Entertainment One Ltd.

Entertainment One Ltd.
Seville Entertainment Inc.

August 20, 2007 15:55 ET

Entertainment One Announces Agreement to Acquire Canadian Distribution Company Seville Entertainment


TORONTO, ONTARIO--(Marketwire - Aug. 20, 2007) - Entertainment One (LSE:ETO) announces today that its Quebec subsidiary Videoglobe 1 Inc. has entered into a definitive agreement with Seville Entertainment Inc, parent company of Seville Pictures Inc., to acquire all of the outstanding shares of the company, effective immediately. The company will be part of the newly announced Entertainment One Filmed Entertainment division headed by Patrice Theroux, President.

"David and John (Reckziegel and Hamilton) have built a solid distribution business and their continued leadership will be instrumental in our future plans," stated Theroux. "We are coming into the Toronto Film Festival with strong financial backing and an eye to buying films with our U.K., Canadian and U.S. companies. There is a tremendous organic growth opportunity now in Canada. We will expand Seville's operations in Toronto, add a minimum of 24 films to Seville's release slate, and will seek to acquire other filmed entertainment assets in Canada."

Founded in 1999 by Co-Presidents David Reckziegel and John Hamilton, Seville Entertainment is an integrated distributor and international sales agent for feature films and television programming. Seville's theatrical release business currently handles 30 new releases per year in Canada and 5-10 per year internationally. Recent releases include "2 Days in Paris" starring Julie Delpy and Adam Goldberg as well as 2007 Academy Award nominated films "Volver," starring Penelope Cruz and "After the Wedding" directed by Susanne Bier. Upcoming films include "Bluff," the opening film of the Festival des Films du Monde in Montreal; "The Last Continent" ("Le Dernier Continent") directed by Jean Lemire; "Contre Toute Esperance" ("Summit Circle") directed by Bernard Emond; "Shake Hands with the Devil", based on the best selling novel by General Romeo Dallaire, and directed by Roger Spottiswoode; "Emotional Arithmetic" starring Susan Sarandon and Gabriel Byrne, and "Funny Games" starring Naomi Watts from director Michael Haneke.

With Canadian distribution rights to more than 500 independent features and worldwide rights to over 100 titles including "The Decline of the American Empire," and the children's television series "Mighty Machines," Seville's catalogue is one of the largest in Canada and is a significant addition to Entertainment One's existing entertainment rights assets in Canada, the US and the UK.

"We have a tremendous respect for Patrice and are thrilled to be an integral part of the business he is building," stated Reckziegel. "Entertainment One's strategy to build a global distribution business is perfectly in line with our own business plan With the weight of Entertainment One behind us, Seville is positioned to become an increasing presence in Canadian distribution, allowing us to exploit rights across Canada more aggressively."

Hamilton added, "In addition, we look forward to growing our international sales operation with increased acquisitions of world rights. We remain committed to representing the best of Canadian film to markets around the world."

Darren Throop, Entertainment One CEO, said: "The acquisition of Seville represents an exciting step in the Entertainment One international acquisition strategy, provides the business with a robust film distribution platform for the Canadian market and adds further exciting content to Entertainment One's growing library of entertainment rights."

Following the acquisitions of Contender in the UK in July and of Seville, Entertainment One's pro-forma revenue for the last financial year was approximately C$630m.

Theroux concluded, "This is a very strong base to continue our expansion. There will be more territories to come."

Entertainment One Ltd. (LSE:ETO) Admitted to trading on AIM on 29 March 2007, Entertainment One Ltd's strategy is to build a leading international independent entertainment content ownership and distribution business. Entertainment One is the largest distributor of home entertainment products in the Canadian market and following the acquisition of Contender also owns the leading independent UK distributor of filmed entertainment on DVD. The company also owns Koch Entertainment, the largest independent record label in North America and a leading independent distributor of music and video in the United States.

Contact Information