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Premier Exhibitions' CEO Discusses F4Q12 Results - Earnings Call Transcript

In addition we continue to pursue new licensing and merchandising opportunities to secure new distribution channels for our Titanic merchandise and intellectual property. Since yearend our intellectual property from Expedition 2010 has been featured in the National Geographic cover story and a History Channel documentary about the groundbreaking scientific work performed on the 2010 expedition. While we didn't recover any artifacts on the most recent expedition, we did secure some amazing intellectual property that we are now introducing into our exhibitions. Our first installation was our New Atlanta Titanic exhibition and we intend to roll out more of this new exhibitory over the next six months.

We've also been working with a group at the Michigan State University to provide groundbreaking research on the Titanic Mapping Project and you can expect to hear more about this initiative in the coming months. As you might expect our e-commerce website offering Titanic theme merchandise has been showing strong results. Coupled with other merchandise related initiatives we have enjoyed an increase in merchandise revenue around the anniversary and sales continue to be strong. We have also seen a significant increase in our exhibition merchandise sales as our per cap sales increased 30% year over year in the fourth quarter.

Per cap sales refers to the amount of merchandise sold on average to everyone who attends the exhibitions. Moving forward our recent acquisition of the Arts & Exhibitions International assets has not only diversified our exhibition portfolio, but also added experienced professional talent and provided access to new content. The combination of the Premier and AEI businesses has positioned the company as an industry leader in the development and exhibition of unique content for education, entertainment and brand extension. Our focus is to establish Premier and its AEI subsidiary as the leading source for content owners to expand their brands through joint ventures and other licensing arrangements that provide the appropriate risk reward profile to generate profitable revenue growth.

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