New Chief for ER

LONDON, December 8: Entertainment
Rights has named Deborah Dugan as its CEO, effective immediately, replacing
departed chief executive Nick Philips.

Dugan has served as the
president and CEO of the company's U.S. arm since April 2007. Prior to this,
she was the president of Disney Publishing Worldwide.

The company also announced
the resignation of Jane Smith, the chief creative and commercial director, as
well as her departure from the board, with immediate effect. Smith has been
with Entertainment Rights since December 1999. Meanwhile, Paul Ashworth, the
group financial controller, takes over from Irvin Fishman as company secretary.

In other news,
Entertainment Rights has reached an agreement with its principal lending bank,
HBOS, for additional lending facilities of £13 million. The funds will cover
potential cash shortfalls in the period up to the end of February next year.
The facilities replace the previously announced £1 million increase in
short-term working capital facilities. Discussions with HBOS regarding longer
term funding arrangements are still in progress.

Early indications are that
customers will be taking delivery of stock later than is usual in the Christmas
trading period for Entertainment Rights. The company's cost reduction program
is said to be progressing well, and the workforce, which stood at 150 at the
end of October, should be reduced by one third to around 100 by the end of the
year. This will achieve its targeted £5 million annualized cost savings.

In regard to the collapse
of Woolworths, the retailer still owes Entertainment Rights nearly £800,000.
Should this sum, or part of it, prove irrecoverable, the impact will be
registered in spring 2009, and would be offset by savings in royalty payments
to rights owners of £300,000.

Rod Bransgrove, Entertainment
Rights's chairman, said, "Our strengthened financial position, streamlined
organization and new management are all vital steps forward in restructuring
the company. Deborah Dugan is a highly distinguished chief executive whose
industry knowledge and contacts will prove extremely effective in taking the
company forward. Deborah's extensive global experience and her deep knowledge
of the U.S. entertainment business, our largest geographical market, position
us well for growth. Together with our recently appointed chief financial
officer, Edward Knighton, I am confident that we now have the right executive
team in place to take us to the next level."

—By Kristin
Brzoznowski