Genius Products Announces Agreements With ER, Classic Media

LONDON/SANTA MONICA, January 8: Genius Products has reached long-term
agreements with Entertainment Rights (ER) and Classic Media, which ER is in the
process of acquiring, for the distribution, co-production and co-financing of
home video and video game productions for family, children and teen markets.

Under the multi-year distribution agreements, Genius
Products will distribute in North America home video and certain digital media content
from ER’s and Classic’s libraries of over 4,000 programs. These include including
Lassie, Fat Albert, Postman Pat, Rupert Bear and best-selling holiday specials like Rudolph the Red-Nosed
Reindeer, Frosty the Snowman and Santa
Claus is Comin’ to Town. Genius will also
acquire home video and digital distribution rights in new productions including
The Lone Ranger, Gumby and She
Ra.

“We are very excited about the new partnerships with ER and
Classic Media,” said Trevor Drinkwater, the president and CEO of Genius
Products. “The economic model associated with the new agreements is a great fit
for our business and is expected to add approximately $75 million in annual
gross revenues and should further enhance our operating margins.”

"These agreements
offer an unprecedented opportunity to distribute the characters and brands of
ER and Classic throughout North America, creating one of the leading portfolios
of contemporary classic and new children's DVD’s and digital rights in the
world,” added Mike Heap, the CEO of Entertainment Rights. “We will be
introducing North America to some of our leading characters for the first time
and will, once Classic becomes part of the ER Group, be exploiting Classic’s
content to ensure the best placement possible in the world’s largest media
market—the U.S.—and will expand our brand recognition as we sell
merchandise through American retailers.”

Additionally, ER, Classic and The Weinstein Company, which
co-owns Genius Products, will co-produce and co-finance new animated children’s
productions like Gumby, Kung Fu Magoo and
Lone Ranger. North American home video and digital distribution
will be handled by Genius. ER will represent the properties internationally.