ERT Enter Rights.

    RNS Number : 3771E
  Entertainment Rights PLC
  26 September 2008
   

    Embargoed: 0700hrs, 26 September 2008

    Entertainment Rights Plc

    ("Entertainment Rights" or the "Company")

    Trading Statement

    The Board of Entertainment Rights wishes to update shareholders in relation to a number of matters, including the anticipated trading
performance for the financial year to 28th February 2009. 

    In July 2008 the Company agreed an amendment to its US DVD distribution agreement with Genius Products LLC ("Genius"), its primary US
DVD distributor.

    The alterations under the revised agreement have resulted in certain valuable Intellectual Property ("IP") rights reverting to
Entertainment Rights for future commercial exploitation, the reduction of royalty margins on DVD sales and a revised payment profile.

    Whilst the revised agreement is in the best interests of Entertainment Rights, it has resulted in lower royalty payments to the Company
and payments will be phased over a longer period of time. 

    As a result of the changes to the Genius distribution agreement, the Board now expects a reduction in EBITDA for the financial period to
28 February 2009 of around �7m and a reduction of �6.5m for the 2010 financial year. 

    As a consequence of the revised payment plan with Genius, drawings under the Group's debt facilities have increased, such that net debt
now stands at around �127m. This increased level of drawings is expected to reduce significantly over the key Christmas trading period,
where projected orders from our key US retailers are currently tracking around 12% above last year, although debt levels are likely to
remain above previously anticipated levels for a number of months. The Company is in constructive discussions with its lending bank
regarding the effects of the revision. 

    "The near term impact of the revised distribution agreement is disappointing but importantly the process has enabled the Company to
regain certain valuable IP rights. We are also pleased with the initial indications from our key US accounts." said Nick Phillips, CEO of
Entertainment Rights Plc. 

    The Board will update shareholders as part of its interim results at the end of October 2008.

    Enquiries:

    Entertainment Rights plc - Tel. 020 8762 6200
    Nick Phillips, Chief Executive Officer  
    Simon Avis, Head of Public Relations                        

    M: Communications - Tel. 020 7153 1530
    Ben Simons or Charlotte Kirkham

    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 in more than 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?�, Tinga Tinga Tales*, 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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