ER Confirms Buyout Speculation

LONDON, January 22: Entertainment Rights has confirmed that
it is in early takeover discussions, after having been approached by several
private-equity firms.

British press reports indicate that the company is being
eyed by Haim Saban as well as by private equity firm 3i, which owns Chorion, a
company that ER once attempted to acquire.

"The board of ER notes the recent press speculation and
the movement in the company's share price and confirms it is in preliminary
talks which may or may not lead to an offer being made for the company,"
ER said in a statement. "There can be no certainty that an offer will be
made for the company or the terms on which such an offer may be made."

The company, home to brands like Postman Pat and Rupert Bear, has expanded considerably in the last few years, acquiring New
York-based Classic Media at the end of 2006.

—By Mansha Daswani