HDS International Completes Good Gaming Merger and Provides Update

CHICAGO, IL / ACCESSWIRE / February 18, 2016 / HDS International Corp. and CMG Holdings Group, Inc. (OTC PINK: HDSI & OTCQB: CMGO): Glenn Laken, Chairman and CEO of HDS International Corp.'s ("HDSI") parent, CMG Holdings Group, Inc. ("CMGO"), announced today that the spin-out of Good Gaming is now complete. Mr. Laken said, "Time and effort have been put into moving Good Gaming into its own entity and that vision has now come to fruition. We are convinced this will result in far better recognition for Good Gaming and create the ability to access funding necessary to propel our eSports tournament system into a worldwide phenomenon. The financing to begin this process is in place and we will continue to raise additional funds to support the development of this brand."

As part of the repositioning of HDSI, HDSI's former CEO, Paul Rauner, has resigned. CMGO is appointing Vik Grover to the positions of CEO and Director. Vik Grover is a former Wall Street analyst and investment banker with 20 years' experience in telecommunications, media and technology ("TMT"). Grover commented: "As advisors and friends of the former company within HDSI, my team worked vigorously to obtain funding for growth. I was substantially disappointed in the outcome of financing programs put in place to enable former management to execute on their vision for the Emergency Management market. Together, we retained counsel to pursue claims against individuals and entities that made promises to fund the former company within HDSI and seek recovery for shareholders who were adversely impacted. As a result, after weeks of negotiations, we have agreed to a settlement with one of these parties, which has culminated in a new investment of $100,000 in a fixed price security, the elimination of roughly $75,000 in toxic debt, and a restructuring of the $25,000 remaining obligation in a fixed price security. I believe this settlement and investment shows how excited this group was about the future of our business. It is a great outcome for HDSI shareholders as it removes the overhang of litigation and dilution and provides additional runway for Good Gaming's relaunch."

Grover continued, "I have spent the past several months working to save HDSI and restore value for shareholders. The outcome of this effort has been a negotiated spin-out transaction of CMGO's Good Gaming business into its own public entity using HDSI as the vehicle. The tournament that Good Gaming ran in late 2014 was on a first-generation platform that was not fully-automated. Programming of the next-generation platform is underway and should be substantially complete by the end of February 2016, meaning it will be fully-automated, will have team competition functionality, and will be able to handle scale tournaments of up to 100,000 participants. It will also incorporate social networking functionality, transactional revenues for barter of players and in-game tools/weapons, and other value-added features as part of Good Gaming's patent-pending "Mercenary System". Our world-renowned online games publisher ally has confirmed that we have access to their entire selection of titles and affirmed their support for our business plan."

Grover continued, "We expect to launch tournaments within 30-45 days, after which time the frequency and size of the tournaments should continue to increase as we add new titles and new publishers to the mix. We are in the process of securing corporate sponsors for our games, which we expect to mitigate dilution for shareholders as we use partner funds to support prize pools. And finally, with automation of the platform comes the substantial potential of a B2B model, whereby we will white-label Good Gaming for myriad organizations, including real world gaming venues, sports-oriented restaurant chains, and other verticals. The sky is the limit for Good Gaming. The math for our model is overwhelmingly compelling. Just applying a 1%-5% penetration rate to the world's 205 million online gamers (growing an estimated 20%-30% per year), and applying monthly subscriptions, transactional revenues, and advertising to the P&L, the returns are potentially enormous. I believe the Company is well positioned to harness its first-mover advantage and become a substantially larger organization over the coming months and years."

Glenn Laken of CMGO commented: "I met Vik Grover this summer and was struck by his knowledge of the gaming business and his thoughts on promoting our tournament system. He has worked tirelessly to bring about this spin-out and helped with the raise necessary to make it happen. I am very excited about this next chapter in the Good Gaming saga, and am quite sure I've picked the right man to spearhead the project."

Separately, HDSI announces that it intends to appoint Barbara Laken and David Dorwart to the Company's Board of Directors.

Ms. Laken is a former teacher, with experience creating specialized formats for advanced placement and special needs programs, with emphasis on systems management and curriculum development. A published novelist and co-author of an optioned screenplay, Ms. Laken brings creative energy, extensive collaborative experience and proven proficiency in the development of original solutions to organizational challenges. She embraced the invitation to sit on the board of Good Gaming as another platform to exercise her visionary talents and professional experience saying, "I'm thrilled to participate in this new forum that combines competitive challenge, skill development and entertainment in a future forward industry."

Mr. Dorwart is the Co-Founder and Chairman of Assist Wireless, Inc., a provider of lifeline wireless services to tens of thousands of subscribers primarily in the Midwest. Dorwart brings more than 20 years of wireless and telecom experience having spent decades providing cash-strapped consumers the best in wireless and telephone services. He brings the innovative leadership, customer-centric solutions and years of effectively navigating the ins and outs of regulatory compliance.

About HDS International Corp.

HDS International Corp. (OTC Pink: HDSI) is in a definitive agreement to combine with CMG Holdings Group's majority-owned subsidiary Good Gaming, Inc. ("Good Gaming" - www.good-gaming.com). Good Gaming is a leading cash tournament gaming platform targeting the over 200 million eSports players and participants worldwide that want to compete at the high school or college level. Good Gaming recently confirmed its partnership with one of the world's leading games publishers and intends to launch a series of tournaments in 2016.

Forward-Looking Statements

Statements not historical in nature, are intended, and are hereby identified as, "forward-looking statements". Forward-looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect," and similar expressions. The Company cautions readers that forward-looking statements including, without limitation, those relating to future business prospects are subject to risks and uncertainties that could cause actual results to differ materially from projections, estimates or aspirations, due to factors such as those relating to economic, governmental, technological, and any risks and factors identified from time to time in the Company's reports filed with the SEC.

HDSI CONTACT INFORMATION

HDS International Corp.
Vik Grover
CEO
Good Gaming, Inc.
(708) 400-9050
corporate@good-gaming.com

SOURCE: HDS International Corp.

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