News

Entertainment One announces agreement to acquire Benelux distribution company RCV Entertainment

09 January 2008

• LEADING INDEPENDENT FILM DISTRIBUTOR WITH OVER 10% MARKET SHARE
• INCLUDES LONG TERM RIGHTS TO 1,900 FILMS IN LIBRARY

Toronto/London, January 9, 2008 – Burgeoning worldwide independent studio Entertainment One has agreed to acquire RCV Entertainment, a leading independent Benelux film distributor and content owner with a long-term, all-rights library of c.1900 titles, it was announced today by E1 CEO Darren Throop.  The agreement marks E1’s second acquisition into the European market and follows the company’s stated strategy to become the world’s leading independent filmed entertainment content ownership and distribution business.  RCV will be part of E1’s Filmed Entertainment division headed by President Patrice Theroux.

The acquisition establishes Entertainment One as one of the world’s largest independent distributors by number of territories, with a strong market position in three European territories and North America.   With a network of companies now covering the U.K., the U.S., Canada, Belgium and the Netherlands, E1 is well positioned to acquire films, television and kids programs across all territories and platforms and continue its expansion through the strategic acquisition of distribution companies in other key territories. E1 will also continue to aggressively pursue consolidation opportunities in the territories it operates, through the acquisition of libraries or the acquisition of competing companies, further leveraging its existing network and capitalize on the resulting synergies.

Darren Throop, CEO of the Company, said: “This deal represents another significant step in our strategy, further enhancing our position as a leading international film and entertainment content owner and distributor. Following our acquisitions earlier in the year of Contender in the UK and Seville in Canada, and our multi-territory distribution agreement with Summit Entertainment, we have now established ourselves as a multi-territory distributor of significant scale in the international market place.  RCV is a clear market leader in the Benelux and we at E1 are thrilled to have them on the team”

Founded in 1979, RCV Entertainment is a leading integrated distributor for feature films in all media including theatrical, home entertainment, television and new media, with a focus on acquiring titles from independent U.S. producers alongside locally produced content.  Key executives Jan Kouwenhoven, CEO, and Joke Wartenbergh, COO, have signed long term employment agreements to remain with RCV and run the business with their veteran staff.

RCV released 37 new theatrical features in 2007, including Premonition, Miss Potter, Resident Evil: Extinction, Run Fat Boy Run, Hairspray and The Golden Compass.  Upcoming films for 2008 include Bangkok Dangerous with Nicolas Cage; The Eye starring Jessica Alba; Sleuth starring Michael Caine and Jude Law; director Paul Haggis’ In the Valley of Elah starring Tommy Lee Jones and Charlise Theron; August Rush starring amongst others Jonathan Rhys Meyers, Terrence Howard and Robin Williams; Rendition directed by Gavin Hood (Tsotsi) and starring Meryl Streep and Jake Gyllenhaal; Penelope; Shine A Light, the Rolling Stones concert film shot by Academy Award-winning director Martin Scorsese; Defiance starring Daniel Craig and Liev Schreiber and directed by Ed Zwick; director Fernando Meirelles’ Blindness starring Julianne Moore and Gael Garcia Bernal; and Miss Pettigrew Lives for a Day.

E1 has also acquired the distribution rights to RCV’s all rights library of more than 1900 independent features, which accounted for more than 40% of the company’s 2006 revenue.  With highlights including What Women Want, Sin City, Perfume, La Vie en Rose, The Notebook, Blade and many other commercial titles, RCV’s library is a valuable addition to Entertainment One’s worldwide content inventory.

“We are very thrilled to join this fast-growing, young, energetic company with a straight forward no-nonsense mentality,” stated Kouwenhoven/Wartenbergh.

Théroux concluded, “Jan and Joke are widely regarded as excellent film distributors and have built an outstanding reputation for RCV over the years.  2007 was a strong year for RCV and we look forward to working with them on their 2008 line-up. This acquisition allows us to follow our plan and enter the European market at the highest level and to have the ability to acquire filmed entertainment content on a multi-territory basis with a considerably larger footprint. We will continue to look at other opportunities to continue this expansion.”

Note to Editors:
Entertainment One Ltd. (LSE: ETO) Admitted to trading on AIM on 29 March 2007, Entertainment One Ltd's strategy is to build a leading global independent entertainment content ownership and distribution business which acquires films, television programs and music content and exploits these rights in all media throughout the world. Entertainment One holds all rights to Summit Entertainment features in Canada and the UK and to Image Entertainment content in Canada, and is the largest distributor of home entertainment products in the Canadian market.  Entertainment One owns Canadian distribution and international sales unit Seville Entertainment, Koch Entertainment, the largest independent record label in North America and a leading independent distributor of music and video in the United States, and Contender Entertainment Group, one of the leading independent UK distributors of filmed entertainment.
www.entertainmentonegroup.com

RCV Entertainment B.V. Founded in 1979, RCV Entertainment is a leading integrated distributor for feature films in the Benelux territory, covering The Netherlands, both French and Flemish speaking regions of Belgium and Luxemburg. Distributing the titles to all media including theatrical, home entertainment, television and new media by handling all-rights is RCV’s strategy to create the best results and synergy in all business units. RCV Entertainment focuses on acquiring titles from independent U.S. producers such as New Line Cinema, Summit Entertainment, Mandate Pictures and Focus Features. Furthermore, RCV handles all-rights of locally produced entertainment content. RCV releases about 35 theatrical films and many more home entertainment titles per year. Except for theatrical releases in the Belgian territory, which are handled by Kinepolis Film Distribution, part of the leading Kinepolis Group, all activities are managed from Hilversum, the media capitol of Holland. www.rcv.nl