Marwyn Investment Management LLP: Acquisition of Entertainment One Group, Proposed Placing and Admission of the Enlarged Share Capital to Trading on AIM

LONDON--(CCNMatthews - February 14, 2007) - Marwyn Investment Management LLP ("Marwyn") today announces that Earl Street Capital Ltd ("The Company"), a company established for the purpose, has entered into a conditional agreement to buy the entire operating business of Entertainment One Income Fund ("Entertainment One"), a major distributor and producer of home entertainment products in North America, for a total consideration of approximately CAD188 million (£83 million), including estimated net debt of CAD68 million. Entertainment One Income Fund is currently listed on the Toronto Stock Exchange (TSX: EOF-UN). The Company today also announces that it proposes to raise approximately £80 million (approximately CAD186 million) of equity by way of a placing. The net proceeds of the placing, together with debt facilities underwritten by TD Bank, will be used to fund the cash consideration for the acquisition (including the costs), to provide additional working capital to the business and to provide the business with initial funds with which to pursue its acquisition strategy. Highlights /T/ -- Recommended offer equivalent to approximately CAD3.60 per unit represents 33% premium to the closing price of the units on 13 February 2007, reflecting Marwyn's confidence in Entertainment One's future growth prospects -- Closing subject to unitholder approval expected to be no later than 30 March 2007 -- Irrevocable undertakings have been received from 48% of unitholders -- Entertainment One is the number one wholesale distributor of DVDs, CDs and video games in Canada as well as a leading independent wholesale distributor in the US -- Entertainment One distributes across the entertainment value chain including distribution to conventional retailers and online retailers as well as digital distribution of recorded music through download services such as iTunes -- Entertainment One owns an established content and rights business incorporating exclusive licensing of third party filmed entertainment content in the US and Canada and the largest non-major independent record label in the US -- The current management team will continue to run and build the business going forward -- Further complementary acquisitions have been identified in North America and Europe -- Proposed placing of £80 million of equity financing underwritten by Collins Stewart Europe Limited ("Collins Stewart") and Marwyn -- It is intended that on closing the Company will be floated on the Alternative Investment Market of the London Stock Exchange /T/ James Corsellis, Managing Partner of Marwyn Investment Management LLP, said: "Marwyn sees a unique opportunity to create value in global entertainment distribution and we have been actively seeking to enter this exciting sector. Entertainment One's leading market positions and established relationships in North America represent a strong foundation on which to build a leading global entertainment content owner and distributor. We look forward to supporting Darren Throop and his team in the execution of its strategy of increasing content ownership, expanding into new markets and exploiting the growing demand for digital distribution." Marwyn and the Company were advised by TD Securities Inc. and Collins Stewart Europe Limited. Advisers also included Oslers, Hoskin & Harcourt LLP, Mayer Brown Rowe & Maw LLP, Deloitte & Touche LLP and The Salter Group. About Marwyn Investment Management LLP Marwyn Investment Management LLP ("Marwyn") is a London-based hedge fund investor specialising in sourcing and then investing alongside experienced management teams with buyout and consolidation strategies. Marwyn makes its investments through both public and private special purpose acquisition vehicles and is backed by some of the world's leading investment institutions including GLG, BlueCrest, Orn Capital, Fidelity, GAM and Canada Life. The Marwyn team have carried out over £800 million in acquisitions since September 2004 in sectors including environmental services, insurance, leisure, gaming and food.

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