News

Trading Update

17 April 2008

In its first full year of operations since listing on AIM, Entertainment One Ltd. ('Entertainment One' or the 'Company') reports that it is well advanced in executing its strategy to build a leading independent international entertainment content and distribution business.

• The board is pleased with the progress that has been made in building its multi-territory filmed content entertainment business. The Company has completed three significant acquisitions in the year to 31 March 2008:
  • Seville Pictures in Canada;
  • Contender Entertainment Group in the UK; and
  • RCV Entertainment in Holland and Belgium.

These acquisitions have successfully established the Company as a significant multi-territory platform to distribute filmed entertainment content. The business is now benefiting from an enhanced profile within the industry and from the recruitment of senior-level expertise.

• A strong pipeline of film content has been built through a series of output deals with independent studios and producers, including Summit, Yari and THINKFilm. Entertainment One now has a catalogue of over 3,000 film titles across its different markets.
• The Company's distribution business, which encompasses Canada's largest distributor of home entertainment products and the USA's largest independent music and video distributor, continues to perform strongly.

The Company expects its preliminary results for the 12-month trading period ended 31 March 2008 to be in line with current market expectations and anticipates announcing these results on 25 June 2008.

Darren Throop, Chief Executive of Entertainment One, commented:

'We have made excellent progress in our first year, putting some of the building blocks in place as we create an alternative to the major studios' multi-territory film distribution operations. We ended the year with a strong cash position, balance sheet and robust margins.

Looking forward, we shall pursue our acquisition and consolidation strategy, with expected strong sales growth balanced out by accelerated investment in film rights and associated marketing costs.'

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