Point.360 to Acquire the Assets of CenterStaging Musical Productions, Inc.

Point.360 to Acquire the Assets of CenterStaging Musical Productions, Inc.

BURBANK, Calif., Sept. 30 /PRNewswire-FirstCall/ -- Point.360 (NASDAQ:PTSX) , a leading provider of integrated media management services, today announced that it has entered an agreement to acquire the assets of CenterStaging Musical Productions, Inc., which agreement is subject to approval in CenterStaging's pending Chapter 11 bankruptcy case. CenterStaging is one of the largest independent providers of production rehearsal and support services for live musical performances and television events.

Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive Officer said: "CenterStaging's customers include recording artists, television networks, production companies and studios that use the space and expertise of CenterStaging in the same manner as owners of content use the talent and facilities of Point.360 to service their masters. The potential acquisition will bring us approximately $7 million of new revenue opportunities, new customers in a new segment of the entertainment industry and the opportunity to cross-sell the services of Point.360 and CenterStaging."

The Company stated that CenterStaging is primarily engaged in (i) providing production and support services for live musical performances and major televised award shows such as the Academy Awards and the GRAMMY Awards and other televised shows and events, such as the Super Bowl halftime show and presidential inaugurations; (ii) renting its studio facilities to musicians for rehearsal, production and recording; and (iii) renting musical instruments and related equipment for use at its studios and other venues.

The purchase of assets is expected to be completed in the quarter ended December 31, 2008 and is subject to the United States Bankruptcy Court approval and an opportunity for other parties to overbid for CenterStaging's assets. Point.360's obligations under the agreement are conditioned upon the negotiation of real and personal property leases, the settlement of certain tax obligations, approval of the bankruptcy court and other matters. There can be no assurance that the transaction contemplated by the purchase agreement will be approved by the bankruptcy court or that the conditions to closing will be met.

About Point.360

Point.360 (PTSX) is a value add service organization specializing in content creation, manipulation and distribution processes integrating complex technologies to solve problems in the life cycle of Rich Media. With six locations in greater Los Angeles, Point.360 performs high and standard definition audio and video post production, creates virtual effects and archives and distributes physical and electronic Rich Media content worldwide, serving studios, independent producers, advertising agencies, corporations, non-profit organizations and governmental agencies. Point.360 provides the services necessary to edit, master, reformat and archive clients' audio and video content, including television programming, feature films and movie trailers.

Point.360's interconnected facilities provide service coverage to all major U.S. media centers. Clients include major motion pictures studios, advertising agencies and corporations.

Forward-looking Statements

Certain statements in Point.360 press releases may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation (i) statements concerning the Company's projected revenues, earnings, cash flow and EBITDA; (ii) statements of the Company's management relating to the planned focus on internal growth and acquisitions; (iii) statements concerning reduction of facilities and actions to streamline operations; (iv) statements on actions being taken to reduce costs and improve customer service and (v) statements regarding new business and new acquisitions. Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievement of Point.360 to be materially different from those expected or anticipated in the forward-looking statements. Please also refer to the risk factors described in the Company's SEC filings, including its annual reports on Form 10-K. Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from those expected or anticipated in the forward- looking statements. In addition to the factors described in the Company's SEC filings, including its quarterly reports on Form 10-Q, its registration statement on Form S-1 and Form 10-K, the following factors, among others, could cause actual results to differ materially from those expressed herein; (a) lower than expected net sales, operating income and earnings; (b) less than expected growth; (c) actions of competitors including business combinations, technological breakthroughs, new product offerings and marketing promotional successes; (d) the risk that anticipated new business may not occur or be delayed; (e) the risk of inefficiencies that could arise due to top level management changes and (f) general economic and political conditions that adversely impact the Company's customers' willingness or ability to purchase or pay for services from the Company. The Company has no responsibility to update forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.

First Call Analyst:
FCMN Contact: asteel@point360.com

Source: Point.360

CONTACT: Alan Steel, Executive Vice President of Point.360,
+1-818-565-1444

Web site: http://www.point360.com/

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Profile: International Entertainment