Entertainment Rights Announces 2006 Results

LONDON, March 27: Entertainment Rights (ER) has released its
preliminary results for the year that ended December 31, 2006.

Highlights of the results include: an increase in operating
profit of 36 percent to £10.2 million, compared to £7.5 million in 2005; an
increase in adjusted EBITDA of 13 percent to £15.5 million, compared to £13.7
million in 2005; an improved business mix resulted in the gross profit margin
increasing to 57 percent compared to 46 percent in 2005.

Business transactions during 2006 included the acquisition
of U.S.- based Classic Media Holdings, announced in December 2006 and completed
in January 2007; and the acquisition of the publishing property Where’s
Wally? in January 2007.

Also in 2006, four signature ER shows—Postman Pat, Rupert Bear—Follow the Magic,
The Basil Brush Show, and Jim
Jam & Sunny—aired on major
broadcast television channels: the BBC, Five and ITV.

Postman Pat will
debut on the U.S. network qubo in
October 2007, and 3-2-1 Penguins!,
from the recently acquired Classic Media, has been commissioned by qubo to air in the fall of 2007.