Seven Arts Pictures plc

September 12, 2008 03:43 ET

Opening of New Orleans Post Production Facility


    Seven Arts Pictures Opens New Orleans Post Production Facility acquired for $1,500,000 funded by
                          Refundable Louisiana Film Infrastructure Tax Credits

Seven  Arts  Pictures  plc (Seven Arts) (PLUS:SAPP) (OTCBB:SAPXF) announced the  opening  of  Seven  Arts
Pictures  Louisiana, a production and post-production facility ("the Studio") recently purchased  in  the
city  of  New  Orleans  for  $1,700,000.  The company announced  earlier  today  the  completion  of  the
certification from the State of Louisiana that the company's capital expenditures and expenses  for  this
new  production and post-production facility totaling approximately $9 million will be subject to the 40%
refundable Louisiana Film Infrastructure Tax Credit. The company expects to finance these credits in  the
near  future and will realize proceeds from the discount or sale of these credits of approximately  $2.75
million.  The new facility is located at 807 Esplanade and has opened in time to complete the  production
of  Night  of the Demons, a new film that will be announced shortly and which is expected to be completed
by June 30, 2009.

Financing  of  the  new facility comes from a 7 year note for $3,750,000 secured by  the  newly  acquired
property. A majority of the note will be repaid from the proceeds of the federal and state tax credits.

Peter  Hoffman, CEO of Seven Arts commented on the transaction, "The opening of Seven Arts  Louisiana  at
807  Esplanade will reduce our production and post-production costs on our upcoming movies such as  Night
of  the Demons significantly, and the $2,750,000 cash value of the tax credits granted to Seven Arts will
finance our production, distribution, and capital costs as well as provide tax incentives for other  post
production clients of Seven Arts. This leaves us well positioned to provide these services to Seven  Arts
and other filmmakers at competitive tax incentivized rates that are at the same time highly profitable to
Seven Arts."

The  newly acquired building and production facility ("the Studio") in the city of New Orleans is located
in the historic Faubourg Marigny District immediately adjacent to New Orleans' famous French Quarter just
minutes  away from Interstate 10. The Property has substantial historic value and, at one time,  was  the
largest and most expensive mansion in the French Quarter area.

Seven  Arts  will offer extensive film post-production services supported by state-of-the-art  technology
and  professional expertise. The Studio will offer unrivaled post production service, in luxurious  first
class surroundings and undisturbed comfort.

As  previously  announced today, the company has received Louisiana Motion Picture  Investor  Tax  Credit
certification  for  up to $7,000,000 of costs including the $1,500,000 acquisition of  the  property  and
$1,000,000 of post production equipment as well as up to $4,500,000 of distribution costs for Seven  Arts
film  projects. The company anticipates that 807 Esplanade will be open for initial operations in October
and  ready in time for post-production of "Night of the Demons", a Seven Arts Pictures film scheduled for
completion by June 30, 2009.

The Directors of the issuer accept responsibility to 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.

About the Louisiana Film Incentives Program
The  Louisiana film incentives program, enacted in 2002, has created a significant level of film activity
in  the  state. The state industry has seen some of the highest statewide film activity employment growth
in  the  country alongside New Mexico. Since 2001 both Louisiana and New Mexico have experienced compound
annual  employment  growth  of  23  percent  per  year. Louisiana  now  boasts  the  third  highest  film
concentration ratio of U.S. states behind California and New York.

The total value added to the Louisiana economy because of film spending in
2003  was  $7,452,996.  This  rose to $343,843,992 in 2005 due to increased activity.  Spending  on  film
production in 2003 supported 5,437 jobs and by 2005 Louisiana benefited by 13,445 additional jobs due  to
the  increase  in  film  expenditures. This clearly shows the employment benefits Louisiana  has  enjoyed
through its support of the film industry.

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

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