r4e granted 17% shareholding in digital platform

23 January 2014

reach4entertainment enterprises plc

('r4e')

r4e granted 17 per cent shareholding innew digital theatre and arts entertainment platform

r4e, the transatlantic media and entertainment marketing company, today announces that it has been granted a 17 per cent shareholding in Stage17 Incorporated ('Stage17') in lieu of support provided by r4e to Stage 17 during its development.

Stage 17 is a rich digital platform that will deliver a range of Broadway and arts related entertainment content. Content will include original and curated video entertainment programming, aimed at a target audience (25-54 year old, primarily female demographic with a demonstrated interest in theatre and the arts), for whom quality, originality, ease of use and sense of community are paramount.

Stage 17, which has been funded and developed by Stoller Family Partners, of which David Stoller, Executive Chairman of r4e is a general partner, will launch in the first half of 2014, although a teaser trailer can be viewed now at http://www.stage17.tv/preview. Its initial focus will be on the North American market. In the short to medium-term, Stage 17's strategic goal is to monetise its offering through a combination of digital advertising, premium membership subscriptions and e-commerce that will be integrated into its digital platform.

r4e will be a preferred supplier of advertising services, marketing and technical support to Stage 17.

As David Stoller is a director of r4e, the Stage 17 transaction is deemed to be a related party transaction under the AIM Rules. As such, the independent directors of the Company, being Richard Ingham and Marcus Yeoman, having consulted with Cantor Fitzgerald Europe, believe that the terms of the Stage 17 transaction are fair and reasonable in so far as the shareholders are concerned.

David Stoller, Executive Chairman, r4e, said:

"Stage 17 has enormous potential to fill the gap in digital theatre and arts entertainment services for what is a vast addressable market. It is estimated that the target demographic community - primarily individuals aged 25-54 with a demonstrated interest in theatre and the arts - for Stage 17 stands at 136 million in the USA, the UK and Australia alone.

"The combination of a very substantial target market and the growing trend of digital advertising spend which, in the USA alone, amounted to $40 billion in 2013 and is forecast to grow to around $100 billion by 2017, presents a very exciting business opportunity.

"This initiative complements the current service offering from r4e's market leading theatre and entertainment branding, design and advertising agencies, presenting an additional and alternative route to market for them to promote their current clients and develop new digital entertainment and media clients generating additional revenues, whilst also offering further exciting opportunities for additional digital platforms and new strategic partnerships."

Ends

Enquiries:

reach4entertainment +44 (0) 20 7968 1655

David Stoller, Executive Chairman

Sarah Hall, Chief Operating Officer

Blythe Weigh Communications +44 (0) 20 7138 3204

Paul Weigh +44 (0) 7989 129658

Eleanor Parry +44 (0) 7551 293620

Cantor Fitzgerald Europe +44 (0) 20 7894 7000

Mark Percy (Corporate Finance)

David Banks / Paul Jewell (Corporate Broking)

Allenby Capital +44 (0) 20 3328 5656

Katrina Perez/Kelly Gardiner