Trading Update

2 July 2012

Prime Focus London PLC

(the "Company")

Trading Update

The Board of Prime Focus London PLC today issues the following statement:

Following a review of the results for the year ended 31th March 2012, as part of the preliminary audit process, the Board has concluded that whilst revenue is expected to be marginally below the previous year and whilst the Company remains profitable, these profits are likely to be below expectations and materially below last year's performance.

Trading over the first quarter of the current financial year in each of the Company's two key divisions of Commercials and Broadcast is below management expectations and below the corresponding period last year.

The summer is generally a quiet trading period for the Company, but the continuing effect of recession coupled with a downturn in TV advertising linked to the forthcoming Olympics has triggered a marked downturn in expected activity levels across the post production industry. Additionally, the effects of on-going downward pressure on production company budgets are having a material impact on activity levels and margins.

Under these circumstances, the Company is planning an extensive operational restructuring. The aim being to reduce running costs, minimise cash burn and to insulate against rapidly emerging negative industry trends which are forcing declines in activity levels across the market.

The Company continues to be dependent upon Prime Focus Limited, its Indian majority shareholder, for the funding of its working capital requirements.

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