Seven Arts Pictures plc
PLUS : SAPP

February 28, 2008 03:00 ET

Seven Arts Pictures Plc: Sale of USDC Stock and Establishment of Post Production Facility in New Orleans

Market Update

LONDON, UNITED KINGDOM--(Marketwire - Feb. 28, 2008) - The PLUS-quoted feature films producer and distributor Seven Arts Pictures plc (PLUS:SAPP), is pleased to announce the sale during late December and early January of its entire holding of 350,000 shares in US Dry Cleaning. These shares were received from Unique Fidelity Engineering Ltd, (Unique) a Hong Kong based investment group, in September 2007 as part of Unique's purchase of 2,500,000 shares in Seven Arts Pictures plc. The UDRY stock sale generated cash proceeds of $279,820 or approximately $0.80/share. In addition to proceeds from the sale of UDRY, Seven Arts received notes from Unique totaling $500,000 which are due for payment to Seven Arts in calendar 2008.

Seven Arts Pictures has established a post production facility in the historic district of New Orleans, Louisiana taking advantage of the very beneficial local tax structures and reliefs available. The company expects to be operational within six months and will provide production and post production services for the many motion pictures brought to Louisiana to benefit from the significant tax subsidies.

Through its subsidiary, Seven Arts Post LLC, the Company has arranged $3.7 million of indebtedness from Advantage Capital Partners secured by the post production facility The Company expects to repay the debt over the seven year term from the federal and state incentive programmes available in Louisiana.

The Directors of the Issuer accept responsibility for this announcement.

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