Filmnight Backed by NewSmith Capital

Filmnight Backed by NewSmith Capital

LONDON, July 15/PRNewswire/ -- Filmnight, the "bricks & clicks" online and store-based film retailer, has secured a new round of institutional investment from NewSmith Asset Management LLP, the fund management arm of NewSmith Capital Partners.

The private equity investment provides Filmnight with up to GBP4m to further expand its wireless and digital content services in the UK and other international markets.

Filmnight also confirmed that it was seeking to expand its recently acquired store network, Apollo, through further acquisitions in the sector. The company is already one of the UK's fastest growing retailers of DVDs via its web site, www.filmnight.com.

Filmnight Executive Chairman Andrew Bentley said,

"We are delighted to have NewSmith on board. The firm has amazing pedigree and a wealth of experience. I anticipate that it will make a major contribution in taking our business to the next level."

Gordon Dunn, Partner, NewSmith Capital Partners LLP said,

"Filmnight is positioned to consolidate its leading role within the rapidly expanding digital and wireless film content market. We are highly impressed by the quality of management. Filmnight's digital distribution complements its strong retail presence and creates exciting cross-selling opportunities."

Financing was arranged by the DUET Group, a seed investor and shareholder in The Filmnight Group.

Note to Editors

Filmnight was established in 2003 and works across three distinct business areas, focusing its commercial interests on filmed entertainment products: these are 1) high street DVD rental and sell through by running one of the UK's largest high street rental operations 2) online retail from the Channel Islands with a selection of over 20,000 DVDs available online and 3) a combination of content provision and DVD retail across several mobile networks in the UK and internationally.

1) In January 2005 Filmnight joined forces with Apollo, the UK's third largest High Street film rental operator. The Apollo stores are set to become Filmnight's High Street operation. Apollo owns and operates 60 stores across the UK and has franchise operations in over 200 other stores. The owned stores have approximately 750,000 members.

2) Filmnight.com is the company's online retail website and provides over 20,000 Region 2 DVDs for sale from its warehouse based in the Channel Islands. Filmnight.com's prices are highly competitive in the online consumer space, competing against major players such as play.com and amazon.com. Filmnight.com is planning on introducing film downloading from its website in late 2005.

3) Filmnight has been selected to provide exclusive film and film related content for Vodafone UK's newly launched Vodafone live! with 3G services. The Filmnight services, which are also available to Vodafone's existing 2.5 million Vodafone live! customers, include: film related news and gossip; superior quality film trailer downloads; latest cinema news and related downloads (including wallpapers and ringtones); new DVD releases, reviews; and the ability to buy films over the Vodafone Live! browser.

Key Staff:

Key Staff for Filmnight Group Limited (holding company), company based in Guernsey:

Andrew Bentley, Executive Chairman

Charles Butter, Deputy Chairman

Neil Whitfield, Managing Director Stores

Shashi Fernando, Managing Director Digital

Andrew Bentley was previously President of Electrolux Home Products International, a multi-billion dollar division of Electrolux, the world's largest appliance company, having earlier held senior executive positions with EMI Music and Safeway.

For further information on Filmnight's current business activities, visit www.filmnight.com

NewSmith Capital Partners LLP is an independent investment management and corporate advisory partnership. Wholly owned and financed by its equity partners, the partnership provides asset management services via NewSmith Asset Management LLP, and corporate finance advice through NewSmith Financial Solutions Limited. Both NewSmith Asset Management and NewSmith Financial Solutions are authorised and regulated by the Financial Services Authority.

For further information on NewSmith Capital Partners, visit www.newsmithcapital.com

Source: Film Night (Guernsey) Ltd

For further information please call: Andrew Bentley - Filmnight +44(0)208-397-3333 or Alex Shaida, PR on +44(0)77956-13733, Gordon Dunn - NewSmith Asset Management +44(0)207-518-3807. Key Staff for Filmnight Group Limited (holding company), company based in Guernsey: Andrew Bentley, Executive Chairman tel: +44(0)20-8397-3333, Charles Butter, Deputy Chairman tel: +44(0)20-8397-3333, Neil Whitfield, Managing Director Stores tel: +44(0)20-8397-3333, Shashi Fernando, Managing Director Digital tel: +44(0)20-7549-2820.

------- Profile: Ent