ERT Enter Rights.

    RNS Number : 5602X
  Entertainment Rights PLC
  26 June 2008
   




    Entertainment Rights Plc
    ("ER", "the Group" or "the Company")

    Strategic Review Update

    ER is pleased to announce today a summary of the current findings of the ongoing strategic review being conducted by Chief Executive
Officer, Nick Phillips.  

When Nick Phillips joined the Board and was appointed Chief Executive Officer on 18 March 2008, his first priority, in conjunction with the
Executive Management Team, was to undertake a strategic review of the Group*s businesses. Mr Phillips has since concluded his review and has
presented a series of initiatives which have been debated and adopted by the Board.

    

    Transformational Acquisition
    The acquisition of Classic Media was a successful strategic transaction that transformed ER into a truly global children's and family
content leader with a significant foothold in the US. The addition of Classic Media's brands, management resources and distribution
partnerships has strengthened ER's competitive position, increased the Company's growth potential and enhanced its ability to generate
profitable cash flows.

    Capital Allocation 
    The Board has initiated a program aimed at more efficiently and effectively allocating capital, prioritised on the basis of the growth
potential of its asset base and new multi-platform opportunities, including digital.  This program is designed to maximise ER's resources
and improve the Company's growth prospects in 2008 and beyond.  

    Cost Containment
    The Board is also implementing cost containment initiatives to enhance profitability.  These initiatives include targeting cost-savings
by capitalising on opportunities to further streamline the Group's global operations and maximise the remaining synergies created by the
Classic Media transaction. 

    Debt Reduction 
    
    In the current economic environment, reducing levels of financial risk is seen as prudent and debt reduction will be a key financial
priority of the Board in conjunction with its focus on optimising capital resources. As at 31 December 2007, the Company*s net debt was
�107.9 million, a level within its current banking facilities.  Of the Company*s term debt, approximately 65% has a maturity date beyond 5
years. Whilst ER will continue to invest capital in those opportunities that offer the most potential, a portion of the Company*s cash
flows, as well the cost-savings achieved from streamlining operations, will be earmarked for accelerated debt reduction.


    Other Opportunities
    
    The Company will continue to review potential acquisitions of, principally, intellectual property rights covering children*s and family
entertainment brands that can be exploited on a global basis. The acquisition of rights to Tinga Tinga Tales*, a brand new property with
media distribution already secured on major US and UK TV channels, (announced separately in today*s AGM statement) fits this criteria.
    Given the superiority of ER's assets, the Company may receive offers from potential acquirers of select brands. The Board will fulfil
its fiduciary responsibility to review any and all such offers, should they surface, with a commitment to increasing shareholder value and
ensuring that ER is in a position to maximise its growth potential over the long-term. 
    
Mr Phillips commented: "During the past three months, we have had an opportunity to take a detailed look at ER, its brands, management and
its strategic plan. It's clear that ER is fundamentally strong, its content assets are exceptional and the Company is well positioned to
build on its leadership position in the global children's and family entertainment industry. We are now pursuing a host of initiatives aimed
at further streamlining our operations and reducing costs, more efficiently allocating our capital to those assets with the most growth
potential and reducing debt. We are committed to maximising the performance of ER to the benefit of its shareholders."

    Ends 

    Enquiries:

    Entertainment Rights plc
    Nick Phillips, Chief Executive Officer  
    Elizabeth Gaines, Chief Finance & Operations Director  
    Simon Avis, Head of PR                                                                     020 8762 6200

    Bell Pottinger Corporate & Financial
    David Rydell / Amy Rajendran                                                           020 7861 3232


    Editors Notes
    About Entertainment Rights

    
Entertainment Rights Plc (ER) is a global entertainment media company, with a portfolio that includes some of the world*s most popular
children*s, family and pop-culture brands. With offices in London, New York and Nashville, the Company specialises in the origination,
acquisition and distribution of children*s and family programming, characters and brands. The Company*s catalogue appeals to a broad
demographic from pre-school children to young adults and families. The ER catalogue consists of more than 3,600 hours of content that has
been distributed to in excess of 170 territories worldwide. ER*s expertise is in the exploitation of its catalogue of brands and content in
a number of key disciplines, including television and theatrical distribution, product licensing and merchandising, live and home
entertainment, and digital media.

    ER is a publicly quoted company listed on the London Stock Exchange. Annual revenues have increased from �1.8m in 1999 to �68.1m in
2007, the last reported financial year.

    Key brands in ER's global portfolio include Postman Pat�, Where's Waldo?�, VeggieTales�, Rupert Bear�, George Of The Jungle*, Lassie�,
Casper The Friendly Ghost�, Basil Brush�, Finley The Fire Engine*, The Lone Ranger�, He-Man� and the Masters of the Universe�, She-Ra* and
Rudolph the Red-Nosed Reindeer�. 

    Visit www.entertainmentrights.com



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