PEL.L Regulatory News (PEL)

Paragon Entertainment Limited

Paragon secures location for first attractions

Paragon Entertainment Limited (PEL) ("Paragon"), the AIM-listed attractions design, production and fit-out business, is pleased to announce that it has entered into agreements with Westfield securing space to launch its first set of 'Quest' attractions in Westfield's Merry Hill Shopping Centre.

Under the terms of the agreements, Paragon has entered into a series of 2-5 year leases covering in excess of 20,000 square feet in Westfield's Merry Hill Shopping Centre, comprising shop units, an indoor atrium and external space, to create a new and innovative leisure area. This is in line with Paragon's objective to develop a portfolio of diversified family attractions in high footfall locations; Merry Hill Shopping Centre currently attracts over 23 million visits per year and is therefore an ideal site.

Merry Hill Shopping Centre, which is the largest retail development in the West Midlands, is owned by the Westfield Group, one of the largest global shopping centre owners and developers, with five centres in the United Kingdom and over 100 globally. The centre currently has over 250 retail units with a strong family profile within the catchment area.

Paragon's intention is to design, build, install and operate up to five, co-located attractions along with complementary retail and services. The total investment will be around £1 million and Paragon will operate the attractions under its 'Quest' brand. Attraction openings are expected to be phased starting in November 2012 and Paragon looks forward to updating shareholders and prospective visitors with specific details shortly.

CEO Comment

Mark Pyrah, CEO of Paragon Entertainment, commented: "Since Paragon was admitted to AIM in December 2011, the design, build and operation of proprietary and licensed branded attractions has been one of our core strategic priorities. We are therefore delighted to have not only secured our first site but to have been able to agree a site large enough to support a number of unique attractions, creating a comprehensive leisure destination. We are also very excited to open our first proprietary attractions within a Westfield site and we look forward to developing this relationship over the coming years."

Westfield Comment

Bill Giouroukos, Director of Operations Westfield, commented: "We are excited to welcome Paragon into our Merry Hill Shopping Centre and look forward to working closely together. Westfield is committed to providing activities that enhance the customer experience and make our centres real destinations. Paragon has outlined a unique and innovative offering to place within Merry Hill, which further establishes the centre as a family centric leisure destination."

21 September 2012

Ends

For further information please contact:

Ivonne Cantu / Max Hartley (Nomad)

Alex Aylen / Julian Morse