22 December 2011

INTANDEM FILMS PLC

("Intandem" or the "Company")

Final Results

Intandem Films Plc, the London based international film group, is pleased to announce its Final Results for the year ended 30 June 2011.

Financial Highlights

·     Revenue for the period increased to £469,482 from £425,153 (2010)

·     Operating loss reduced to £436,939 from £642,047 (2010)

·     Loss before tax is £464,473 compared to a profit of £3,314,404 (2010) which included the one off sale of a film asset

·     Loss per share of 0.42p compared to a profit per share of 3.72p

Post Period Highlights

·     Robert Mitchell appointed to the Board as Non-Executive Director

·     Appointed as international sales company for $28m budget film 'The True Confessions of Charlotte Doyle'

·     Appointed international sales company for $20m budget thriller 'Lucidity'

·     Signed collaboration agreement with IFA Films to distribute its films throughout the world (excluding North America)

·     Raised £578,400 through a Placing of 9,640,000 new ordinary shares at 6p per share in July 2011

Commenting on the results, CEO of Intandem, Gary Smith said:

"The Board believes that despite the difficult global economic conditions, the film industry currently offers many opportunities for a company like Intandem to achieve significant growth. Intandem has a very clear strategy and a sustainable business model. We have worked, and will continue to work, diligently in increasing the quality and number of films we represent.

Intandem's objective is to be one of the World's leading independent film companies within the next five years which means generating significantly higher revenues and profits."

-END-

Intandem Films plc                                                                                   Tel: 020 7851 3800

Gary Smith, Chief Executive

Nominated Adviser

Northland Capital Partners Limited                                                   Tel: 020 7796 8800

Luke Cairns/Rod Venables

Broker

Rivington Street Corporate Finance                                                  Tel: 020 7562 3384

Dru Edmonstone/Jon Levinson                                                                               

Financial PR

Bishopsgate Communications                                                             Tel: 020 7562 3350

Deepali Schneider/Natalie Quinn

intandem@bishopsgatecommunications.com

Intandem Films plc

Chairman's Statement

This financial year has been positive for Intandem as we continue towards becoming a profitable company. We have built on our efforts last year and now have a slate of new film scripts to which Intandem has been appointed sales agent which consists of over 20 films with estimated total budgets in excess of $250million.

Results

During the year, two new films generated commission income and since the year end three additional films have commenced production and are now in post production which will earn commission income for the current financial year. As a result, turnover increased by 10% to £469,482 compared with £425,153 for the previous year. A number of our film projects were delayed for various reasons, however we expect to see revenues from these films from the current financial year.

The operating loss, which included a charge of £90,564 for share option accounting and a write down of £40,783 against film assets, was reduced from £642,047 to £436,939. Loss before tax was £464,473 against a profit of £3,314,404 in 2010. Last year's profit included a one-off benefit of £3,924,647 as a result of selling a film asset. The Board is conscious of the need to generate higher revenues to stem the operating losses and the directors are implementing a strategy that we believe will lead to sustained profitability.

Film Activity

During the period, Intandem was appointed as international sales company for nine new films. Two were completed during the year, 'The Veteran' and 'Screwed'.

In February 2011, Intandem was appointed as international sales company for 'K-11', a psychological  thriller set in the Los Angeles County's Men's Central Jail. The film is now in post production and is scheduled to premiere in February 2012 at the Berlin Film Festival.

Other films which started production  include 'Comes a Bright Day' which stars emerging talent Imogen Poots and Craig Roberts alongside industry veterans Timothy Spall and Kevin McKidd and 'Ecstasy', based on the novel of the same name by Irvine Welsh. In addition, the Company has helped to close the financing on the 3D thriller, 'Glimmer' which is expected to start production in the first quarter of 2012.

In May 2011, Intandem signed an agreement with Mary Alice Productions for the production and international sales of a slate of films in the $20 million-$40 million budget range. Intandem is currently working with Mary Alice to close the finance for the first two films under the arrangement, 'Section 8', a $25million comedy and 'Tupac', a $15m documentary film.

Post Period Film Activity

Since the year end, Intandem has been appointed as international sales company for Danny De Vito's $28m dollar budget action family film 'The True Confessions of Charlotte Doyle', for which it is working with the producers in sourcing finance, and $20m budget thriller 'Lucidity', which is being fully financed through the producers. These appointments are aligned with our strategy to represent larger budget films and we look to continue this in the next financial year.

In addition, the Company closed an agreement with California based IFA Films ("IFA") for IFA to supply Intandem with films for representation for sales outside North America. IFA will release the films in North America.

Current Strategy and Objectives

Intandem's objective is to be one of the World's leading independent film companies within the next five years which means generating significantly higher revenues and profits. We will do this by representing bigger films to generate more Executive Producer fees and commission income on international sales and by widening the scope of our business within the film industry.

The key to achieving our objective is to represent larger budget films which have worldwide appeal and to exploit the maximum distribution rights possible. The Board's target is to build its catalogue of new films at the rate of at least six films per annum with an average budget of £10million. This would result in thirty new films with budgets of £300million in the next five years.

The following action has been taken as part of our strategy of becoming a leading film company.

Increased presence in Los Angeles

Los Angeles is the centre of the film industry with all the top distributors, producers, financiers, agents and talent having representation in the city.  During 2011, I have personally spent much more time in Los Angeles to negotiate rights in larger budget films and as a result, in April, the Company took out a lease on a property in Santa Monica.

