Seven Arts Entertainment Inc.,an independent motion picture company

Fletcher Has Claimed Termination of Venture Agreement

Sep 05, 2011

June 07, 2011 19:45 ET

Seven Arts Pictures PLC Announces Fletcher Has Claimed Termination of Venture Agreement

HOLLYWOOD, CA--(Marketwire - Jun 7, 2011) - Seven Arts Pictures plc (NASDAQ: SAPXD) ("Seven Arts" or the "Company") announced today that it has received a letter from Fletcher Asset Management and BRG Investments, purporting to terminate the agreement executed on December 31, 2010 ("Agreement") and described in the Company's press release dated January 5, 2011. Under the Agreement, Fletcher, through BRG, and the Company intended to form a venture to invest at least $10,000,000 in production and release costs of motion pictures, including motion pictures to be produced by the Company and its affiliates. After review by counsel, the Company's management and board of directors have determined that Fletcher and BRG do not have the right to terminate the Agreement; as a result, the Company has determined that Fletcher is obligated to pay the Company not less than $1,500,000 as damages. The Company currently intends to seek legal redress from Fletcher and BRG for their improper, purported termination of the Agreement.

About Seven Arts:
Seven Arts Pictures PLC was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.

Cautionary Information Regarding Forward-Looking Statements:
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated. Persons are encouraged to read our Annual Report on Form 20-F for the fiscal year ended June 30, 2010, our subsequent Reports on Form 6-K, and our other documents filed with the Securities and Exchange Commission for meaningful cautionary language in respect of forward-looking statements in this press release. Interested persons are able to obtain free copies of filings containing information about the Company at the SEC's internet site (http://www.sec.gov). The Company assumes no obligation to update any of these forward-looking statements.