Imperia Entertainment Rescinds Nexxus One Finance Deal; Files SEC and FBI Complaints for Securities and Insurance Fraud

Imperia Entertainment Rescinds Nexxus One Finance Deal; Files SEC and FBI Complaints for Securities and Insurance Fraud

BEVERLY HILLS, Calif., Nov. 30 /PRNewswire-FirstCall/ -- Imperia Entertainment, Inc. (Pink Sheets: IPEI) announced today that it has rescinded its capitalization agreement with Nexxus One Capital Trust of Switzerland, A.G. (http://www.nexxusone.com/) and has filed a securities fraud complaint with the Securities Exchange Commission and forwarded a request for an FBI investigation to the Las Vegas Regional Office of the Federal Bureau of Investigation on the grounds of securities and insurance fraud against Nexxus One Capital Trust of Switzerland, A.G., Nexxus Cayman SPV, Ltd., Nexxus One Securities, Ltd. of Las Vegas Nevada. The company has succeeded in recovering approximately 300,000,000 shares of common stock associated with the deal, and will return that stock to its transfer agent for cancellation. "After receiving the closing documents, and a series of extensions and promises to perform on the part of Nexxus One that did not come to fruition, we have rescinded the $10 million capitalization agreement between the company and Nexxus and decided to take action in federal court to recover damages," said Kenneth Eade, Chairman. "Nexxus One Capital Trust of Switzerland, A.G. is a large institution based in Switzerland, so we are confident that, if we receive a judgment against it that it will be collectible," he added. "We are moving forward with our new business plan of combining film distribution of ours and other companies' film products with the production of our own," said Eade. The company is currently in the process of a private offering, selling units consisting of a debt security and equity in its film, "Never Submit," to fund its operations. This offering does not involve the sale of common stock.

The complaints state that, in January 2007, Nexxus One made an offer to Imperia to capitalize the company with a $10 million bond rated investment grade by Standard and Poors, Moody's or Fitch, in exchange for over 300 million shares of restricted company stock. The company accepted and, after a series of delays, the transaction closed in June 2007, with Nexxus delivering a $10 million note from Nexxus Cayman SPV, Ltd. After closing, the company contacted a finance broker to help the company monetize the bond. During that process it was discovered that the bond, which was actually a "capital protected promissory note" allegedly secured by a $300 million bond, was suspect, and the company began an investigation to determine the validity of the transaction.

The complaint further states that it took the company months to close the transaction, and even more months to receive a CUSIP number. The company delivered the stock to escrow for Nexxus One and delivered stock to Nexxus One Securities, Ltd.. in full performance of its part of the agreement, but Nexxus One never gave the company the information requested that was necessary to monetize the instrument. During the pendency of the transaction, which was originally supposed to close in February 2007, the company's stock price plummeted, and the company was forced to make offerings of common stock in order for the company to raise the capital it needed to survive. When the company's financial representative attempted to verify the insurance for the bond, he found that, out of all the insurance providers listed on the insurance guarantee, only one actually existed. When he attempted to verify the CUSIP number (653376AA1), he found that it was indeed a CUSIP number that was applied for, but there was no correct record of a financial instrument corresponding to that CUSIP number.

The complaint further states that, in August, the company gave notice of rescission of the bond transaction to Nexxus One, and Nexxus One requested the company to wait 30 days for Nexxus to perform, and to execute a non-disclosure agreement, and Nexxus One would deliver a proper bond and the information needed to monetize it. The company waited the thirty days and still nothing happened. Nexxus One again requested the company to delay rescission on November 2, 2007, offering alternative performance that also never occurred.

ABOUT IMPERIA ENTERTAINMENT

Imperia Entertainment, Inc. (http://www.imperiaentertainment.com/) is a company that has emerged as a player in the area of independent film production and distribution. The company engages in investing in and producing full-length feature films. Imperia's film properties include its feature film, "Say It In Russian" (http://www.sayitinrussianmovie.com/), starring Faye Dunaway, and "Never Submit," starring Corey Sevier, Ernie Hudson and star MMA fighters Ken Shamrock, Josh Koscheck, Michael McDonald, Mauricio Shogun Rua, and Nate Quarry , the award-winning "Autograph" television series, and "The New Three Stooges" cartoon series, a series of 156 cartoons and 41 live wraparound skits featuring The Three Stooges.

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Imperia Entertainment, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

First Call Analyst:
FCMN Contact:

Source: Imperia Entertainment, Inc.

CONTACT: Kenneth Eade of Imperia Entertainment, Inc., +1-310-275-0089,
info@imperiaentertainmentinc@yahoo.com

Web site: http://www.imperiaentertainment.com/
http://www.nexxusone.com/

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Profile: International Entertainment