EXHIBIT 99.1 June 27, 2011 Dear Shareholders: As
you may know, we recently filed our annual financial report for 2010 (10-K)
and, subsequently, our financial report for the first quarter 2011 (10-Q). The
highlight of these reports is the generation of revenue by the Company from the
production of the first web series by the Company’s wholly-owned
division, Dolphin Digital Studios. As
we look ahead to the rest of 2011, and into 2012, we foresee steadily
increasing revenues, due to the ramp up in production of additional web series.
Management believes that the Company will achieve its stated goal of a
production pipeline of 6-8 web series every 12 months by the 4th quarter of 2011.
Production fees associated with the development and creation of these web
series should work to cover the Company’s operating expenses, while
back-end sales revenues will be achieved throughout 2012 upon the release of
the web series produced this year (and so on going forward). The first two web series the Company has produced, both in
conjunction with Warner Bros., “Aim High” (starring Jackson
Rathbone of “Twilight” and Aimee Teegarden of “Friday Night
Lights”) and “H+” (produced alongside Bryan Singer, director
of “X-Men,” “Superman Returns” and “The Usual
Suspects”), are each in post-production now. The Company expects to
announce release dates and distribution partners for each of these
best-in-class projects in the 3rd quarter. The Company has several exciting new web series in development,
all of which continue to align us with major strategic partners and top
creative talent. Management expects to announce the next of our web series
initiatives within the next few weeks, and believes that the Company is
emerging as a market leader in this exciting new medium. With the generation of revenue, the Company will continue the
work begun in 2010 to improve its balance sheet. While management has provided
loans to the Company, we have not had to sell any Common Stock to cover
operating expenses for two successive quarters and, based upon our business
plan, do not foresee the need to do so going forward. Furthermore, the Company
has eliminated all outside debt of the Company; that is, all debt except for
the loans provided by myself, as CEO, and by our other director, Michael
Espensen.  4




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Finally, the Company has worked hard to develop the group
functionality associated with our core product, Dolphin Secure. By requiring
easy-to-use fingerprint access to group websites, Dolphin Secure provides brand
owners and content creators the assurance of safe delivery of their online
environments to children, while allowing for the proper monetization of their
content investments through the elimination of piracy created by the sharing of
entry passwords. While all software requires continual upgrades and
improvements, management believes that the group functionality of Dolphin
Secure is market ready and should become recognized as the “next
level” in internet safety for our children. The Company is in constant,
active conversations with multiple online content owners, and expects to
announce the first significant online group partnership with Dolphin Secure
early in the 3rd
quarter. Management believes that the expansion of such partnerships will fuel
long-term growth for the Company. In
summary, we are very excited for the upcoming year. Our collective Company is
poised to enter a new phase in its history. Market development of Dolphin
Secure, and its group functionality, is now complete. The first web series from
Dolphin Digital Studios are poised to enter the market, and the development
slate is strong, and growing. All of us at Dolphin Digital Media thank you for
your continued faith and support in the Company, and we look forward to sharing
additional exciting news in the near future. /s/ William O’Dowd

William
O’Dowd 
CEO  5