Seven Arts Pictures plc

September 12, 2008 03:38 ET

Certification of $9 million of refundable Louisiana Film Infrastructure Tax Credits


          Seven Arts Pictures Receives Certification of $9 million of refundable Louisiana Film
          Infrastructure Tax Credits-Net proceeds to Seven Arts will be approximately $2,750,000

Seven Arts Pictures plc (Seven Arts) (PLUS:SAPP) (OTCBB:SAPXF) announced that the State of Louisiana  has
certified approximately $9 million of expenditures for the 40% Louisiana Film Infrastructure Tax Credits.
The  expenditures certified include Seven Arts cost of acquiring and renovating facilities,  purchase  of
production  and post equipment, and film distribution expenditures. The certification was received  prior
to  the  June 30th 2008 year end. The company expects to finance these credits before December 31st  2008
and  will realize proceeds from the discount or sale of these credits of approximately $2.75 million. The
company  further  announced  that an additional $4.5 million of additional  expenditures  for  financing,
distribution, and post production expenditures are pending certification.

Peter  Hoffman,  CEO  of Seven Arts commented on the transaction, "We are delighted  that  the  State  of
Louisiana has certified over $9,000,000 of post production related costs and we will announce shortly our
plan to utilize the funds to reduce our post-production expenses on upcoming movies such as Night of  the
Demons  being filmed in Louisiana. The initial tax credits granted to Seven Arts are expected to generate
$2,750,000  in  cash  before the end of 2008 and this will provide more than enough  financing  for  post
production capital expenditures and expenses for our new movies."

The  state  of  Louisiana  has experienced explosive growth in film production since  the  approving  tax
credits for film production. Over $350 million was spent in 2005, up from $7,000,000 in 2002 as a  result
of the tax benefits.

The Directors of the issuer accept responsibility for this announcement.

About Seven Arts
Seven  Arts Pictures plc ("SAP," "7 Arts" or the "Company") was founded in 2002 as an independent  motion
picture  production  and  distribution  company  engaged  in  the  development,  acquisition,  financing,
production,  and  licensing of theatrical motion pictures for exhibition in domestic  (i.e.,  the  United
States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of
media, including home video and pay and free television.

Cautionary Information Regarding Forward-Looking Statements:
Included in this news release and other information that we make publicly available from time to time are
forward-looking  management comments and other statements that reflect management's current  outlook  for
future  periods.  These statements include, among others, statements regarding the  anticipated  benefits
from the development, production, or acquisition of new film projects as well as anticipated revenue from
other sources and which may be critical to the overall revenue and profits of the Company

These  statements and expectations are based on currently available competitive, financial  and  economic
data  along with our operating plans, and are subject to future events and uncertainties that could cause
anticipated  events  not to occur or actual results to differ materially from historical  or  anticipated
results.  Among the events or uncertainties which could adversely affect future periods are:  changes  in
legal  contingencies; issues surrounding labor disputes with unions such as the Screen Actors Guild,  the
Director's Guild, and the Writer's Guild; our use of estimates and assumptions; and the concentration  of
our  capital  stock  ownership. The forward-looking statements in this news release  should  be  read  in
conjunction with the more detailed descriptions of the risk factors located in our Registration Statement
filed  with the United States Securities and Exchange Commission as amended on page 11 of Form 20-FR12G/A
Amendment 11 (annual report pursuant to Section 13 or 15(d) of the Exchange Act) for the year ended March
31,  2007 and as updated to March 31st, 2008 under Part 1 Item 3 Section 3.D entitled "Risk Factors". The
Company  undertakes no obligation to update or revise any forward-looking statements  contained  in  this
release as a result of new information or future events or developments.

Seven Arts Pictures plc US contact:
Erik Smith, +1-323-692-5010


Seven Arts Pictures plc UK contact:
Elaine New, +44-207-355-2051

Contact Information

  • Seven Arts Pictures plc