Here is a short outline of the company «Odyssey» and the Ukrainian license market. Let us supply you with some facts of Ukraine as a sovereign state and the company «Odyssey».We are pleased to inform you that «Odyssey» was founded in February, 2001. Our main sphere of activity is licensing, production and distribution of music, PC games, books, greeting cards and others.

Odyssey consists of Odyssey Distribution, Label «Planet of Hits» (Record Company), «Jam Games Net» (Games Developing Company), Odyssey-Disc (Pressing Factory based in Odessa), «MediaCards Publishing (Greeting cards, books, Audiobooks Department). Odyssey is a Licensee and one of the biggest distributors in Ukraine. More than 150 employees work in the company. It's annual turnover is more than 6 000 000 dollars.

The population of Ukraine is more than 48 million. And though the average income of Ukrainians is rather low, the middle class is being established and the rates of the process has been speeded up by the «Orange Revolution». Hence, we would call the Ukrainian market from the point of buying capacity — a «sleeping» one. But we hope that in the nearest future it will develop it's potential. There are five cities with the population exceeding one million.

Company «Odyssey» has more than 100 dealers from all 26 regional cities and towns: Vinica, Dnepropetrovsk, Donetzk, Evpatoriya, Zaporozhie, Izmail, Ivano-Frankovsk, Kalush, Kiev, Kirovograd, Krivoy Rog, Lugansk, Lutzk, Lvov, Mariupol, Melitopol, Mukachevo, Nikolaev, Odessa, Poltava, Rovno, Saki, Sevastopol, Simferopol, Sumi, Ternopol, Kharkov, Kherson, Hmelnickiy, Chernigov, Chernovci, Chervonograd, Uzhgorod, Feodosiya, Yalta. Also Odyssey has it's own distribution through Megastore Networks. Monthly we sell more than 200 000 copies of CDs, CD Roms, Video CDs and DVDs.

It also should be mentioned that the Ukrainian audio and video market has become interesting for the European and US companies due to the efforts of the legislative and executive bodies of Ukraine in decreasing of counterfeit audio and video production in the country. In accordance with the Law «On Distribution of Audio and Video Products and Soundtracks» of 23 March 2000, each polygraphic packaging of a license copy of audiovisual product or soundtrack is marked by one control mark. The indication of the serial number and the title of a program give the controlling bodies and license holders a possibility to trace any illegal use of the control mark. A company, signing a contract with a licensee for the production and distribution of audio and video products in Ukraine, receives a Rent Certificate from the Ministry of Culture. A Ukrainian company can get the number of control marks for a certain music programs equal to the quantity mentioned in the Schedule which is integral part of an Agreement.

We have close relations with more than 20 companies from Europe, UK (Label Deals, 1st Option Deals). We have deals with Warner International, EDEL records, Southern Fried, Kontor Records, Motivo Productions, Oxyd Records, ToCo International, Ministry Of Sound UK and Germany, Yellow Productions and many more. Odyssey has also a lot of Ukrainian National Awards, Platinum and Gold Disks.

Since 2002 we are constantly attending all essential exhibitions like Midem &Popkomm. After achieving considerable progress in the sphere of licensing, production and distributing of music programs, especially of European repertoire, the management of the company has prepared a long term program of the label «Jam Games Net» development. The basic directions of it have become: licensing, production and distribution of CD Roms, as well as games production by «Jam Games Net».

We are undertaking now the same steps in spreading the information among our present and prospective partners from Europe and USA that the state of Ukraine is a sovereign one: the Ukrainian Parliament adopts the Laws, which «work» on the territory of the country; the goods can't cross the borders of the country without customs' taxes being paid; the Ukrainian control mark is legal only in the territory of Ukraine, hence, re-export of license audio-visual products has no sense because the pirate products are much cheaper; etc. This information is very important for the European labels in their decision to be really represented in certain territory (and not to grant the right for CIS countries). The Ukrainian production and distributing company can feel and handle the situation in Ukrainian market much better than the company from any other CIS country. One of the practical proofs of this statement is the fact of the development of Odyssey games production. In September, 2005 we have released our first product, done by the team of 20 specialists — the quest «Cossaccs», based on a very popular cartoon films. The sales reached 100 000 copies (this is a category AA for CIS countries). After this success we have released several games based on a popular TV show series and the results were also impressive.

Last but not the least is the problem of a «piracy» in the Ukrainian market. This is a worldwide problem and it's known that civilized market means the less percentage of counterfeit products, and this isn't only in the sphere of digital carriers. Thus, if we declare: «there is practically no „piracy“ in Ukraine, start working with us without fear», we would be at least not serious. But company «Odyssey» is quite serious and what's more — the hardworking one! Our practical experience of the last 4 years in CD, CD Rom and DVD market witnesses that if we have more license products, especially released simultaneously with the World or European release, the less counterfeit products is spreading in our local market.

Estimating the movement of a license sector in the Russian and Ukrainian markets we would state that the results in Ukraine within the last 4-5 years are much better and the «pirate» sector is decreasing considerably quicker in comparison with Russia, where license market started in 1995. Some of the reasons of the fact are:

 - Ukrainian territory is more compact.
 - In 2000 the Ukrainian government introduced the federal control mark (in Russia — different types of Moscow control marks, regional control marks)
 - The Governmental policy against counterfeit products has become more active as one of important steps towards European Council.

Participation in Games Convention, which took place in Leipzig in August, 2005 and meeting with European publishers confirmed that the Ukrainian CD Rom market is considered to be fast growing.

In the end of 2006 a new pressing factory, «Odyssey Disk», supplied with the latest equipment, started its work. The pressing factory, situated in Odessa became very useful in optimizing of all the company activities.

We will eagerly supply you with any other information you might be interested in, that isn't included in this short review.