Business Services Industry

Genius Products - Expands Credit Facility to up to $100 Million Led by Societe Generale

Business Wire, Nov 5, 2007

Credit Line, in Addition to Improving Cash Flow Expected to Support Phased Expansion Strategy of Co-Productions, Distribution, Marketing, and Content Acquisitions

Banking Consortium Includes Societe Generale and Alliance & Leicester Commercial Bank

SANTA MONICA, Calif. -- Genius Products, LLC, a leading independent home entertainment distribution and content company, today announced that it has closed a $50 million amended and restated credit facility provided by Societe Generale Corporate & Investment Banking and Alliance & Leicester Commercial Bank.

The credit facility establishes a three-year, senior secured revolving credit facility providing for an initial commitment of $50 million and up to a total of $100 million based upon expected incremental commitments. The facility is being used to provide working capital and to finance content acquisition, production and co-productions, distribution, and marketing. The amount available under the revolving credit facility is based on accounts receivable, excluding those associated with product from The Weinstein Company (TWC).

"We believe this increase is a strong endorsement of Genius' solid strategic platform and our expanding relationships with content partners. Societe Generale's corporate and investment banking division is known for its capabilities in the media sector.

Together with Alliance & Leicester Commercial Bank, they create a leading financial media team that Genius is privileged to partner with," stated Stephen K. Bannon, Chairman. "The facility will provide the financial capacity for us to fully execute the second phase of our business expansion, including co-productions with our branded partners in our four verticals of Sports, Family/Faith, Lifestyle and Independent Film. Co-productions will augment our distribution expertise, and our anticipated ownership of the copyright and distribution rights will greatly enhance the value of our library."

Trevor Drinkwater, president and CEO of Genius Products stated, "Our new co-productions, in addition to expanding relationships with our existing content partners through traditional and non-traditional distribution and marketing, is expected to contribute to our improving earnings power."

"We continue to carefully manage our growth and build upon our superior marketing and distribution platform. We are excited to be working with some of the strongest lending institutions in the entertainment industry. Our improving cash flow in conjunction with this increased financing facility will allow us to maximize the potential of the operating leverage inherent in our business model," stated John Mueller, Chief Financial Officer.

About Genius Products

Genius Products, Inc. (OTCBB:GNPI), along with The Weinstein Company Holdings LLC, together owns Genius Products, LLC, a leading independent home-entertainment distribution company that produces, licenses and distributes a valuable library of motion pictures, television programming, family, lifestyle and trend entertainment on DVD and other emerging platforms through its expansive network of retailers throughout the U.S. Genius handles the distribution, marketing and sales for such brands as Asia Extreme(TM), Discovery Kids(TM), Dragon Dynasty(TM), Dimension Films(TM), ESPN[R], IFC[R], RHI Entertainment(TM), Sesame Workshop[R], The Weinstein Company[R] and WWE[R]. Genius Products, Inc. is the managing member of Genius Products, LLC, in which it holds a 30% equity interest.

About Societe Generale Corporate & Investment Banking

Societe Generale Corporate & Investment Banking is present in over 45 countries across Europe, the Americas and Asia-Pacific, and is the bank of reference for Euro capital markets, derivatives and structured finance. The bank is a worldwide leader in export, project and structured commodity finance with global expertise in energy, infrastructure, real estate and media & telecom finance. Tailoring solutions in terms of capital raising, financing, risk management and investment, the bank combines expertise, innovation and advisory skills coupled with quality of execution for issuer and investor clients.

www.sgcib.com

About Alliance & Leicester Commercial Bank

Alliance & Leicester Commercial Bank (ALCB) is part of Alliance & Leicester plc - the UK's 7th largest bank and a FTSE100 company. ALCB arranges and participates in facilities across a wide spectrum of global assets including aviation, shipping, infrastructure, project and intermodal finance. The bank's commercial lending book totals over PS7bn. The specialist media team is involved in providing facilities to borrowers based in Los Angeles, New York and London. It is involved in financing libraries, producer and studio led slate transactions, single picture financings and Tax Credits for film, TV and music publishing companies.

www.alliance-leicestercommercialbank.co.uk

Safe Harbor Statement

Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements. The forward-looking statements reflect assumptions and involve risks and uncertainties that may affect Genius Products' business, forecasts, projections and prospects, and cause actual results to differ materially from those in these forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our revenue, earnings, cash flow and profitability in 2007 and beyond, the anticipated growth of our business and content library, our anticipated co-productions with our co-producing partners, our ability to successfully position ourselves as a leading home entertainment distributor, and the effect of our agreement with Societe Generale and Alliance & Leicester in achieving these goals. Actual results could vary for many reasons, including but not limited to, our ability to comply with the terms of our amended and restated credit agreement, our ability to acquire and keep valuable content and expand our distribution and co-production partnerships, the unpredictability of audience demand, the popularity of our titles on DVD, our ability to perform under the terms of our agreement with our content providers, our ability to continue to manage our significant growth, the availability of alternative forms of entertainment and our ability to maximize our operating leverage. Other such risks and uncertainties include the matters described in Genius Products' filings with the Securities and Exchange Commission. Genius Products assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

COPYRIGHT 2007 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning

 

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