ERT Enter Rights.

RNS Number:7429M
Entertainment Rights PLC
7 November 2001

7 November 2001

ENTERTAINMENT RIGHTS ACQUIRES POSTMAN PAT FOR A NET CONSIDERATION OF #5.1M

Entertainment Rights PLC, the integrated global media Group specialising in
children's characters and brands, announced today the acquisition of Woodland
Animations Limited for a net consideration of #5.1m.  The acquisition gives
Entertainment Rights all the rights to all Woodland's properties world-wide in
perpetuity, with the key property in the portfolio being Postman Pat. The
acquisition will be integrated into Entertainment Rights' existing
infrastructure and is expected to be earnings enhancing in its first year of
ownership.

Woodland is recognised internationally as a highly successful creator of
children's programming. Its library comprises some 85 episodes of high-quality
programming, including Postman Pat, Gran, Charlie Chalk and Bertha.  Developed
over the last 20 years, these shows have been aired on a wide variety of
television channels world-wide, including ABC in Australia, France 3, TV3 in
Spain and The Discovery Channel in the USA.  In addition to global television
exposure, these family classics are actively merchandised and distributed on
video throughout the world.

Postman Pat is one of the most popular children's series ever to be aired on
the BBC. The character has a significant international following and appeal -
the series has aired in over 55 countries world-wide with licensing agreements
in place in many key territories, including America, Australia, Canada,
France, Japan and Scandinavia. With over 90 licensees, in the UK and
internationally, merchandise associated with the series has regularly achieved
retail sales in excess of #10m annually.  More than 80 book titles have been
published to date and over 2.5m copies of Postman Pat videos have been sold in
the UK alone.

Woodland's character portfolio is highly complementary to Entertainment
Rights' existing brands, which include rights to well-known classic properties
such as Basil Brush, Barbie, Casper the Ghost, The Magic Roundabout,
Camberwick Green and Felix the Cat. Though recently the Postman Pat revenues
have diminished, Entertainment Rights' proven track record of invigorating
under-exploited properties, will ensure the character is revitalized on a
global basis. Entertainment Rights will develop new television programming,
new DVD and video offerings, as well as implementing an intensified consumer
products campaign for Postman Pat.

Entertainment Rights has purchased Woodland Animations for #5.4m in loan notes
2002/3 issued to the vendors on completion. The vendors also repurchased from
Woodland Animations on completion certain non-core royalty rights for #300,000
in cash.  The net consideration paid by Entertainment Rights on completion is
therefore #5.1m.  In the year ended December 2000, Woodland received royalty
revenue of #895,000, produced profit before tax of #430,000 and had net assets
of #1.2m (restated to Entertainment Rights' accounts policies). Entertainment
Rights will not be assuming any of the Woodland overheads.

Commenting on the acquisition, Mike Heap, Chief Executive of Entertainment
Rights said:

"Entertainment Rights has a focused acquisition strategy and the addition of
the Postman Pat family is in line with our policy of developing major consumer
franchises.  There are terrific opportunities to develop Postman Pat,
including the creation of new, and sales of existing, television programming,
licensing and merchandising, DVD, video, publishing and music. At less than
six times multiple of 2000 royalty earnings, this all rights acquisition is
expected to be earnings enhancing in the first year of ownership.

"Classic brands have become increasingly attractive to television channels,
marketeers and retailers. Postman Pat has been well established and nurtured
by its owners for over 20 years - Entertainment Rights' development of the
property will take the character to a new level of success.  Postman Pat joins
an unrivalled cast of characters and brands, including Basil Brush, Barbie,
Love Hearts, and The Magic Roundabout. His strong British base combined with
Entertainment Rights' proven international expertise, will create the platform
for the development of the character into one of the world's leading global
children's brands."

Separately, Barbie in the Nutcracker, for which Entertainment Rights has the
international television and video rights has debuted at Number One in the UK
video charts, having already sold more than 100,000 videos in its first week
of release. All major high street retailers have reported strong sales of the
video. The management expects sales of Barbie in the Nutcracker will continue
to exceed expectations.

                                   - ENDS -

Notes to editors:

Photographs for the media are available at Visual Media Online -
www.vismedia.co.uk Tel: 020 7287 4646.

Enquiries:

Mike Heap, Chief Executive
Julie King, Head of PR
Entertainment Rights PLC                      Tel:  020 8762 6200

Tim Spratt / Tania Parsons
Financial Dynamics                            Tel:  020 7831 3113

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