Bill O'Dowd serves as the Chairman/CEO of DPDM and as President of Dolphin Entertainment; so the two companies have a strong relationship and complement each other. The first feature film to be produced is 'Soul Surfer - The Bethany Hamilton Story', an inspirational true story about a well-known female teen surfer who lost her left arm in a shark attack and overcame the debilitating injury to become a professional surfer. Other films to follow will cover a wide range of genres, including musicals, romantic-comedies, and thrillers.

DPDM has about 54M shares of common stock outstanding on a fully diluted basis, with a high percentage owned by management, insiders, and committed investors – which was illustrated by the $700K private placement to provide funding for the Company's initial product launches and marketing campaigns. Currently, there are 48.6M shares outstanding, with 1.4M additional shares represented by a convertible note and 3.6M shares exercisable at $1.36 through outstanding warrants (which would provide about $5M in cash to DPDM if exercised).

The combination of using technology to ensure the safety of children online, providing unique content which is targeted to a younger audience, and developing social media networks for an underserved population will offer plenty of growth opportunities for DPDM in 2009 and beyond as the it represents the first to market company in this niche space, similar to what Facebook and MySpace have accomplished for the overall social networking space. However, this article at TechCrunch reveals that MySpace kicked off 90,000 registered sex offenders from its site over the past two years, many of which migrated to Facebook.

Online security for children is very important, with 85% of parents responding that their number one media concern has shifted from television to the Internet. Other statistics at the preceding PDF report link indicate that 32% of teens have been contacted by a stranger while online and 55% of youths age 12-17 in the U.S. use online social networking sites.

The business model is highly scalable as DPDM can launch branded and partnered social media websites in a matter of days with little incremental costs since the back-end administrative and technology infrastructure is already in place. The products are ready for market launch and scheduled to go live next week on April 6 and the company will target the U.S. media during the month of April in a marketing campaign.

Dolphin Secure costs just $60 per child per year or $5 a month with a target market that is large and could reach 1 million subscribers by capturing 2% of the U.S. and Canadian population which is age 6-15. One million subscribers would translate into $60M in revenue from Dolphin Secure alone, which is over 2X the Company's current market cap of about $27M. DPDM has a cash burn rate of less than $200,000 per month (excluding marketing costs) and only needs about 4,000 subscribers per month to reach cash flow break-even.

The management team has extensive experience in children's entertainment and the close relationship with Dolphin Entertainment provides content that will generate traffic immediately from younger audiences. Another major source of demand for the Company's products will be from parents who are looking to protect their children (for very little cost of just $5 per month) on the Internet while allowing them to access a secure web portal for interacting with their friends and enjoying popular content.