Americana Publishing, Inc. Devloping Private Placement Memorandum To Fund Entertainment Subsidiary; Initial Funds Will Be Utilized To Develop a Movie Catalog for Americana Entertainment, Ltd.'s Video/DVD Distribution Division.

Americana Publishing, Inc. (BULLETIN BOARD: APBH) today said it is preparing a private placement memorandum to fund its recently established entertainment subsidiary, Americana Entertainment, Ltd. It is intended this subsidiary be spun off as a separate public company as a result of a dividend issue to existing Americana Publishing, Inc. shareholders sometime over the next 18 months.

The new entity will consist of a video/DVD distribution company and a movie production arm. Funds from the initial private placement will be used to develop a movie catalog in conjunction with both major and independent studios.

"We intend on packaging a classic movie series featuring stars such as John Wayne and Robert Mitchum, as well as current action/adventure stars, and distributing them through our well-established national retail network," said Americana Chairman and Chief Executive Officer George Lovato. "Our goal is to build this revenue stream as a foundation for the subsidiary first. It is intended we will put the same promotion, sales and marketing efforts behind these products as we have our audio books sales. Over time this will complement our ever-expanding audio book sales."

Lovato said the Company has had preliminary discussions with several studios concerning the rights to a variety of old movie classics and several popular current action/adventure series.

"One of our target markets is the long-haul trucker and truck stops -- one of our strongest points of distribution," said Lovato. "More than 60 percent of long-haul truckers have VCRs or DVD players on-board, and we have a keen understanding of the various types of entertainment that appeal to them. We're confident the classic movie series, and popular current action/adventure series, packaged in sets of three to five releases, will be an excellent seller.

"It's all about continuity," said Lovato. "Like our popular audio book series we want to develop a loyal video/DVD customer base that should translate into continuity of revenue for the Company."

Lovato said there was no specific timetable on the private placement but indicated they wanted to have the subsidiary up and running by the end of the third quarter.

Americana Publishing, Inc. is an up-and-coming leader in the nearly $2 billion audio books industry. The Company currently has approximately 450 book titles and should have well over 500 by year-end, which it sells through the Internet, retail stores, and libraries, as well as major truck-stop distributors. The Company also has a growing print book division and just launched a film production and distribution division, Americana Entertainment, Ltd.

ABOUT AMERICANA PUBLISHING, INC.

Americana Publishing, Inc. is a vertically integrated multimedia publishing company whose primary business is publishing and selling audio books, print books and electronic books in a variety of genres. Sales of its products are conducted through the Internet, as well as a distribution network of more than 35,000 retail stores, libraries and truck stops. According to the Audio Publishers Association (APA), annual sales of audio books are nearly $2 billion. Currently, 42 million Americans listen to audio books and 58 percent of that group listen to more than 2 per month. The median income of listeners is $54,900 while the median age of male listeners is 41.9 and female listeners is 44.2 years.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

Contact: George Lovato, Jr., 505-265-6121

CONTACT: George Lovato, Jr., +1-505-265-6121, for Americana Publishing