(EROS.L) Eros International PLC Buy/Sell

RNS Number : 1953A Eros International PLC 05 October 2009

Eros International plc (the "Company")

Trading Update

Potential Indian IPO of Eros International Media Limited ("Eros India")

Eros International plc (AIM: Eros), the leading integrated studio operating a global business of sourcing content mainly within the Indian filmed entertainment space across multiple languages and distributing the content worldwide across formats like cinemas, television, home entertainment and digital new media, is pleased to announce a trading update for the period ended 30 September 2009.

The Company has experienced a strong second quarter of the financial year and continues to trade in line with management's expectations. Since the resolution with the multiplexes as announced in June 2009, the Company began releases from July 2009 onwards and has already had two major successes, namely Kambakkth Ishq and Love Aaj Kal as previously reported, and several regional films including Me Shivaji Raje Bhosale Boltoy, Tera Mera Ki Rishta and Kandasamy. TV and digital revenues continued to be strong. Cash generation during the period was in line with expectations taking into account the theatrical release schedule and net debt at 30 September 2009 was at a similar level to 31 March 2009. Given the strong release schedule and anticipated cash generation in the second half, net debt is expected to show a material reduction by the financial year-end.

As part of its overall strategy to strengthen its balance sheet in anticipation of future corporate activity, the Company has firmed up its plans to list Eros International Media Limited, its wholly-owned subsidiary company in India, on the Bombay Stock Exchange (BSE). It has appointed Enam, Kotak and RBS (Royal Bank of Scotland) to act on the Indian IPO and it is expected that the transaction will conclude within the current financial year ended March 2010. It is expected that the intended IPO and the recent appointment of Mr A.P. Parigi as Group CEO for the Indian operations will drive the group's growth and consolidation within India. Mr Naresh Chandra will be appointed as the Non-Executive Chairman of the Indian Board. It is currently intended that any new funds raised by Eros India in the Indian IPO will not result in a dilution of the Company's ownership in excess of 25%.

5 October 2009

Enquiries:

Eros International plc 020 8963 8400

Kishore Lulla / Jyoti Deshpande / Andrew Heffernan

Evolution Securities Limited 020 7071 4300

Jeremy Ellis / Chris Clarke

This information is provided by RNS The company news service from the London Stock Exchange

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