Interim Management Statement

Entertainment One Ltd.

Interim Management Statement

Entertainment One Ltd., the international entertainment group, presents its Interim Management Statement for the ten month period to 31 January 2013.

§ Group revenues increased 15% year to date (including Alliance revenue for the period since acquisition)

§ Film revenues up 24% driven by strong slate and Alliance trading since acquisition

§ Integration of the Alliance business proceeding ahead of schedule

§ Continued success in Television driving 30% increase in revenue

§ International success of Peppa Pig continuing with prime 6pm timeslot on Nick Jr channel in US commenced

§ Full year earnings anticipated to be in line with management's expectations

Overview

The Group has experienced another successful period which included completion of the acquisition of Alliance Films Holdings Inc. (Alliance) on 8 January 2013. Group revenues increased 15% year to date on a reported basis (11% excluding the contribution from Alliance). Full year earnings are anticipated to be in line with management's expectations.

Film

Film revenues year to date were 24% ahead of the prior year (15% excluding Alliance). The Group released 159 movies theatrically in the year to date (including eight Alliance titles in January 2013) compared to 125 in the previous year, generating a 56% increase in box office receipts year-on-year. Successful titles included The Twilight Saga: Breaking Dawn Part 2, The Impossible, Nativity 2, Quartet, and Django Unchained.

Following the completion of the Alliance acquisition, the business integration process is progressing well with senior management teams confirmed in all three impacted territories: Canada, UK and Spain. The integration is delivering savings ahead of schedule and remains on track to deliver management's synergy target.

The Group is scheduled to release over 50 films theatrically in the first quarter of 2013 including Warm Bodies, Parker, Song for Marion, Zero Dark Thirty and I Give it a Year.  In addition, the final quarter of the financial year will benefit from the DVD release of successful theatrical releases including Breaking Dawn Part 2, Looper and The Sweeney.

Television

Television has delivered over 215 half-hours of programming year to date, compared to 152 in the prior year, driving a 30% increase in revenue. The most significant production deliveries included the third season of Haven and non-scripted shows Mary Mary II and Perfect Storms. The business expects to deliver a total of around 290 half-hours of programming in this financial year, including Rogue on DirecTV which will broadcast in spring 2013.

The pipeline within the Television business remains strong. New drama commissions include Klondike and Bitten as well as a second season of Saving Hope, a third season of Hell on Wheels and a fourth season of Haven. The reality and factual slates are also expanding with Devil you Know III. International sales continue to grow well, helped by the success of Primeval:New World and The Walking Dead.

Family had a successful period with Peppa Pig's US broadcast moving to the prime 6pm timeslot every day, improving viewership figures for the brand by more than 50% and demonstrating the commitment of our US broadcast partner Nick Jr. This follows Peppa Pig's successful first US toy campaign in Toys R Us over Christmas, with sales 25% above initial forecasts. Internationally Peppa Pig continues to strengthen, in markets such as Australia, Spain and Italy, while in the UK she remains the number one pre-school brand toy licensed property for the third year.

Distribution

As expected, Distribution revenues were down 4% year to date reflecting the decline in the physical home entertainment market in Canada offset by growth in the US where increased activity in the Group's US film business delivered higher volumes.

Financing

In conjunction with the Alliance acquisition, the Group completed a new US$430 million syndicated debt facility. The facility ensures that the business has access to increased funding over the next five years to support its growth plans. Adjusted net debt at 31 January 2013 was higher than the corresponding point in the prior year reflecting increased investment in content and the Alliance acquisition, and remained in line with management's expectations. Interim television production financing was up on the prior year reflecting increased production activity. Net assets were higher compared to the previous year reflecting the Alliance acquisition.

Notes to Editors:

About Entertainment One

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 US, the UK, Ireland, Spain, Benelux, France, Germany, Scandinavia, Australia, New Zealand and South Africa. 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 35,000 film and television titles, 2,700 hours of television programming and 45,000 music tracks.

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