REELTIME REMOVES CEO AND REDUCES AUTHORIZED SHARES

SEATTLE, WA – February 24, 2010 -- ReelTime Rentals, Inc., http://www.reeltime.com (PINKSHEETS: RLTR), announced today the Company has removed James C. Green as CEO of the Company and as Chairman of its Board, effective immediately. The agreement between Reeltime and Challenge Entertainment Corp. has been rescinded and shares issued to Green/CEC have been returned to the Company. The Board of Directors with the agreement of shareholders representing a majority of issued shares passed a resolution in furtherance of these aims for the reason that the board believed that the company’s interests were not being served because James Green and CEC had breached their responsibilities under the agreement.

Reeltime further announced that it has appointed Michael Gersh and Beverly Zaslow to the board of directors. A meeting of the shareholders will be scheduled at which these matters and others will be discussed and voted upon.

President Mark Felgenhauer stated, “I believed the Company was headed down the wrong path, so I canceled the issuance of the Green/CEC shares retroactively. I believed that Mr. Green’s actions caused the Company’s business to become endangered, so I acted in accordance with my fiduciary responsibility to the company and the shareholders. Green/CEC was in breach of its agreement so the agreement was canceled.”

 “The board believes that our business has tremendous upside potential and, therefore, by reducing the authorized shares and initiating a new business plan we will move toward maximizing shareholder value. We intend to get back to our roots in digital delivery of high quality video over the net, and intend to offer specialized content, long tail programming, and live streaming of important and popular events to the public. The board will now undertake to satisfy current liabilities and secure capital needed to pursue our corporate goals. This is the first necessary step toward bringing the company to full health and operational self-sufficiency,” said Felgenhauer.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, intended to be covered by the safe harbors created thereby. Investors are cautioned that forward-looking statements involve risks and uncertainties. Although ReelTime Rentals, Inc. believes the assumptions underlying forward-looking statements contained herein are reasonable, any assumption could be inaccurate, therefore there is no assurance that forward-looking statements included herein will prove to be accurate, and inclusion herein should not be regarded as representation by ReelTime Rentals or other persons that objectives and plans of ReelTime Rentals, Inc., will be achieved.

CONTACT:

Michael Gersh  michael@reeltime.com


Online on PR Log

Response to the CEO

Last night the peripatetic CEO made another post to his blog apologizing for his lack of action and scolding shareholders for criticizing him - again. I formulated a response to him that I was about to post on Investor's Hub, but have decided to post it here instead.

Interesting blog post from the CEO. So now we are in the broadcasting business? Who knew? And the Olympics too? I can't wait to see what kind of Olympics deal our fearless leader is making for us. I guess he will outbid the networks for reruns, or something. He really must think we are stupid - not even his lies are well thought out. At least he confesses to being confused in his post.

Complaining about posts here while disabling comments on the blog is about as foolish as you can get. It seems that he is encouraging us to post our disappointment here, since he refuses to provide another venue, one that he could control.

One big question for you Mr. CEO - how can we believe that you are working on a website when your technical staff can not even get a single graphic image work on the so-called website? And while we are at it, can't you afford another phone number? Using your Canadian residential phone number for corporate communication is another sign of a crack commercial enterprise.

Hoping for the best while scolding and threatening longs (James - longs are people who own RLTR stock) is no formula for success. Lies about what you are doing will not make anything happen. Nobody I know wants to see the company fail. It is the judgement of many of us that the company needs professional management to succeed. What are you waiting for? Your alternative is on the table. Resign.

Nasty business we have here. Our CEO evidently intended to take the company without bothering to pay for it. He hoped to sell or hypothecate shares to fulfill his two million dollar commitment to the company. When the mere fact of his eminence failed to create shareholder value (imagine that!) his plan fell through. But then we enter the bizarro world, where he hunkers down in Canada and hopes, or pretends, that everything is going along fine and according to plan.

All this would be fine comedy except for one thing. The clock continues to tick. The stock may be delisted any day. Then we will truly have nothing. Not even hope.