Acquisition of Australian Film Distribution Group

Entertainment One Ltd.

Acquisition of Australian Film Distribution Group Hopscotch

§ First acquisition into Australian market

§ Enhances eOne's international film infrastructure

§ Expected to be earnings enhancing in year one

Entertainment One Ltd. ("eOne", the "Company", the "Group"), the international entertainment group, is pleased to announce that it has agreed to acquire the Hopscotch group of companies ("Hopscotch") for a total consideration of AUD$20 million (approximately £12.9 million), payable by the issue of 4,126,636 million common shares in Entertainment One Ltd. (the "Consideration Shares") and approximately £6.45 million in cash, subject to a number of closing conditions.

Founded in 2002, Hopscotch is an Australian film distribution group based in Sydney, focused on independent international titles alongside local Australian content.

During 2010 Hopscotch released 15 titles theatrically and it controls a library of more than 300 feature film and television titles. Over the past three years notable releases have included Secrets and Lies, Vicky Cristina Barcelona, The Wrestler, The Kids Are All Right and most recently Golden-Globe nominated Barney's Version. The release slate for 2011 includes Oscar nominated Incendies, Don't Be Afraid Of The Dark and Beginners (starring Ewan McGregor). The US box office hit Source Code (starring Jake Gyllenhaal) will be released into the Australian market on May 5th. Alongside feature films, Hopscotch also controls exclusive DVD distribution rights for television programming, including the hit UK shows The Inbetweeners, The Catherine Tate Show and Secret Diary of a Call Girl.  Hopscotch's current management team, led by Troy Lum, Frank Cox and Sandie Don, will remain in place following completion.

In the year to June 2010, Hopscotch generated unaudited revenue of approximately £11.9 million and EBITDA (prepared consistently with eOne's accounting policies) of approximately £1.9 million. eOne expects the deal to be EPS enhancing in year one.

The acquisition of Hopscotch further builds eOne's international film distribution infrastructure, adding to its existing operations in Canada, the UK, Benelux and the US. Australia represents the last major English speaking film and television market outside of North America and the UK and eOne believes that the acquisition will enhance the Group's ability to access new film distribution opportunities, both within Australia and on a multi-territory basis. The acquisition will also enable eOne to have direct access into the Australian market for exploitation of the television titles produced by its own Television business.

Darren Throop, CEO of eOne, said:

"The acquisition of Hopscotch is another significant step forward for eOne. It adds to our existing international operations and is a major development in the delivery of our strategy. Troy, Frank and Sandie have built a successful and dynamic business. I am pleased to welcome them and their team into the Group and am excited about building eOne's position further in the Australian market and capitalising on the additional opportunities that our Australian presence will bring to the Group as a whole."

Troy Lum, Managing Director of Hopscotch, said:

"This deal enables Hopscotch to continue its growth as part of a larger international group. eOne has successfully built a genuinely unique multi-territory film distribution operation and we are delighted to be a part of the eOne group going forward."

Completion of the acquisition is subject to the satisfaction of a number of conditions typical for a transaction of this type, including admission to trading of the Consideration Shares, which all rank pari passu in all respects with the existing common shares. Completion is expected to take place on or around 4 May 2011.

Notes to Editors:

Entertainment One Ltd. (LSE:ETO) is a leading international entertainment company that specialises in the acquisition, production and distribution of film and television content. The Company's comprehensive network extends around the globe including Canada, the U.S., the UK, Ireland, Benelux, France, Germany, Scandinavia, Australia, New Zealand and South Africa. Through established Entertainment and Distribution divisions, the company provides extensive expertise in film distribution, television and music production, family programming and merchandising and licensing. Its current rights library is exploited across all media formats and includes more than 20,000 film and television titles, 2,400 hours of television programming and 45,000 music tracks.

Further information is available at www.entertainmentonegroup.com or email Redleaf at [email protected]. 

This announcement has been issued by and is the sole responsibility of the Company.