead with access to the
considerable resources and media networks of Swish Group as we continue to develop our
digital music business in the rapidly expanding digital download music market.”
If you require any further information please contact Cary Stynes.
Yours faithfully
CARY P STYNES
Managing Director
Contact Details
Melbourne (03) 9686 6640
Mobile 0412 111 821