SOURCE: Seven Arts Pictures plc

Seven Arts Pictures plc

January 20, 2010 08:30 ET

Seven Arts Revenues and Profits Increase Substantially: Company Announces Year End Results

HOLLYWOOD, CA--(Marketwire - January 20, 2010) - Seven Arts Pictures plc (NASDAQ: SAPX) announced revenues of $16,372,000 and net profits of $4,551,000 for its fiscal year ended June 30, 2009. Primary earnings per share were 75 cents, a substantial improvement over last year.

Results at a glance

                                        Fiscal Year Ended
In thousands
Total Revenues                                    $16,372
Net Profit                                        $ 4,551
EPS Primary                                           75c

Despite the challenging year for the business community in general, Seven Arts is pleased to announce that total revenues and net profits increased significantly over the previous Fiscal Year's results, as a result of library revenues, film revenues from recent releases, and significant fee-related income.

As previously announced, Seven Arts changed its financial reporting from United Kingdom Generally Accepted Accounting Principals (GAAP) to International Financial Reporting Standards. This included replacing its former auditors Mazars LLP with RBSM LLP in order to be in compliance with the Securities and Exchange Commission regulations and NASDAQ regulations as previously announced. Seven Arts engaged RBSM to re-audit its consolidated financial statements for the twelve months ended March 31, 2008 and the three months ended June 30, 2008, as well as to audit its consolidated financial statements for the Fiscal Year ended June 30, 2009. Re-auditing the previous periods delayed completion of the 2009 year end audit and as a result, the Company has not met the January 18, 2010 filing date and is therefore not in compliance with NASDAQ Listing Rule 5250(c)(1). Seven Arts will submit all of its required filings within 60 days of receipt of a letter of non-compliance. Seven Arts anticipates that it will file its 20-F well within this time period and will therefore once again be compliant.

The Company has previously announced that its Chairman Anthony Bryan passed away. On December 28, 2009 the Board of Directors appointed its Chief Executive Officer, Peter Hoffman as the Chairman of the Board. The Board of Directors also has appointed Michael Garstin as its Chief Financial Officer to replace David Bailey Mr. Garstin formerly served as CFO of Orion Pictures Corp. and is familiar with the International Financial Reporting Standards for the motion picture business. The Company has engaged Elaine New, its former Finance Director and a current Board Member as a financial consultant.

Peter Hoffman, CEO of Seven Arts, commented, "We are working extremely hard with RBSM to conclude the year end audit and look forward to announcing our complete year end results. In a tumultuous year for us and for the world at large we are very satisfied with the performance of the company and look forward to another strong year in 2010."

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:

Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated.

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