DCD.L Regulatory News (DCD)

28 Jun 2005 12:35

28 June 2005 Digital Classics plc ("Digital Classics" or the "Company") Placing & Launch of DVD label Digital Classics plc is delighted to announce that it is to launch its own DVDlabel in time for this year's Christmas market. Digital Classics controlsrights in several hundred DVD titles, many of which it has hitherto licensed toother DVD labels for royalties.The Board believes that now is the ideal time to issue further titles under itsown label in order to receive the maximum benefit of the vast, globalyear-on-year growth in the DVD sector and the corresponding reductions in thecost of DVD production.Approximately one hundred further DVD rights will revert to Digital Classicsfrom 2007, adding to the proposed release programme. The Board believes thatthe effects of this are likely to make Digital Classics the world's marketleader in the classical music and arts sector within two years, with aprojected net return over the life of each title of more than five times whatis currently received.There are start-up costs attendant on this new venture, which the Company plansto meet out of a combination of existing working capital and by a placing ofnew shares.Accordingly, the Company has today raised approximately ‚£760,000, beforeexpenses, through a placing with investors of 95,000,000 New Ordinary Shares ata price of 0.8 pence per New Ordinary Share ("the Placing"). The New OrdinaryShares represent approximately 11 per cent. of the Company's enlarged issuedshare capital following the Placing.The Placing is conditional on the Admission of the New Ordinary Shares totrading on AIM of the London Stock Exchange. Application has been made for theNew Ordinary Shares to be admitted to trading on AIM and dealings are expectedto commence on 1 July 2005.Chief Executive Chris Hunt said, "This is an exciting opportunity to achievesignificantly higher returns on our properties by doing the whole jobourselves, rather than outsourcing to an external label. In light of the factthat, from 2007, nearly a hundred further rights will revert to us, this islikely to become an important source of revenue for us over the next fewyears."For further information please contact:Chris HuntChief Executive, Digital Classics plcTel. 020 7636 1400Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDDIGITAL CLASSICS PLC