Spackman Equities Group Reports Year End Results

TORONTO, ONTARIO--(Marketwired - May 1, 2013) - Spackman Equities Group Inc. (the "Company" or "SEGI") (TSX VENTURE:SQG) today reported its financial results for the year ended December 31, 2012.

Revenue for the year ended December 31, 2012, was $6,234,000 compared to $53,000 in 2011, not including revenue of $397,000 from discontinued operations in 2011. The increase in revenue is primarily attributable to the commercial success of the film, All About My Wife, which was produced by SEGI's subsidiary ZIP Cinema Co., Ltd. All About My Wife became Korea's highest grossing romantic comedy of all time.

Net loss for the year was $914,000 or $0.007 per share compared with a net loss of $608,000 or $0.012 for fiscal 2011.

Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) for 2012 was ($308,000).

At December 31, 2012, SEGI had $6,745,000 million in cash, cash equivalents and marketable securities. There are 148,829,183 common shares outstanding.

EBITDA for 2012 was calculated by deducting from the loss for the year $606,000 for interest, income taxes, depreciation and amortization. EBITDA is not defined by International Financial Reporting Standards ("IFRS") and the Company's use of such term or measurement of such item may vary from that of other companies. The EBITDA calculation is provided as additional detail so that investors may have a better understanding of the significant events and transactions which have affected the Company's results.

The audited financial statements for the year ended December 31, 2012, and Management's Discussion and Analysis of the results, are posted on SEDAR at www.sedar.com.

Highlights of Fiscal 2012

• In the first quarter of 2012, the Company purchased 55% of Team Vision International Limited which owned approximately 93% of each of Opus Pictures Co., Ltd. ("Opus") and Zip Cinema Co., Ltd. ("Zip"). Opus and Zip are independent Korean based motion picture production companies. Team Vision International Limited subsequently changed its name to Spackman Entertainment Group Limited.
  
  
• In the second quarter of 2012, Zip released ALL ABOUT MY WIFE, a romantic comedy, which quickly became the top box office film in Korea. The film has sold over 4.58 million tickets in Korea and became Korea's highest-grossing romantic comedy of all time.
  
  
• The Company completed a private placement of common shares in the second quarter of 2012 for gross proceeds of $4.35 million which further strengthened the Company's cash and financial position.
  
  
• In the third quarter of 2012, the Company established a wholly-owned subsidiary in Korea by the name of Spackman Entertainment Korea Inc. to invest into the slate of films to be produced by Opus and Zip. Also in the third quarter, the Company's subsidiary Spackman Entertainment Korea Inc. acquired a 67% interest in Upper West Inc., which is the owner and operator of the Martini Kitchen, an entertainment café and lounge located in Seoul, Korea.
  
  
• In the third quarter of 2012, the Company established a wholly-owned investment company by the name of SEGI Investments Limited ("SIL"). SIL seeks mid-to-long term capital appreciation by investing in a concentrated portfolio of equity securities of publicly traded Korean small capitalization companies.
  
  
• In the fourth quarter of 2012, the Company increased its ownership in Spackman Entertainment Group Limited from 55% to 65.8% and, as a result, the Company now owns indirectly approximately 68.2% of each of Opus and Zip;
  
  
• In the fourth quarter of 2012, the Company sold its 17.92% stake in Intech LCD Group Inc. back to the original owner for a price equal to the Company's acquisition cost of the shares.
  
  
• In the fourth quarter of 2012, the Company and SIL accumulated a stake of more than 5% of Cheongbo Industrial Co., Ltd., a Korean auto-parts manufacturer listed in Korea. The Company disposed of this stake in the first quarter of 2013 and realized a gain of $409,000.
  
  
• The Company reported positive cash flow and positive net income for the first time during the three and nine months ended September 30, 2012. For the third quarter revenue was $1.2 million and net income was $70,000 or $0.0004 per share.
  
  
• Revenue for the 2012 year improved to $6,324,000 from $53,000 in 2011, not including revenue of $397,000 from discontinued operations in 2011, mainly as a result of the revenue generated by the film ALL ABOUT MY WIFE, and the Company recorded EBITDA of ($308,000) for the year (compared with a net loss of $608,000 for 2011).
  

About Spackman Equities Group Inc.

Spackman Equities Group Inc. ("SEGI") is a diversified investment holding company that invests into and develops small/medium-sized growth companies that possess proprietary technologies or industry-specific know-how, primarily in Asia. SEGI also makes investments in selected publicly-traded companies that SEGI believes are attractive investment propositions. The objectives of SEGI are to (i) invest into or acquire businesses with compelling growth potential at attractive valuations, (ii) build a diversified and balanced portfolio of investments, and (iii) deliver the collective value derived from the performance of its portfolio of investments to the shareholders of SEGI. Currently, SEGI's holdings include:

• indirectly-held 68.2% ownership of two leading Korean movie production companies, Opus Pictures Co., Ltd. ("Opus") and Zip Cinema Co., Ltd. ("Zip");
  
  
• 100% of Spackman Entertainment Korea Inc., an investment company that invests into films produced by Opus and Zip;
  
  
• indirectly-held 67.4% ownership of Upper West Inc. which owns and operates the Martini Kitchen, an entertainment café and lounge located in Seoul, Korea:
  
  
• 100% of SEGI Investments Limited, an investment company that invests into Korean public equities;
  

Visit www.spackmanequities.com for further information.