SOURCE: Seven Arts Pictures plc

Seven Arts Pictures plc

January 26, 2010 16:50 ET

Seven Arts Will File Form 20-F Within 60 Days

HOLLYWOOD, CA--(Marketwire - January 26, 2010) - Seven Arts Pictures plc (NASDAQ: SAPX) (the "Company") announced today that it received a letter from The NASDAQ Stock Market ("NASDAQ") on January 20, 2009, notifying the Company that it is not in compliance with the NASDAQ Listing Rule 5250(c)(1) ("Rule 5250(c)(1)") because it has not yet filed its Yearly Report on Form 20-F ("Yearly Report") for the fiscal year ended June 30, 2009. The Company must file the Yearly Report by March 22nd, 2010 or submit to NASDAQ a plan to regain compliance. Any exceptions granted by the NASDAQ Listing Qualifications Department to allow the Company to regain compliance with Rule 5250(c)(1) will be limited to July 14th, 2010. After March 22nd, if the NASDAQ does not agree to an additional exception relative to the Yearly Report and/or if the Company does not regain compliance with Rule 5250(c)(1) by July 14th, 2010, NASDAQ will provide written notification to the Company that its common stock will be delisted from The NASDAQ Capital Market. The Company will have the right to appeal such a delisting notice to a NASDAQ Hearings Panel for review and seek a stay of such delisting. Management believes this is very unlikely.

The Company is working diligently to finalize its delinquent filing and expects to file its Yearly Report well before the deadline, at which point the Company will again be in compliance with NASDAQ Listing Rules. The Company previously issued a press release on January18th in which it attributed the late filing to a change of Auditors and a change in reporting standards from UK GAAP to International Financial Reporting Standards (IFRS).

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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