Entertainment One Takes Control of Contender Entertainment

LONDON, June 14: Entertainment One, a distributor of home
entertainment products in North America, has conditionally agreed to acquire
the U.K.’s Contender Limited and its Contender Entertainment Group subsidiary
for £49.4 million in cash and shares.

Contender Entertainment Group is a rights ownership and
exploitation business and is the leading independent distributor of content on
DVD in the U.K. Its core business is the acquisition and exploitation of DVD
distribution rights from third-party producers. Through its division Contender
Films, the business acquires theatrical distribution rights to features.
Through its licensing and distribution divisions, Contender also exploits its
children's content developed and produced by the in-house creative team of
Rubber Duck Entertainment. Its main titles are Tractor Tom and Peppa Pig.

Current management team led by Richard Bridgwood will remain
in place. Entertainment One’s strategy is to build a leading international
entertainment content ownership and distribution business. Darren Throop, the
CEO of Entertainment One, said: “The acquisition of Contender is our first
major acquisition in Europe. It adds to our existing U.S. and Canadian
operations and is a significant step in delivering our strategy of building a
leading independent international entertainment content owner and distributor.
I am pleased to welcome Richard Bridgwood and his team into the group and am
excited about the opportunity to work with them going forward to execute on our
strategy."

Richard Bridgwood, the managing director of Contender,
added: “This deal enables Contender to continue its strong growth as part of a
larger multi-territory group while retaining the existing highly successful
management and staff in place. It will enable us to enhance still further our
service levels to our customers and is a logical next step in the company’s
evolution. We are delighted to be a core part of the exciting future that
Entertainment One promises.”