Seven Arts Entertainment Inc.,An Independent Motion Picture Company

LOS ANGELES, CA--(Marketwire - Nov 22, 2011) - Seven Arts Entertainment Inc. (the "Company" or "Seven Arts") (NASDAQ: SAPX) announced today its result of operations for the quarter ended September 30, 2011, its first quarter of its fiscal year ended June 30, 2012. The Company reported an increase in stockholder equity to $14,632,642, representing the majority of the increases in stockholder equity announced in the Company's letter to stockholders of November 3, 2011. This compares with stockholder equity at the end of the last fiscal year of $7,958,150. The Company's loans payable also reduced from $12,645,680 at the end of the last fiscal year to $7,957,466 as of September 30, 2011. The Company also announced a loss of the quarter of $983,291 on limited revenues of $592,541 compared to a loss of in the quarter ended September 30, 2010 of $747,440 on revenue of $100,305. As of today, the Company's shares outstanding increased to 15,700,000 from the 12,500,000 announced recently principally by the issuance of unregistered shares to Seven Arts Pictures plc, the Company's NASDAQ listing predecessor, which shares are not freely tradable and will not be included in the current public float.

Peter Hoffman, Chief Executive Officer of Seven Arts, stated: "We are pleased by the continuing growth in stockholder equity and reduction of loans outstanding as we recently announced. The operating loss for the quarter ended September 30, 2011 was expected and does not represent management expectations for the balance of the fiscal year. We anticipate substantial fee income and additional film revenue particularly in the second half of the fiscal year. The Company is making expected progress toward the goals set forth in our recent stockholder letter.

"In particular, we have made substantial progress in arranging the financing for our upcoming production of 'Neuromancer,' based on William Gibson's landmark novel, to be directed by Vincenzo Natali. We expect announcements soon of the attachment of major creative elements to this exciting production. We have entered into and expect shortly to close an acquisition of the music assets of David Michery, including the major recording artist DMX, to add to our acquisition of Big Jake Music, which we anticipate closing shortly. We expect major developments in our business in the balance of our fiscal year."

Seven Arts Entertainment, Inc.
Summary Data Table
			Three Months Ended September 30, 2011				Three Months Ended September 30, 2010 (*)
Total Revenue			$	592,541			$	100,305
Cost of Revenue			$	479,144			$	76,694
Gross Profit			$	113,397			$	23,611
Operating Expenses			$	681,885			$	350,479
Income (Loss) from Operations			$	(568,488	)		$	(326,868	)
Net Interest Expense			$	(413,800	)		$	(420,654	)
Income (Loss) Before Taxes			$	(982,288	)		$	(747,522	)
Provision for Taxes			$	0			$	0
Foreign Exchange Translation Gain (Loss)			$	(1,003	)		$	82
Net Income (Loss)			$	(983,291	)		$	(747,440	)
Weighted Average Common Shares Used in Earnings/(Loss) per Share Calculation:
	Basic (in 000's)			7,016				1,555
	Diluted (in 000's)			7,016				1,555
Earnings/(Loss) per Share - Basic			$	(0.14	)		$	(0.48	)
Earnings/(Loss) per Share - Diluted			$	(0.14	)		$	(0.48	)
Balance Sheet Data				September 30, 2011				June 30, 2011
Total Assets (in 000's)			$	27,291			$	27,945
Total Loans Payable (in 000's)			$	7,957			$	12,646
								coming soon Men Don't Lie about us more > We are an independent motion picture production company engaged in developing, financing, producing and licensing theatrical motion pictures with budgets in the range of $2 million to $60 million for exhibition in domestic (i.e. the United States and Canada) and foreign theatrical markets and for subsequent post-theatrical worldwide release in other forms of media, including DVD, home video, pay-per-view, and free television. Contact Designed by 6LAB Seven Arts Entertainment Inc. - A registered company of the United Kingdom United Kingdom 136-144 New Kings Road - London SW6 4LZ - United Kingdom Phone : +44 20 3006 8222 - Fax : +44 20 3006 8220 Los Angeles 8439 Sunset Boulevard- Fourth Floor - Los Angeles, CA 90069 Phone : +1 323 372 3080 -Fax: +1 323 372 3088 Email : info@7artspictures.com