DCD Acquires Three Independent Production Companies

LONDON, July 11: The British television producer and
distributor DCD Media has acquired three independent television production
companies: Prospect Pictures, September Holdings and West Park Pictures.

DCD Media has conditionally agreed to acquire the entire
issued share capital of each of the three companies for a combined
consideration of approximately £19.1 million, comprising of £9.37 million in
cash, £0.18 million in loan notes and £9.55 million in new ordinary shares.

The acquisitions are a part of the company’s strategy to
shift its focus towards production from the distribution of program content for
TV. Prior to these acquisitions, DCD Media purchased NBD Television and Box TV
in late 2005, which were followed in February 2006 by the acquisition of Done
and Dusted Group. In addition, the new acquisitions are also in line with the
company’s strategy to make further acquisitions within other genres, including
lifestyle and factual production.

Prospect Pictures is a producer of lifestyle entertainment
such as Daily Cooks and Saturday
Cooks. It mainly produces weekday
mid-afternoon entertainment programs comprised of cookery and other lifestyle
television. The total consideration for the acquisition is £7.05 million.
September Holdings, headed by David Green, is known for producing popular
factual entertainment such as Hollywood Lives and Bridezillas, which is currently in its fourth season on the WE network in the U.S.
The total consideration for the acquisition is £9.06 million. West Park
Pictures produces documentary content with an international flavor, and has
established a long-term contract with U.K. presenter Stephen Fry. The total
consideration for the acquisition is £2.96 million.

Chris Hunt, the chief executive of DCD Media, commented:
"The joining together of these newly acquired production businesses with
our existing subsidiaries will mean that DCD has a significant presence across
a wide variety of television: drama, arts, musical entertainment, popular
factual entertainment, lifestyle and documentaries. These deals are all
earnings accretive; we anticipate that this will be enhanced as the newly
acquired businesses' growth as part of our group will be significant. There is
little doubt that as a result we will begin to get on the radar of the larger
media players as measured by turnover and we expect that DCD will now climb
well into

the top ten U.K. independent producers."