PWS.L Regulatory News (PWS)

Pinewood Shepperton plc

Pinewood signs Chinese Joint Venture Agreement

Pinewood Shepperton plc ("the Company" or "Pinewood"), a leading provider of services to the global film and television industry, today announces that the Group has entered into a 50:50 Joint Venture Agreement with Seven Stars Media Limited ("Seven Stars"), part of one of China's leading private media groups which provides content creation and distribution, media services and events.

The joint venture, to be called "Song Lin", initially will assess a number of business proposals in the growing entertainment market in China. Under the terms of the joint venture, Pinewood will provide its expertise with limited capital investment. The proposals include:

1. providing co-production opportunities for film and television producers;

2. the creation of film and television diploma courses to be delivered by UK educational institutions in Beijing, Tianjin and four other cities

3. developing the production financing and related services for Chinese film and television productions;

4. a series of film themed entertainment venues in Shanghai and regionally; and

5. creating film themed projects in Beijing, Shanghai and Wuhan.

Seven Stars is one of the largest and fastest growing media conglomerates in China, with operating subsidiaries and joint ventures in Hong Kong, Europe, UK and the United States, and its founder and Chairman Bruno Wu has been a leading figure in the international entertainment industry for over a decade.

Prime Minister David Cameron said:

 "It's great to see Pinewood Studios expanding its business with the announcement of its joint venture with Seven Stars Media. The creative industries are a rapidly growing area of China's economy and will increasingly provide huge opportunities for UK companies competing in the global race. Pinewood is leading the way, taking advantage of China's thriving entertainment and media sector and building on Britain and China's growing trade relationship."

Ivan Dunleavy, Pinewood CEO, said:

"The Chinese market for content is the fastest growing in the world and taking Pinewood's experience and skills to that market in partnership with such an established and successful local partner is a truly exciting prospect. The joint venture brings together two companies with significant experience and will provide a conduit for film and television productions to maximise their impact in China. The partnership with Seven Stars, under Bruno Wu's direction, represents a strategic step forward for Pinewood's international development. If successful, the joint venture could provide significant opportunities for UK film and television producers."

Bruno Wu, Seven Stars Chairman and CEO said:

"Together with Pinewood, we have identified a significant number of business opportunities for the short, medium and long term. The joint venture will aim to improve the standard of media production, create co-production opportunities for Chinese producers and export Chinese film and television content overseas. Our local knowledge and scale combined with Pinewood's unique operational skills and international reputation will enable our joint venture to participate in China's content explosion."

The Chinese entertainment and media market is worth $137,458 million and is predicted to grow to $192,516 million by 2016. The Chinese filmed entertainment market is worth $4,478 million and is expected to almost double by 2016 to $7,374 million(1). In 2011 the Chinese Government listed the creative sector as a pillar industry.

(1) PWC Global Entertainment and Media Outlook: 2012-16, 13th Edition, June 2012

Enquiries

Notes to editors

·; Pinewood Shepperton plc is Europe's largest provider of stage and studio space 

·; The 30,000 sq ft Richard Attenborough Stage was officially opened on 23 April 2012

·; Pinewood, Shepperton and Teddington Studios together accommodate 34 stages, five dedicated digital television studios and five digital presentation studios

·; Pinewood and Shepperton Studios are the first mixing theatres in the UK to be fitted with Dolby's revolutionary new audio technology, Dolby® Atmos™

·; Pinewood Studios is home to Europe's leading studio-based underwater filming stage, as well as one of the largest exterior water tanks in Europe

·; Pinewood Studios has Europe's largest green screen

·; Pinewood and Shepperton Studios have been home to over 1,500 films in more than 75 years

·; Pinewood, Shepperton and Teddington Studios have hosted over 600 TV shows

·; The Studios offer digital network speeds of 10 Gb/s

·; There are over 250 independent, media related companies based at Pinewood and Shepperton's Media Hub

·; The Pinewood Group's international network of Studios includes Toronto, Canada; Berlin, Germany; Iskandar, Malaysia; and the Dominican Republic.

·; The Group now offers financing to UK film and television production as part of its growing range of services.

Seven Stars

Seven Stars Media Limited is a leading China-based global entertainment company that focuses on creation, aggregation and distribution of premium content through its proprietary channels both in Asia and North America. Activities focus on a broad range of entertainment, including film and television production and co-production, mixed martial arts, theatrical and cable TV distribution, as well as large scale event and location based entertainment productions in mainland China and other parts of the world. In addition, Seven Stars Media also pursues entertainment related real estate ventures.

Forward looking statements

 This announcement includes forward looking statements that are based on current expectations and assumptions. They involve risks and uncertainties and may differ, possibly materially, from actual results, performance and achievement. Neither the Company, nor any of its directors, undertakes any obligation to update publicly or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

 For more information

 www.pinewoodgroup.com

Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website, nor any other website, is incorporated into, or forms part of this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.