R4E.L Regulatory News (R4E)

28 January 2013

reach4entertainment enterprises plc

("r4e" or "the Company" or "the Group")

r4e Trading Update

Demonstrable progress; positioned for further growth in 2013

r4e, the transatlantic media and entertainment company, today provides the following trading update in respect of the year ended 31 December 2012. Preliminary results for the financial year are expected to be released no later than April 2013.

Strong second half performance returns Company to profit

2012 has proved to be a highly productive year for the Company with substantial trading and corporate development progress achieved. The Company has also benefitted financially from the impact of its restructuring activities previously carried out.

As indicated at the time of the Company's interim results announced in September 2012, a strong financial performance in the second half of the year has ensured that r4e will report a profit for the year ended 31 December 2012.

Dewynters, the Company's London based theatre marketing business, produced a healthy performance in 2012, driven by a combination of continued collaborative success with long-term clients and new projects, augmented by a strong performance from Newman Displays, r4e's London based signage and fascia business.

SpotCo, r4e's New York based theatre marketing business, was impacted by a weaker than expected slate of new show openings, resulting in reduced revenue on a year-on-year basis. However, as a result of increased operational efficiencies and tightened cost control it made a positive contribution to the Group result.

Benefits of earlier restructuring beginning to make an impact

The Company is now beginning to show the impact of the extensive restructuring programme undertaken in prior periods, including the reduction of Head Office overheads by approximately £2 million, with further improvements expected in 2013.

The Company today announces that it has concluded the reorganisation of its loss making New York based merchandising business, Dewynters Advertising Inc ("DAI"), involving outsourcing the operational fulfillment and logistics activities. This action will insulate DAI from future losses associated with its traditional merchandising activity which should now produce a modest contribution to Group profits.

Focused on delivering further progress throughout 2013

The Directors of the Company are confident that r4e will continue to make progress throughout the course of the current financial year. SpotCo has secured a strong slate of new shows for 2013, including Amazing Grace, Big Fish, Breakfast at Tiffany's, Cat on a Hot Tin Roof, Cinderella, Kinky Boots, Motown andThe Bodyguard, which should ensure improved performance from the division in 2013. Similarly, Dewynters has a solid slate of new shows, such as The Book of Mormon, Charlie and the Chocolate Factory, From Here to Eternity, The Audience and The Quartermaine's Terms, and is well placed to demonstrate progress throughout the year.

Additionally, the Company's recently launched New York based Events division, Reach4Events, is enjoying a good start, producing and designing the opening night celebrations for Cat on a Hot Tin Roof and Cinderella, with a number of other high profile productions in the pipeline. The Company is also advancing other new initiatives in associated markets and will provide updates on progress when appropriate.

Commenting, David Stoller, Executive Chairman, said:

"After a number of challenging years, I am pleased to say it's been a year of genuine progress and success. We now have a stable and focused business, operating in an increasingly collaborative manner, delivering exceptional work for clients on both sides of the Atlantic."

Ends

Enquiries:

reach4entertainment +44 (0) 20 7993 0000

David Stoller, Executive Chairman

Shirley Stapleton, Finance Director

Blythe Weigh Communications +44 (0) 20 7138 3204

Paul Weigh +44 (0) 7989 129658

Kawthar Badda +44 (0) 7534 508647

Seymour Pierce Limited +44 (0) 20 7107 8000

Stewart Dickson/Tom Sheldon/Julian Erleigh (Corporate Finance)

Katie Ratner/Jacqui Briscoe (Corporate Broking)