Pre-close trading update

Entertainment One Ltd.

Pre-close trading update

Prior to entering its close period, Entertainment One Ltd. (LSE:ETO), the international entertainment group, is pleased to announce the following update for the financial year ended 31 March 2013:

§ A strong fourth quarter which benefitted from Alliance revenues, following completion of the acquisition in January

§ Group reported revenues expected to be over 15% higher than prior year (including Alliance revenue for the period since acquisition)

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

Overview

The Company has had a strong fourth quarter and expects results for the financial year to be in line with management expectations. This was supported by the acquisition of Alliance Films Holdings Inc. (Alliance) which completed on 8 January 2013. The integration of the two businesses is proceeding ahead of schedule with synergies being delivered more quickly than originally anticipated.

The Group's Film and Television slates for the coming year will benefit from an increase in investment in content, supported by the strength of the Group's balance sheet and improved operational cash flow, as well as the increased reach provided by Alliance.

Film

Reported Film revenues expected to be significantly ahead of the prior year, driven by over 200 theatrical releases (including more than 25 Alliance titles since acquisition) compared to 152 releases in the prior year. This growth has already generated a 61% increase in box office receipts year-on-year, to the end of February. Successful titles included The Twilight Saga: Breaking Dawn Part 2, The Impossible, Nativity 2, Quartet, and Django Unchained.

The Group plans to release over 275 films theatrically during the next financial year, including The Hunger Games: Catching Fire, RED 2, Now You See Me, and Ender's Game.

Current year revenues from the Group's distribution activities are expected to be broadly flat on the prior year. This reflects 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 has delivered higher volumes. The Alliance acquisition will drive efficiencies in the Group's home entertainment distribution activities in Canada and deliver cost savings to the Group's film supply chain.

Television

The Television business is expected to deliver around 290 half-hours of programming in this financial year, compared to 237 in the prior year, driving an anticipated increase in revenue of approximately 15%. The most significant production deliveries included the fourth seasons of Call me Fitz and of Rookie Blue, as well as new commission Rogue to DirecTV, which will broadcast in spring 2013.

The pipeline within the Television business remains strong and the Group will present its strongest ever slate of titles for the upcoming annual MIPTV market in Cannes, including pre-sales for Klondike, Discovery Channel's first-ever scripted mini-series.

Family has had a strong year with Peppa Pig maintaining its status as the #1 pre-school toy licensed property in the UK, and rolling-out in numerous international markets. Successful launches have taken place in Australia, Spain, Italy and the US, where they have achieved above forecast sales, and many more territories are planned, including South East Asia, Russia, Latin America and the rest of Europe.

Financing

Adjusted net debt at the year end is expected to be in line with management expectations, and up on the prior year primarily reflecting the debt funding for the Alliance acquisition.

Results for the financial year ended 31 March 2013 will be announced on 21 May 2013.

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, South Africa and South Korea. 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].