Agreement with the Isle of Man Treasury

Pinewood Shepperton plc

1 October 2012

Agreement with the Isle of Man Treasury to advise on film investment opportunities and to undertake UK distribution activities for its £25m fund and trading update

Agreement with the Isle of Man Treasury

Further to the announcement of 6 June 2012, Pinewood Shepperton plc ("Pinewood" or the "Company"), a leading provider of services to the global film and television industry, today announces that it has signed an agreement (the "IOMT Agreement") with the Isle of Man Treasury ("IOMT") to source and advise on film investment opportunities for the £25 million fund established by the IOMT and to monitor and capitalise on UK distribution rights in films and television programmes funded by the IOMT. The IOMT will be advised by Pinewood Film Advisors Limited ("PFA"), a wholly owned subsidiary of the Company. The initial period of the IOMT Agreement will be five years. The IOMT Agreement is conditional on PFA receiving certain required consents from the Financial Services Authority and Pinewood expects to satisfy such conditions within the next few weeks. A further announcement will be made in this regard in due course.

In addition, the Company notes that Goodweather Investment Management Limited (a member of the Peel Group) has agreed to sell 4,891,582 ordinary shares in the capital of Pinewood to IOMT at a price of 250 pence per share. Completion of the sale of these shares is conditional on the IOMT Agreement completing by 31 October 2012. In connection with its proposed acquisition of shares in Pinewood, IOMT has given an undertaking to Pinewood and N+1 Brewin that it will not acquire any other shares in Pinewood until the expiry of the period ending two years after it acquires the shares, subject to certain exceptions including pursuant to a general offer or scheme of arrangement or to maintain an aggregate holding of 9.9% of Pinewood's issued share capital or at any time with N+1 Brewin's consent.

Under the terms of the IOMT Agreement, PFA will receive: an annual management fee; fees on film projects that the IOMT invests in; a proportion of the revenues received from the UK distribution rights for films; and a proportion of the revenue received from the existing library of 97 IOMT funded films as a fee for managing the collection of revenues arising from those films.

The IOMT intends to offer a broad range of film investment including equity finance; UK distribution and 'gap' financing. There are no upper or lower limits on its investments and each project will be considered on a case by case basis.

On completion of the IOMT Agreement, Steve Christian, the current Chairman of CinemaNX (the previous adviser to the IOMT), together with a core team of four CinemaNX employees will join PFA to provide additional expertise and continuity.

Trading update

Film revenues are now largely contracted for the remainder of the financial year. The investment in Pinewood's television facilities was completed on time and within budget and has resulted in further interest in its television offering. Media Park occupancy levels remain high at 96%.

On 7 September, Pinewood Films announced a further film investment project, Belle, which began shooting on 24 September 2012.

The consultation on the future expansion of Pinewood Studios continues and an outline planning application will be submitted to the local planning authority, South Bucks District Council, in the autumn. 

Ivan Dunleavy, Chief Executive said:

 "We are delighted to have successfully concluded discussions with the Isle of Man Treasury. This agreement is a further example of extending the reach of the Pinewood brand and builds on the Company's successful Pinewood Films initiative to play a bigger role in UK independent film and television production. Pinewood is a key part of the UK's film industry which made an economic contribution to the UK economy of £4.6bn in 2011.

"The Company's unique assets in the UK, together with its film financing and strategic international initiatives, mean that it is well placed to cater for the existing and planned global growth in creative content. Demand for stage capacity at Pinewood continues to rise and as a result the Board has approved an additional 45,000 sq ft studio facility, including a new sound stage, at Pinewood Studios. Pinewood is an expanding global brand, allowing access to premium services around the world".

Enquiries

Notes to editors

·; Pinewood Shepperton plc is Europe's largest provider of stage and studio space

·; The 30,000 sq ft Richard Attenborough Stage was officially opened on 23 April 2012

·; Pinewood, Shepperton and Teddington Studios together accommodate 34 stages, five dedicated digital television studios and five digital presentation studios

·; Pinewood Studios is home to Europe's leading studio-based underwater filming stage, as well as one of the largest exterior water tanks in Europe

·; Pinewood Studios has Europe's largest green screen

·; Pinewood and Shepperton Studios have been home to over 1,500 films in the last 75 years

·; Pinewood, Shepperton and Teddington Studios have hosted over 600 TV shows

Forward looking statements

This announcement includes forward looking statements that are based on current expectations and assumptions. They involve risks and uncertainties and may differ, possibly materially, from actual results, performance and achievement. Neither the Company, nor any of its directors, undertakes any obligation to update publicly or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

For more information

Disclosures on the Company as required by AIM Rule 26 can be found at: www.pinewoodgroup.com/investor-relations.

Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website, nor any other website, is incorporated into, or forms part of this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.