Disposal of sports and board resignation

FIRST ARTIST CORPORATION PLC

("First Artist" or "the Company" or "the Group")

Disposal of First Artist Sport

Board Changes

First Artist Corporation plc (AIM: FAN) is pleased to announce that it has conditionally reached an agreement to sell First Artist Sport Limited ("First Artist Sport" or "FAS"), its football player representation agency.

First Artist Corporation announced in June 2009 that it was reviewing its options with regard to its non-core businesses, in keeping with its stated objectives of debt reduction and the redefinition of the Group with media at its principal focus. Accordingly, First Artist Sport has been classified as "held for sale" in the Company's accounts.

The Company has agreed to sell First Artist Sport to Jon and Phil Smith (the "Purchasers") for an initial consideration of £1. Additional consideration is payable to the Company equal to the sum of 5 percent of revenue generated in the years ended 30 November 2011 and 2012 in excess of £3 million.

Simultaneously Jon and Phil Smith will leave the Board of the Company with immediate effect. The Purchasers have entered into compromise agreements to the value of £280,000 in aggregate payable in cash by 31 July 2011. The Sale and Purchase Agreement is conditional on, inter alia, a deed of release to be entered into between the Company and AIB Group (UK) plc. The Purchasers will assume all liabilities (including contingent liabilities) and obligations of FAS with immediate effect. The Company will write-off an inter-company debt that has accrued to the current value of £0.4 million. 

The following table summarizes the financial condition of First Artist Sport.

* Audited accounts

Commenting on his departure from the Board of First Artist Corporation, Jon Smith said: "I started First Artist in 1986. The Company has enjoyed some considerable success through the years, including our public floatation in 2001. Having completed the transaction with David Stoller and Jeremy Barbera in December of last year I have decided to step down from the Board and leave the Company. David, Jeremy and their team are immensely talented and I believe are best placed to take the Company forward and capitalize upon the assets that it possesses. I would like to wish everyone at First Artist every success in the coming years and as a shareholder look forward to sharing in their achievements".

Commenting on today's announcement, Jeremy Barbera, Chief Executive of First Artist said: "the board is grateful to Jon for the many years of support he has given to First Artist, and for guiding the company in its journey from a small private company to an AIM listed transatlantic enterprise. The board would also like to thank Phil Smith for 19 years of sterling service on behalf of the group. We look forward to building upon the successful foundation of Dewynters and Spotco, as First Artist Corporation continues to evolve into a global leader in the media and entertainment sector.

Enquiries:

First Artist Corporation Plc

Jeremy Barbera/David Stoller/ Shirley Stapleton Tel: +44 20 79930000

Seymour Pierce Limited

Stewart Dickson /Tom Sheldon Tel: +44 20 71078000

Bishopsgate Communications Limited

Duncan McCormick Tel: +44 207 5623350