There is no doubt that there is demand from film distributors around the world for American, commercial feature films which can attract "star" talent and achieve a wide cinema release. These are the types of films we are aiming to supply to our international clients.

One of the reasons for the loss in the year to 30 June 2011 is that some of the films which we had expected to start production were delayed for various reasons. We are working hard with each of the film's producers to convert the film projects into completed films and we have a tremendous opportunity to create a valuable library of new and exciting film titles. Many of the films will have major film stars attached to them which will increase the chances of achieving a cinema release throughout the world, resulting in significantly higher revenues.

Greater control over the financing of films

Some of the delays in production during the year were as a result of challenges to film financing. During a period of tight controls over credit in world financial markets, it is not surprising that capital projects such as film production have suffered. Despite these setbacks, we believe that a balanced portfolio of quality, commercial film assets represents an attractive alternative investment opportunity for investors.

Intandem has a policy of not investing its own resources into film production. However, we are investigating the possibility of setting up a film fund which would be managed by Intandem. The Board has taken the first steps in preparing a funding document with the intention of raising funds to speed up the process of taking a film project from the script stage into production.

The objective is to increase our chances in achieving a minimum of at least £60million of new films each year.

New opportunities as a result of the digital revolution

The film industry is a major beneficiary of new technology and Intandem intends to take advantage of the opportunities available to it. The main changes affect how film assets can be distributed with a multitude of digital platforms opening up throughout the world. The platforms include cinema, television through video on demand, and all mobile technology.

As well as increasing the number of distribution outlets, the new technology greatly reduces the costs of distribution, especially with regards to video on demand.

In addition, the marketing of films can be much more effective on a worldwide basis thanks to the plethora of social networks which are opening. During the year, Intandem carried out detailed research into how to maximise the use of social networks in the marketing of its films.

Strengthened Board

As part of the Company's strategy to exploit the increased distribution opportunities open to it, the Board appointed Robert Mitchell as a non executive director in November 2011. Robert is one of the most experienced film distributors in the UK. He was formerly the Managing Director of Buena Vista UK, the distribution arm of Walt Disney Studios.

Robert has experience of releasing a wide range of films including 'Pirates of the Caribbean , 'Toy Story' and 'The Boy in the Striped Pyjamas'. He has been responsible for releasing eight out of the top forty two films ever released in the UK. Robert has a wide network of contacts throughout the film industry and we are delighted to have attracted him to the Board and are looking forward to him making a valuable contribution to the future growth of Intandem.

We will continue to look to strengthen our Board as we strive to achieve our objective of becoming one of the World's leading independent film companies.

Future Prospects

The Board believes that despite the difficult global economic conditions, the film industry currently offers many opportunities for a company like Intandem to achieve significant growth. Intandem has a very clear strategy and a sustainable business model. We have worked, and will continue to work, diligently in increasing the quality and number of films we represent. Our aim is to increase the conversion rate from script to production during 2012. This will initially increase the level of Executive Producer fees earned and will subsequently increase the value of sales commission generated as the films complete production.

We will continue to look for new sources of revenues which complement our existing business of Executive Production and International Film Sales and will grow the business in a controlled manner.

Finally, I would like to say a big thank you to the shareholders who supported a fundraising of £578,400 in July 2011, and to our employees who continue to work hard and conscientiously towards meeting our objectives at a very exciting time for Intandem.

You can follow the progress of Intandem on www.intandemfilms.com

Gary Smith

Chairman

22 December 2011

INTANDEM FILMS PLC

Consolidated and Company statement of financial position

as at 30 June 2011

The financial statements were approved by the Board and signed on its behalf on 22 December 2011.

Gary Smith                                                                            William Hurman

Chairman                                                                               Director

INTANDEM FILMS PLC

Consolidated income statement

for the year ended 30 June 2011

INTANDEM FILMS PLC

Consolidated and Company statement of changes in equity

for the year ended 30 June 2011

Upon review, the retained earnings and foreign exchange reserve which were amalgamated in the 2010 annual report, have been separated as per previous years to show the separate components of equity.

INTANDEM FILMS PLC

Consolidated and Company cash flow statement

for the year ended 30 June 2011

The 2009 cash flow statement has been restated and has been included as a comparative in the 2011 annual report.  Details of the restatement are explained in note 2, Accounting Policies - 'Restatement of 2009 cash flow statement' on pages 19 and 20 of the 2011 annual report. 

The 'Effects of exchange rate changes on cash balances' in the 2010 column previously stated a balance of £(205,940) in the 2010 annual report. This balance has been moved to Note 20 (Note to the cash flow statement - see page 36) in the 2011 annual report. 

The 2010 column has also been restated to show net proceeds of £500,000 for 'issue of new ordinary shares' (£950,000 in the 2010 annual report).  This is a result of the convertible loan notes of £450,000 being converted into ordinary shares during the year and has no effect on the closing cash position.

REPORT AND ACCOUNTS

The 2011 Annual Report will be posted to shareholders on 28 December 2011 and copies of the 2011 Annual Report will be available on the Company website.

NOTICE OF ANNUAL GENERAL MEETING

Notice will be given that  that the Annual General Meeting of Intandem Films Plc (the "Company") will be held at 114-116 Charing Cross Road, London, WC2H 0JR on 31 January 2012 at 12:00 noon.