(IFC.L) Indian Film Company (The) Ltd Buy/Sell

Each year, as part of the annual slate of releases, the Company invests in a few cornerstone projects. However, the Directors believe that the terms quoted for the projects evaluated by the Company this year have not been commercially viable and as a result, to date, IFC has not acquired any corner stone projects for its film portfolio, which has also impacted the number of films the Company expects to release during the current financial year.

The Company regularly monitors the film release schedule to ensure releases are timed to have the best possible chance of maximising returns. IFC decided to postpone the release of its film 'Fruit 'n' Nut', which was originally set for release in September 2009, as a number of films were being released by other producers during that month. 'Fruit 'n' Nut' is now expected to be released on 23 October 2009.

Trading environment and impact on profits

The disagreement on the revenue sharing model between the United Producers and Distributors Forum ("UPDF") and the key national multiplex cinema chains in India ("Multiplex") had an adverse impact on the Company's trading activities. As announced on 9 June 2009, the two month long negotiations with the Multiplex owners resulted in improved revenue sharing terms for the producers and distributors. However, the prolonged negotiations in reaching an agreement on the revenue sharing terms resulted in a two month delay in the planned film release schedule resulting in a loss of theatrical revenues for that period.

Additionally, the challenging economic environment has continued to put pressure on the advertising spend of broadcasters globally, which has also impacted the revenues from the sale of satellite rights.

As a result of the impact of the global economic downturn, delayed film releases due to the dispute between the UPDF and Multiplex owners, coupled with weak performances of the films released to date, the Company is not expected to report a profit for the six months ended 30 September 2009.

Outlook

The Directors believe that the recent signs of an upturn in the economy will have a positive impact on the financial performance of the Company.

IFC is committed to creating, acquiring and distributing quality content and the Directors firmly believe that by increasing the Company's focus on the multiple revenue streams approach, better shareholder returns can be expected to be delivered.

The Company expects to release five films in the second half of the current financial year:

Fruit 'n' Nut - October 2009

Banda Yeh Bindaas Hai - December 2009

Kaun Bola - January 2010

Striker - February 2010

Ishq Unplugged - February/March 2010

The Company will keep the market updated for any further developments.

For further information, please contact:

The Indian Film Company Limited www.theindianfilmcompany.com
Sandeep Bhargava Tel: +91 22 6629 1723

Grant Thornton Corporate Finance (Nominated Adviser)
Fiona Owen Tel: +44 20 7383 5100

Elara Capital plc (Broker)
Raj Bhatt/Mary Phelan Tel: +44 20 7486 9733

Oriel Securities Limited (Broker)
Natalie Fortescue/Daniel Conti Tel: +44 20 7710 7600

Pelham Public Relations
Alex Walters/Francesca Tuckett Tel: +44 20 7337 1500

Notes to Editors

The Indian Film Company (the 'Company') is a specialist film investment company which was admitted to trading on the AIM market in June 2007 and raised GBP 55 million in order to invest in a diverse portfolio of Indian films targeted at the Indian audiences across varying genre, language and budgets. The Company is managed by Film Investment Managers (Mauritius) Ltd., which is jointly and equally owned by Viacom Inc. and BK Media Mauritius PVT. BK Media Mauritius PVT is owned by Raghav Bahl, the founder and controlling shareholder of Network 18.

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

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