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MIAMI, FL -- (Marketwire) -- 05/17/12 -- CMG Holdings Group, Inc. (CMGO) (OTCQB: CMGO) (PINKSHEETS: CMGO) www.cmgholdingsinc.com, a full service marketing communications holding company operating across the sectors of digital media, alternative advertising, social media, event marketing and commercial rights, today is providing the following updates regarding the company's financials, the corporate spin-off, the elimination of corporate debt, the expansion to align its business around growth opportunities.

FINANCIAL HIGHLIGHT SUMMARY FROM 2011 ANNUAL REPORT

•Revenues of $7,231,069 for fiscal year ended December 31, 2011 compared to revenues of $4,972,093 for fiscal year ended December 31, 2010. •Revenue increase of 45% for fiscal year ended December 31, 2011 compared to fiscal year ended December 31, 2010. •Cost of sales of revenues of $5,085,957 in fiscal year ended December 31, 2011 compared to cost of sales of revenues of $2,702,047 in fiscal year ended December 31, 2010. •Operating expenses of $4,994,199 in fiscal year ended December 31, 2011 compared to operating expenses of $5,674,094 in fiscal year ended December 31, 2010. •Net Loss from Operations of $6,722,609 in fiscal year ended December 31, 2011 compared to net loss from operations of $3,702,381 in fiscal year ended December 31, 2010. •Excluding the impairment of inventory expenses, Net Loss from Operations of $3,482,107 in fiscal year ended December 31, 2011 compared to net loss from operations of $3,702,381 in fiscal year ended December 31, 2010. •Net Loss $7,787,877 in fiscal year ended December 31, 2011 compared to net loss of $4,191,682 in fiscal year ended December 31, 2010.

"Fiscal 2011 was a transformative year for CMG Holdings Group, Inc." said Jim Ennis, the Company's Chief Operating Officer. "Through the execution of organic growth initiatives, our revenues for fiscal year ended December 31, 2011 increased by $2,258,976 or 45% compared to the same period for prior year. Our consolidated expenses from operations decreased for fiscal year ended December 31, 2011 by $679,895 or 13% compared to the same period for prior year. Excluding the impairment of inventory expenses, our net loss from operations decreased by $220,274 in our fiscal year ended December 31, 2011 compared to the same period for prior year."

"During Fiscal 2012 we plan to further expand our digital media offering and as we progress through the remainder of this year, the benefits from this expansion strategy should become more evident, particularly those involving initial startup expenses for sales and services expansion that began during the third and fourth quarter of fiscal 2012. In addition, as our digital media platform gains further traction, we anticipate an additional revenue streams to reflect a growing proportion of digital media budgets from corporate clients that will enhance the capabilities of XA, The Experiential Agency, Inc. (XA) www.experientialagency.com."

Earlier this year, the company also announced plans to further align its business around the explosive growth categories of Digital Media and Digital Marketing solutions. "We are also moving forward with acquisition and investment plans in order to capitalize on Digital Media and Digital Marketing, two growing market areas" said Jim Ennis. "In Digital Media, our company plans to expand in content authoring solutions, enabling customers to create, distribute and monetize digital content. In Digital Marketing, our company intends to be the leader in solutions to manage and optimize digital marketing and advertising. The multi-billion-dollar digital media sector is poised to grow at an incredible pace in the next decade as technological advances make digital media and marketing practical and affordable platforms for large and small businesses."