R4E.L Regulatory News (R4E)

05.10.11

PIVOT ENTERTAINMENT GROUP PLC

("Pivot Entertainment" or "the Group")

New Division - Pivotal Interactive

Pivot Entertainment Group plc (AIM: PVT), the transatlantic media and entertainment company, is pleased to announce the establishment of a new division; Pivotal Interactive. This division will expand and leverage the existing digital and social media capabilities of the Group within a dedicated Company. Pivotal Interactive is a wholly owned subsidiary of Pivot Entertainment which has a strategy of seeking to acquire complementary assets and capabilities with the objective of becoming a multi platform provider of digitally delivered services, products and content.

In order to further develop this new initiative, Pivot is pursuing its acquisition strategy and currently is in discussions with a number of target companies

Commenting on the new division, CEO of Pivot Entertainment, Jeremy Barbera says:

"The growth of digital and social media in recent years has been exponential. We believe the launch of Pivotal Interactive provides the Group with a platform to develop and grow the business in this area.

This initiative will allow Pivot to establish a broad consumer platform that will offer various products and services, such as tickets, promotions, merchandise and programming. It will provide the Group with the tools and new market channels that they can deploy for their clients' benefit and advantage, thereby enhancing their competitive position. This is expected to generate advertising revenue as the number of audience grows, as well as creating substantial intrinsic value in the medium itself."

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Enquiries:

Jeremy Barbera/David Stoller/ Shirley Stapleton Tel: +44 20 79930000

Seymour Pierce Limited

Stewart Dickson/Tom Sheldon (Corporate Finance) Tel: +44 20 71078000

Katie Ratner (Corporate Broking)

XCAP Securities plc

Adrian Kirk / David Lawman (Joint Broker) Tel: +44 207 101 7070

Bishopsgate Communications Limited

Deepali Schneider/Natalie Quinn Tel: +44 20 75623350

pivotentertainment@bishopsgatecommunications.com