R4E.L Regulatory News (R4E)

First Artist Corporation plc

("First Artist" or the "Company" or the "Group")

Disposal of Optimal Wealth Management Limited

First Artist Corporation plc (AIM:FAN) is pleased to announce that it has completed the sale of its independent financial advisory firm, Optimal Wealth Management Limited ("Optimal"), to Conforto Financial Management Limited ("Conforto") for a total consideration of £1.5 million, to be satisfied wholly in cash. £1.3 million of the consideration was paid upon completion, with two further payments of £100,000 to be made in April and July 2010.

The net proceeds of sale will be used for the reduction of debt.

Optimal, formerly known as ABG Financial Management Limited, was acquired by First Artist in August 2005. Its joint Managing Directors, Sean Scahill and Peter Kelsey, have continued to lead the business and each of them are due from First Artist a sum of around £100,000, to be satisfied in cash or shares, or a combination of the two, following the successful conclusion of its sale. In September 2007 the Group announced that Optimal had achieved its maximum earn out payments, following which the total consideration paid was £3 million. In the financial year ended 31 August 2009 the business produced an operating profit of £285,300 on a turnover of £1.836 million. Its net assets at that date were £145,012.

The sale follows the Company's announcement in June 2009 that it was exploring its strategic options with regard to its non-core businesses.

Conforto is an innovative, fee based independent wealth management firm best known for its expertise in advising professional sportspeople, entrepreneurs and business owners, and as such represents an ideal fit for Optimal.

Commenting on the disposal, Jon Smith, Chief Executive of First Artist, said:

"The sale of Optimal is a significant step towards our stated goals of reshaping the Group as a highly focused media business, and reducing debt. We also believe that its acquisition by Conforto will provide real opportunities and benefits for Optimal's clients and employees. We extend our thanks to Sean Scahill, Peter Kelsey and their team for their contribution over the last four and a half years, and we wish them and Conforto all the very best for the future".

Peter Klauber, Chairman of Conforto, said:

"We are delighted to have secured Optimal, a business which shares our vision for the future of the financial services market in the UK. We are excited to be working with their excellent team and look forward to the next stage of the strategic growth plan".

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Notes to Editors:

First Artist Corporation plc was admitted to AIM in 2002.

First Artist's group companies are among the leading brands in their fields under the following categories: 

Media - entertainment advertising, marketing, design, promotions, digital media, merchandising, signage and front of house displays for the West End, Broadway and Las Vegas via the Dewynters, SpotCo and Newman Displays brands. Sponsorship rights marketing through First Rights Limited.

Events - offers a broad range of events such as conferences, company activity days, parties, venue finding, delegate management and client events for private and public sector clients through The Finishing Touch.

Entertainment/Sport - representation of media personalities and football players/clubs across the UK, Europe and the US by First Artist Management and the Sport division.