EXHIBIT 99.1
[PLAYBOY LOGO]
Media Contact: Investor Contact:
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Jay Jay Nesheim Martha Lindeman
212-261-4933 312-373-2430
jayjayn@playboy.com marthal@playboy.com
PLAYBOY ACQUIRES CLUB JENNA INC.
CHICAGO, June 22, 2006 - Playboy Enterprises Inc. (PEI) (NYSE:PLA) today
announced the acquisition of Club Jenna Inc. (CJI), a multi-media adult
entertainment business founded by Jenna Jameson. The acquisition adds a premier
and profitable brand to Playboy's Entertainment Group business, with assets
including a successful film production business, a library of video content, a
network of web sites and a DVD retail distribution deal.
Christie Hefner, chairman and chief executive officer of PEI, said: "As
a best-selling author, a personality whose name is among the most-searched on
the Internet and the founder of a profitable business, Jenna is a uniquely
successful talent. CJI is a very attractive business, which we believe will be
both financially accretive and strategically complementary as we continue to
execute our multi-platform strategy. This acquisition will allow us to diversify
our content offerings in the domestic TV business, while, on the online side,
also expanding their existing properties through our network of sites."
"In an increasingly complex and competitive media environment, we know
that the Club Jenna brand resonates with consumers. We are looking forward to
working with Jenna and her husband, CJI President Jay Grdina, as they help
further accelerate the growth of our digital media businesses," Hefner said.
Both Jameson and Grdina have signed personal service agreements with
PEI in conjunction with the acquisition.
"This move is very exciting for us," said Jameson. "Jay and I are
pleased to be part of the Playboy family and look forward to the potential that
this brings to the table."
"With the resources now available to us, we can bring Club Jenna to a
level unprecedented in sophisticated entertainment," said Grdina.
Terms of the deal were not disclosed.
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About Playboy Enterprises, Inc.
Playboy Enterprises, Inc. (NYSE: PLA, PLA.A) is a brand-driven, international
multimedia entertainment company that publishes editions of Playboy magazine
around the world; operates Playboy and Spice television networks and distributes
programming globally via DVD and a network of websites including Playboy.com, a
leading men's lifestyle and entertainment website; and licenses the Playboy and
Spice trademarks internationally for a range of consumer products and services.
FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements," including statements in
Business and Management's Discussion and Analysis of Financial Condition and
Results of Operations, as to expectations, beliefs, plans, objectives and future
financial performance, and assumptions underlying or concerning the foregoing.
We use words such as "may," "will," "would," "could," "should," "believes,"
"estimates," "projects," "potential," "expects," "plans," "anticipates,"
"intends," "continues" and other similar terminology. These forward-looking
statements involve known and unknown risks, uncertainties and other factors,
which could cause our actual results, performance or outcomes to differ
materially from those expressed or implied in the forward-looking statements.
The following are some of the important factors that could cause our actual
results, performance or outcomes to differ materially from those discussed in
the forward-looking statements:
1) Foreign, national, state and local government regulation, actions or
initiatives, including:
a) attempts to limit or otherwise regulate the sale, distribution
or transmission of adult-oriented materials, including print,
television, video, and online materials,
b) limitations on the advertisement of tobacco, alcohol and other
products which are important sources of advertising revenue
for us, or
c) substantive changes in postal regulations or rates which could
increase our postage and distribution costs;
2) Risks associated with our foreign operations, including market acceptance
and demand for our products and the products of our licensees;
3) Our ability to manage the risk associated with our exposure to foreign
currency exchange rate fluctuations;
4) Changes in general economic conditions, consumer spending habits, viewing
patterns, fashion trends or the retail sales environment which, in each
case, could reduce demand for our programming and products and impact our
advertising revenues;
5) Our ability to protect our trademarks, copyrights and other intellectual
property;
6) Risks as a distributor of media content, including our becoming subject to
claims for defamation, invasion of privacy, negligence, copyright, patent
or trademark infringement, and other claims based on the nature and
content of the materials we distribute;
7) The risk our outstanding litigation could result in settlements or
judgments which are material to us;
8) Dilution from any potential issuance of common or convertible preferred
stock or convertible debt in connection with financings or acquisition
activities;
9) Competition for advertisers from other publications, media or online
providers or any decrease in spending by advertisers, either generally or
with respect to the adult male market;
10) Competition in the television, men's magazine, Internet and product
licensing markets;
11) Attempts by consumers or private advocacy groups to exclude our
programming or other products from distribution;
12) Our television, Internet and wireless businesses' reliance on third
parties for technology and distribution, and any changes in that
technology and/or unforeseen delays in its implementation which might
affect our plans and assumptions;
13) Risks associated with losing access to transponders and competition for
transponders and channel space;
14) Failure to maintain our agreements with multiple system operators and
direct-to-home operators on favorable terms, as well as any decline in our
access to, and acceptance by, direct-to-home and/or cable systems and the
possible resulting deterioration in the terms, cancellation of fee
arrangements or pressure on splits with operators of these systems;
15) Risks that we may not realize the expected increased sales and profits and
other benefits from acquisitions;
16) Any charges or costs we incur in connection with restructuring measures we
may take in the future;
17) Risks associated with the financial condition of Claxson Interactive
Group, Inc., our Playboy TV-Latin America, LLC, joint venture partner;
18) Increases in paper, printing or postage costs;
19) Risks associated with revenue guarantees under our cable distribution
agreements;
20) Effects of the national consolidation of the single-copy magazine
distribution system; and
21) Risks associated with the viability of our primarily subscription- and
e-commerce-based Internet model.