Global Entertainment Holdings Inc

Global Entertainment Holdings Inc is in the business of producing and marketing low-budget, genre films with recognizable, name talent, operating through its wholly owned subsidiaries Global Universal Entertainment ("GUE") and Global Universal Film Group ("GUFG"), as well as its 30% owned, Canadian affiliate, Global Universal Pictures ("GUP"). The company's management believes investment risk can be significantly reduced by utilizing Canadian, U.S. and other major countries Governmental and Territorial tax incentives to cover up to 40%, or more, of each film's budget. Additional coverage of approximately 25%, or more, of a film's budget can be derived from distributor financing, or pre-selling either foreign or U.S. rights to a film. The balance of each film's budgeted cost is obtained from private investment of debt, equity or "gap" financing, or a combination of such items. Section 181 of the U.S. Tax Code, recently re-enacted by President Obama, gives wealthy tax payers a 100% write off on their investment in U.S. produced films. This can help GUE because its method of financing film production entails utilization of state tax incentives, pre-sales from distributors and a benefit of up to 34%, or more, from the Section 181 benefit, which could finance the entire film budget. Management intends to retain revenues generated from a significant ongoing, equity percentage of each film to provide cash flow for operating expenses and to maximize long-term growth for the Company and its shareholders. The company is committed to the development and production of commercially saleable feature-length motion pictures having budgets of up to $5 million, but which have enduring value in all media. It anticipates not only producing motion pictures, but also acquiring the film asset to build a library and capitalizing on other marketing opportunities associated with the motion picture. The company currently does not have sufficient capital to independently finance its own productions and relies on outside sources of financing, coupled with tax incentives and distributor involvement for all of its film production activities.