EXHIBIT 99.1

Financial Statements of Business Acquired:
Table of Contents

Page

1.

The Combined Companies of Televideo, Inc. and MGB Entertainment, Inc.

Report of Independent Accountants

F-1

Combined Balance Sheets as of December 31, 1999 and June 30, 2000 (unaudited)

F-2

Combined Statements of Operations for the year ended December 31, 1999 and for six months ended June 30, 2000 and 1999 (unaudited)

F-3

Combined Statements of Cash Flows for the year ended December 31, 1999 and for six months ended June 30, 2000 and 1999 (unaudited)

F-4

Notes to Financial Statements

F-5 - F-6

2.

Pro Forma Financial Information

Unaudited Pro Forma Combined Balance Sheet as of December 31, 1999 

F-7

Unaudited Pro Forma Combined Statement of Operations for the year ended December 31, 1999 

F-8

Notes to Unaudited Pro Forma Financial Statements 

F-9

Unaudited Pro Forma Combined Balance Sheet as of June 30, 2000

F-10

Unaudited Pro Forma Combined Statement of Operations for the six month period ended June 30, 2000

F-11

Notes to Unaudited Pro Forma Financial Statements

F-12

December 31,
1999

June 30, 2000
(unaudited)

Assets

Current assets

Cash

$             

$          253 

Accounts receivable-trade

17,899 
__________

31,630 
___________

Total current assets

17,899 

31,883 

Property and equipment

Furniture, fixtures and equipment

371,389 

372,289 

Less accumulated depreciation

(307,059)
__________

(319,159)
___________

Net property and equipment

64,330 

53,130 

Other asset - programming inventory

103,500 

Total Assets

$    82,229 

$    188,513 

Liabilities and Stockholders' Equity

Current liabilities

Trade payables

$      8,697 

$    198,974 

Current maturities of long-term debt

22,831 

22,831 

Line of credit

100,000 

100,000 

Loans from shareholders

141,022 
__________

33,190 
___________

Total current liabilities

272,550 

352,287 

Long-term debt

Notes payable

20,088 
__________

20,142 
___________

Total long-term debt

20,088 

20,142 

Stockholders' equity (deficit)

Common stock

100 

1,100 

Additional paid in capital

13,248 

13,248 

Retained earnings (deficit)

(223,757)
__________

(198,264)
___________

Total stockholders' equity

(210,409)
__________

(183,916)
___________

Total liabilities and stockholders' equity

$    82,229 

$    188,513 

Notes to financial statements form an integral part of this statement.

Year Ended
December 31,
1999
_____________

Six Month
Period Ended
June 30, 2000
(unaudited)
_____________

Six Month
Period Ended
June 30, 1999
(unaudited)
_____________

Revenue

$     47,157 

$    282,572 

$    46,973

Operating expenses

Administrative expenses

23,066 

157,327 

17,362

Salaries and wages

21,250 

87,652 

13,308

Depreciation

35,575 
__________

12,100 
___________

  
__________

Total expenses

79,891 
__________

257,079 
___________

30,670
__________

Income/ Loss from Operations

$    (32,734)

$     25,493 

$    16,303

Notes to financial statements form an integral part of this statement.

Year Ended
December 31,
1999
_____________

Six Month
Period Ended
June 30, 2000
(unaudited)
_____________

Six Month
Period Ended
June 30, 1999
(unaudited)
_____________

Net Income (Loss)

$     (32,734) 

$     25,493  

$    16,303  

Add (deduct) items not affecting cash flows:

Depreciation

35,575  

12,100  

1,850  

Changes in operating assets and liabilities

Receivables

1,007  

(13,731) 

(71,638) 

Trade Payables

(29,804) 

190,277  

(38,500) 

Other assets - Programming Inventory

-    
_____________

(103,500) 
_____________

_____________

Cash flows provided by (used in) operating activities

(25,956) 

110,639  

(91,985) 

Purchase of property and equipment

(92,860) 
_____________

(900) 
_____________

-    
_____________

Cash flow used in investing activities

(92,860) 

(900) 

-    

Proceeds from line of credit

100,000  

100,000  

Loans from shareholders

13,785  

(106,823) 

-    

Payments on long term debt

(24,390) 
_____________

(2,654) 
_____________

(37,111) 
_____________

Cash flows provided by (used in) financing

89,395  

(109,486) 

62,889  

Increase (decrease) in cash

(29,421) 

253  

(29,096) 

Beginning cash

29,421  

-0-  

29,421  

Ending cash

$           -0-  

$         253  

$         325  

Notes to financial statements form an integral part of this statement.

1.

Summary of Significant Accounting Policies

Nature of Operations

The Company generates substantially all of its revenue through the production of entertainment videos and management of entertainment acts primarily for customers of Spanish language entertainment.

Revenue

Revenue from entertainment videos is recognized when videos are broadcast. Revenue from management of entertainment acts is recognized when acts are performed.

Property and Equipment

Property and equipment are presented at cost. Depreciation of property and equipment is provided using the straight-line for financial reporting purposes at rates based on the following estimated useful lives:

Machinery and equipment

5 years

Transportation equipment

5 years

Furniture and fixtures

7 years

Income Taxes

The Company has elected with the Internal Revenue Service to be taxed under the provision of Subchapter S. The taxable income of the Company is therefore reported by the individual shareholders and any corresponding tax is the responsibility of the respective shareholder. Consequently, no provision for federal income taxes is presented on these financial statements.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Unaudited Interim Financial Statements

The unaudited interim combined financial statements as of June 30, 2000 and for the six months ended June 30, 1999 and 2000 have been prepared in accordance with generally accepted accounting principles for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. They do reflect all adjustments (consisting only of normal recurring entries), which, in the opinion of the Company's management, are necessary for a fair presentation of the results for the interim periods presented.

The results of operations for the six month period ended June 30, 2000, are not necessarily indicative of the results that may be expected for any other interim period or for the full year.

2.

Line of Credit

The Company has a line of credit provided by Texas State Bank - Harlingen. The balance at December 31, 1999 and June 30, 2000 is $100,000. The line bears interest at prime plus 1% (9.5% at December 31, 1999). The Line is secured by guarantees of the principle stockholders.

3.

Related Party Transactions

From time to time as economic circumstances require the stockholders have loaned cash to the business for the purpose of meeting current obligations. The Company generally repays the advances as cash becomes available. As of December 31, 1999 and June 30, 2000, the Company owed stockholders $141,022 and $33,190, respectively.

4.

Long-term Debt

The Company has a note payable to Texas State Bank - Harlingen secured by substantially all machinery and equipment. This note bears interest at 8.5% and matures on April 22, 2002. The note requires monthly payments of $1,897. The balance at December 31, 1999 is $40,677. The current maturities of this note (the principle scheduled for repayment within one year) are $20,123.

The Company also has a note payable to Ford Motor Credit Company secured by a vehicle. At December 31, 1999 the balance of the note is $2,242 and matures May 18, 2000.