Acquisition and subsidiary company administration

1 March 2013

Prime Focus London PLC

(the "Company" or the "Group")

Acquisition

Subsidiary company administration

Further to the announcements of 1st and 19th February, the Company announces that, as previously envisaged, its wholly owned subsidiary company, P F Broadcast and Commercials Limited ("PFBC") has been placed into administration at the request of its director.

Immediately subsequent to the administrator's appointment, Prime Focus Broadcast Limited ("PFB"), a wholly owned subsidiary of the Company, agreed to acquire from the administrator certain of the contracts, business and assets of PFBC (in administration) for a consideration of £384,608, a proportion of which is deferred. A number of employees of PFBC (in administration) will be transferred under TUPE guidelines to PFB.

This transaction will allow the continued successful operation, within the Group, of the existing Broadcast business which continues to perform well, and which the Directors believe will demonstrate both revenue and EBITDA growth in the year ending 31 March 2013, compared with the previous year.

Additionally, the Company has also acquired those aspects of the Commercials' activities previously embedded within PFBC such as World Versioning which can be operated through the infrastructure controlled by the Company. Turnover of the Commercials' activities contributed £3.05m to total Group turnover of £10.39m in the six months ended 30 September 2012. Turnover of the Commercials' activities not acquired by the Group amounted to approximately £2m in the same period.

Without the encumbrance of the PFBC overhead, the acquired Commercials' activities are expected to be earnings enhancing, as ongoing related overheads will be reduced by more than £1m per annum.

At 30 September 2012, PFBC had net liabilities of £0.3m. At 31 January 2013, PFBC had net liabilities of £1.3m. As a result of the administration, the net liabilities of PFBC will no longer be consolidated within the Company's financial statements.

For further information, please contact

Prime Focus London PLC

Bernard Kumeta

Chief Executive Officer +44 (0) 20 7565 1000

Northland Capital Partners Limited

Edward Hutton/Lauren Kettle +44 (0) 20 7796 8800

Newgate Threadneedle

Graham Herring / Josh Royston +44 (0) 20 7653 9850