Seven Arts Pictures plc
LSE : SAPP

February 25, 2008 06:41 ET

Seven Arts Pictures Plc: Market Update

LONDON, UNITED KINGDOM--(Marketwire - Feb. 25, 2008) - The PLUS-quoted feature films producer and distributor Seven Arts Pictures (PLUS:SAPP) announces that it is to change its year end from 31 March to 30 June.

As the business of the Company is highly focused on the major film markets of the Berlin Film Festival held in February each year, the Cannes Film Festival in May, Toronto in September and the American Film Market in October or November, changing the year end will result in spreading the Company's income more evenly between the two halves of the financial year.

As part of its distribution deal with Metro Goldwyn Meyer, Seven Arts has arranged finance for the print and advertising costs of the film "Deal" with Blue Rider Entertainment Inc. The total amount of the loan is $1.35m and the term is for one year. The Company has issued an option for Blue Rider to acquire 250k ordinary shares at 15p/share for the period of the loan. The US release date for "Deal" is now set for April 25th distributed through MGM.

The Company has entered into six month loan arrangement with Trafalgar Capital Specialized Investment Fund (Trafalgar). The loan carries a 10% interest rate a 7.5% redemption rate and bears arrangement fees. The loan is secured by debenture over the assets of the company. In the event of default shares to the value of Pounds Sterling 500,000 assuming a 25% discount to market price will be issued to Trafalgar.

The Company has also warranted that the lender may subscribe for up to 800k shares at the volume weighted average share price on the day before the closing date of the loan. The warrant is available upto the fifth anniversary of the closing date of the loan.

Seven Arts is still progressing with its application to be traded on the OTC Bulletin Board of Nasdaq and the Company will be pleased to update the market when further news is available.

The Directors of the Issuer accept responsibility for this announcement.

NOTES TO EDITORS:

Seven Arts Pictures Plc is a producer and distributor of feature films with offices in London and Los Angeles. The company specializes in the international licensing of motion picture distribution rights and owns a library of approximately thirty completed titles, whose distribution rights are exploited all over the world through theatrical release, DVD and television. Seven Arts earns commissions from the introduction of financing for new motion pictures, through a combination of pre-sales and other types of non-recourse financing such as tax-preferred and equity investments.

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