LAS VEGAS, Dec. 11 /PRNewswire-FirstCall/ -- American Southwest Music Distribution, Inc. (OTC BB: ASWD) announces contract with Universal as well as projected revenues for 2007. On January 25, 2006, American Southwest Music entered into the Domestic Distribution Agreement with Universal Records, a division of UMG Recordings, Inc. During the term of the Domestic Distribution Agreement, Universal is American's exclusive manufacturer and distributor, through every distribution channel of recorded music, of all master recordings and videos owned or controlled by American. Universal will also exclusively handle all of American's on-line sales during the term of the Domestic Distribution Agreement. For each separate title of music products released, American's management, along with Universal, will determine the applicable wholesale price per unit for each product. Below are the Projected Revenues from CD sales for the year 2007. 2007 Revenues from CD Sales $ 46,550,000 (Less: Distribution Fee) $ (9,310,000) (Less: Manufacturing Costs) $ (4,716,031) (Less: Discounts, Co-Op, POP) $ (931,000) (Less: Actual Returns) $ (4,655,000) (Less: Freight Costs/Bad Debt) $ (1,163,750) ------------- Net Revenues after CD Costs of Goods $ 25,774,219 Online Sales Revenues $ 970,200 ------------- Total Net Revenues All Sales $ 26,774,419 (Net Upfront Advance) $ (900,000) (Promotion & Marketing) $ (3,600,000) (Mechanical Royalties) $ (2,842,000) ------------- Gross Margin $ 19,402,419 ------------- (Universal's Share) $ (9,701,210) American's Share $ 9,701,210 American Southwest Music Distribution: ASWD (http://www.aswmd.com/) is a publicly traded company formed by music veterans David Michery and Robert Guillerman. The company has partnered with Universal Records; divisions of UMG Recordings Inc. to form a niche in the production marketing and distribution of fresh musical talent via traditional and nontraditional vehicles. The company is pleased to announce that their CEO David Michery has been featured on Market News First (http://www.mn1.com/), please visit the website for more information. Cautionary Statement: This news release 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, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although American Southwest Music Distribution, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included herein, the inclusion should not be regarded as a representation by American Southwest Music Distribution, Inc., or any other person that the objectives and plans of American Southwest Music Distribution, Inc. will be achieved. CONTACT: Ray Johnson, (866)-639-3900, , Website: http://www.aswmd.com/ DATASOURCE: American Southwest Music Distribution, Inc. CONTACT: Ray Johnson, (866)-639-3900, , Website: http://www.aswmd.com/

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