Stmnt UK DVD Manufacturing

RNS Number:6338L
Entertainment Rights PLC
11 January 2008


                            Entertainment Rights Plc

                        ("ER", "the Company" or "Group")


                    STATEMENT REGARDING UK DVD MANUFACTURING


Entertainment Rights Plc (LSE: ERT) The Board of Entertainment Rights Plc wishes
to update shareholders in relation to the manufacture and supply of DVD's to UK
retailers.


In the UK, ER releases its home entertainment titles under its own label, Right
Entertainment, through an exclusive sales and distribution agreement with
Universal Pictures (UK) Limited ("UPUK"), a company associated with Universal
Pictures International Entertainment Limited ("UPIE"). UPUK has been the
distributor of ER's home entertainment product in the UK since June 2001. The
services provided to ER under the terms of the agreement include full logistics
services in relation to manufacturing and distribution of DVDs.


In November 2006, UPIE announced that European DVD manufacturer, ODS had been
awarded a contract to provide a DVD manufacturing service to UPIE comprising
full service distribution, including complete supply chain management and
physical distribution to retailers.


During October and November 2007, UPUK notified ER that they were encountering
issues with the replication and distribution of DVDs due to problems with ODS.
UPUK notified ER that it would take all available actions to ensure that the
issues were resolved in order to avoid any impact to the release and sale of
ER's DVD titles during the key fourth quarter. ER responded by instructing UPUK
to manufacture additional units however despite these actions, it has become
apparent that the supply of DVD units was not fulfilled in full and agreed
release dates were not met. During November and December 2007, the impact of the
issue, if any, could not be assessed due to a lack of accuracy and timeliness in
the information provided to ER by UPUK.


ER had estimated that turnover from UK home entertainment sales in November and
December 2007 would be £6m at a margin of 59%. At this stage, it is too early to
reliably quantify the actual impact on the 2007 full year results pending
receipt of reporting from UPUK. The Board will continue to keep shareholders
updated as appropriate.


Mike Heap, CEO, Entertainment Rights Plc, commented: "It is very disappointing
that UPUK encountered these issues with its supplier however we have received
assurances from UPUK that this is a short term issue that is in the process of
being resolved. Once ER is in a position to assess the impact of the issues
encountered in late 2007, we will consider pursuing appropriate remedies for any
losses incurred."


                                     -ends-


Enquiries:


Entertainment Rights plc

Mike Heap, Chief Executive Officer

Elizabeth Gaines, Chief Finance and Operations Director

Simon Avis, Head of PR                                             020 8762 6200


Bell Pottinger Corporate & Financial

David Rydell / Amy Rajendran / Helen Tarbet                        020 7861 3232







About Entertainment Rights:

   * Entertainment Rights Plc ("ER") is the UK's leading global media group
    specialising in the ownership of high quality children's and family
    programming, characters and brands
   * ER owns or controls the rights to many global characters including Basil
    Brush(R), Postman Pat(R), Jess the CatTM, Little Red TractorTM, Rupert Bear
    (R), He-Man(R) and the Masters of the Universe(R), Fat Albert and the Cosby
    kidsTM, She-Ra(R), and Jim Jam & SunnyTM
   * In January 2007, ER acquired Classic Media, the US-based owner of an
    extensive portfolio of children's and family characters and brands including
    Lone Ranger, Lassie, Rudolph the Red-Nosed Reindeer, Casper the Friendly
    Ghost and George of the Jungle
   * As part of the Classic Media acquisition, ER acquired Big Idea
    Productions Inc. Big Idea is the leading creator, producer and owner of
    faith based programming in the US and is best known for its award-winning
    VeggieTales animated series which, to date, has sold over 50 million DVD/VHS
    units in the US
   * Where's Wally(R), the worldwide publishing phenomenon, joined the ER
    stable of brands in January 2007. Where's Wally(R) presents significant
    opportunities as a multi media property. ER will create new animated and
    live action content with multi-platform application to launch worldwide in
    2008/2009
   * Since 1999, when ER owned rights to just 39 episodes of programming,
    ER's library has grown to circa 8,700 episodes of high quality children's
    and family characters and brands. This includes certain rights to global
    brands such as Mattel's BarbieTM, Scholastic's CliffordTM and Hasbro's
    TransformersTM
   * ER's wholly owned subsidiary Tell-Tale Productions, created and produced
    The Tweenies, one of the UK's most successful pre-school brands
   * ER has grown rapidly. Annual revenues have increased from £1.8m in 1999
    to £29.7m in 2006, the last reported financial year


Visit www.entertainmentrights.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCBUGDBXSBGGIB