PEL.L Regulatory News (PEL)

Paragon Entertainment Limited

Paragon launches leisure division

Paragon Entertainment Limited (AIM: PEL), the attractions design, production, fit-out and operations business, is pleased to announce the progress in its new division, Paragon Leisure, which licenses IP and distributes products into the leisure and attractions market.

The Leisure division has been independently positioned to take advantage of key third party intellectual property, licences and partnership & distribution agreements. This business unit will be steadily building a base of long term annuity-based licensees.

Since signing its first licensing agreement in 2012, Paragon Leisure has developed a portfolio of branded attraction concepts to license to owners and operators of visitor attractions, family entertainment centres (FECs) and play centres.

The division has recently added three branded attraction licenses to its portfolio: Yu Kids, Nerf and HiLo.

Yu Kids, is a unique Japanese soft play system which has already proven itself a huge hit around the world with both children and parents alike with over 350 centres now open in mainly Japan, US, Israel and South America. Paragon Leisure has the rights to represent Yu Kids in the UK, Europe, the Middle East and Russia.

In October 2012 Paragon announced it had concluded a licensing agreement with Hasbro International Inc. ("Hasbro") to design, build and operate Nerf branded attractions which will consist of purpose built Nerf action arenas and Nerf blaster target ranges. NERF is one of Hasbro's core global brands and one of the best-selling toys in the UK.

Hilo is a versatile, attractive and super-strong geodesic dome which can be utilised for a range of indoor and outdoor attractions. It can also be fitted out with Paragon supplied attractions, such as a high ropes course. The dome comes in a range of sizes and can be customised to make each dome distinctive."

Paragon Leisure managing director, Jonathan Beevers said:

"Paragon has the pedigree to attract world class brand partners and the ability to develop those brands into instantly recognisable and universally appealing attraction concepts. We create attraction experiences that are both compelling and unique whilst packing the punch of a well-known and trusted brand."

"These branded attractions create dynamic experiences which differ from anything that is already out there. They will help to add value to any malls, leisure attractions and theme parks that want to animate themselves, refresh their current offering and attract additional footfall."

Mark Pyrah, Chief Executive Officer commented:

"Paragon is excited by the opportunity within the Leisure division, which was part of the strategic vision presented to shareholders during 2013. Paragon is working alongside brands with genuine worldwide appeal, which offers material end-market potential and long term growth. This has low working capital requirements."

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Notes to Editors:

Paragon Entertainment Limited (AIM:PEL) is an award winning provider of attraction services from initial design and production through to the direct operation and development of themed attractions.

It is the holding company for:

§ Paragon Creative Limited, a visitor attraction design, production and fit-out business;

§ Paragon Communications, who provides graphic design and marketing services; and

§ The Visitor Attraction Company (TVAC), an attraction consultancy, feasibility and operations company.

The Group's projects have included:

§ The design and build of the Titanic exhibition, Belfast's new £97 million visitor attraction;

§ The build of the Wallace and Gromit ride at Blackpool Pleasure Beach;

§ Through licensing agreement with Hasbro, the design, build and operation of several Nerf attractions;

§ Acting as the lead thematic and interactive contractor for the Florya Aquarium in Istanbul.

The Group listed on AIM in 2011.

Further information can be found at: http://www.paragonent.com/