Βι¶ΉΤΌΕΔ

Βι¶ΉΤΌΕΔ Worldwide today announces that it has concluded negotiations with the administrators of Woolworths over 2|entertain.

This move conclusively secures 2|entertain's future, bringing to a close a sale process which began in late 2008. It ends a period of uncertainty, triggered by the collapse of Woolworths, and ensures that consumers can continue to enjoy their favourite Βι¶ΉΤΌΕΔ titles on DVD and Blu-ray, as well as protecting the investment made by Βι¶ΉΤΌΕΔ Worldwide in 2|entertain over the past six years.

2|entertain was created in September 2004 as a 60:40 joint venture with Woolworths, combining the former VCI video/DVD, music and TV production business with Βι¶ΉΤΌΕΔ Worldwide's video publishing arm. It publishes popular DVD titles such as Gavin & Stacey, Doctor Who, Top Gear and Fawlty Towers and distributes product in over 60 territories worldwide, including North America, Australia and Japan. The global appeal of natural history series Planet Earth saw the company sell almost seven million units of the title globally, becoming the biggest-selling factual HD DVD in the US along the way.

The agreed price of Β£17m for the purchase of an outstanding 40% minority stake in 2|entertain has been funded from existing cash at Βι¶ΉΤΌΕΔ Worldwide, which has no access to licence fee income. This consideration represents the fair value of the stake as agreed between Βι¶ΉΤΌΕΔ Worldwide and the administrators of Woolworths, following the insolvency of Woolworths and the subsequent exercise by Βι¶ΉΤΌΕΔ Worldwide of its right to acquire the outstanding shares in 2|entertain.

John Smith, CEO, Βι¶ΉΤΌΕΔ Worldwide, said: "I am pleased that we have finally concluded these negotiations, and have secured the future of 2|entertain. This comes as good news for a variety of stakeholders. 2|entertain's retail partners know it is now backed by a stable owner. Consumers can continue to enjoy Βι¶ΉΤΌΕΔ content on DVD in their own homes. The independent production sector already works closely with 2|entertain. And licence fee payers will continue to benefit from 2|entertain's contribution to Βι¶ΉΤΌΕΔ Worldwide, which helped us return a total of Β£153m to the Βι¶ΉΤΌΕΔ in the last financial year."

Paul Dempsey, CEO of 2|entertain and Managing Director, Βι¶ΉΤΌΕΔ Worldwide Βι¶ΉΤΌΕΔ Entertainment, said: "The 2|entertain business has not been distracted by the events of the past 18 months, continuing to deliver impressive results. Under full Βι¶ΉΤΌΕΔ Worldwide ownership, it now looks forward to a more settled period and playing an important role in Βι¶ΉΤΌΕΔ Worldwide’s future plans."

NOTES TO EDITORS
About 2|entertain
2|entertain is the UK's leading independent publisher of video and music, with a broad portfolio across all genres of music and video. A global entertainment player, 2|entertain consists of three divisions: 2|entertain video, Demon Records and Banana Split Productions. 2|entertain was created in September 2004 as a joint venture with Woolworths Group, combining the former VCI video/DVD, music and TV production business with Βι¶ΉΤΌΕΔ Worldwide's video publishing arm. 2|entertain was awarded with the Queen’s Award for Enterprise in April 2008.

Βι¶ΉΤΌΕΔ Worldwide was advised by Nomura International and Olswang.

2|entertain Fact Sheet

• 2|entertain is the UK's leading independent publisher of video and music, with a broad portfolio across all genres of music and video. independent publisher of video and music, with a broad portfolio across all genres of music and video.
• A global entertainment player, 2|entertain consists of three divisions: 2|entertain video, Demon Records and Banana Split Productions.
• 2|entertain was created in September 2004 as a joint venture with Woolworths Group, combining the former VCI video/DVD, music and TV production business with Βι¶ΉΤΌΕΔ Worldwide's video publishing arm.
• The aim was to create a scale business which would stand up well against the strength of the major global studios, allowing Βι¶ΉΤΌΕΔ Worldwide to ensure its video properties and talent benefitted from access to global markets.
• 2| entertain sold 14.6 million DVDs in 2009, which equates to 28 2|entertain DVDs sold every minute. In 2009 2|entertain's market share was up year on year, achieving an 8.6% value share; which rose to 10.5% in Q4 making 2|entertain the 4th biggest DVD distributor in this period (above Paramount, Sony and Disney). 2|entertain is the leading TV DVD publisher, achieving a value share of 26.5% and volume share of 31.8% for 2009.
• 2|entertain also publishes video titles internationally. Responsible for extending the global reach of British programmes from Top Gear to Doctor Who, 2|entertain distributes product in over 60 territories worldwide, including North America, Australia and Japan. The global appeal of the phenomenal natural history series, Planet Earth, has resulted in almost 7 million units being sold worldwide and is one of 2|entertain's all time best-selling international properties.
• 2|entertain is one of only a handful of companies within the field of entertainment to be recognised for its contribution to international trade by the Queen's Awards in the past few years. (awarded in 2008)
• Key Βι¶ΉΤΌΕΔ titles include Planet Earth, Doctor Who, Gavin & Stacey, Top Gear, Outnumbered and archive classics such as Fawlty Towers, Blackadder and Only Fools and Horses.
• 2|entertain also commissions straight to DVD titles such as Clarkson's Duel, and distribites non-Βι¶ΉΤΌΕΔ titles including Benidorm, Primeval and Ross Kemp.
• Bestsellers for Demon Music at present are the 100 Hits Range and Music Club Deluxe.
• 2|entertain contributed Β£28.6m in 2008/09 to Βι¶ΉΤΌΕΔ Worldwide profits, with sales of Β£176.4m in this period.

Philip Fleming