Palladium Mini-Report May 26 2006

[Kevin]

Palladium Mini-Report

Just wanted to give you a short update in the state of affairs at Palladium Books.

The fan outpouring continues to be unbelievable. I knew Palladium had touched a lot of lives, but I never realized how profoundly. Fans insisted we set up a Pay Pal "donation" sight and they have been buying books and the "Megaverse United" print by the truckload. I honestly think that we have made sales to every country on the planet over the last 4-5 weeks --Croatia, Yugoslavia, Europe, Brazil, New Zealand, China . . . The fans are really pulling together to help save our bacon!

This has taken off a bit of the pressure, enabling us to start getting caught up on payments to Freelancers, advertising, accountant, attorney, send 7 books in for reprint, put money aside to cover the next printing for the next 3 new books, and pay all our monthly bills in April and May. The money seems to goes out as fast as it comes in, but at least we're paying off debt and making some inroads. Fan support is still strong and Alliance, ACD, Blackhawk and other distributors have been offering sales and picking up on more back stock orders. Everyone has been fantastic. Palladium still has a way to go, but the spirit of staff members and freelancers are starting to soar again, and we are feeling inspired and positive about the future.

Reacquiring the Robotech RPG license feels good! I made a formal offer last week, had a brief chat this week, and expect to get down to brass tacks in the next week or two. Excited about this prospect and feeling good about our chance. And we have a couple other things percolating behind the scenes.

Looking forward to Origins (coming up fas!) and Gen Con. We hope to chat with those of you who swing by the booth, sign autographs and have a nice time, so come on over.

Guardedly optimistic on all fronts. Now we have to start getting back to producing books, not just on-line specialty items like the recent T-shirts and Glasses.

Hope to get back to Madhaven on Tuesday. Dying to write Tome Grotesque.

Thanks for listening to my mutterings and murmurs. Enjoy the long weekend.

Kevin Siembieda