Peter Hoffman, Chief Executive Officer of Seven Arts, stated: "We are pleased by the continuing growth in stockholder equity and reduction of loans outstanding as we recently announced. The operating loss for the quarter ended September 30, 2011 was expected and does not represent management expectations for the balance of the fiscal year. We anticipate substantial fee income and additional film revenue particularly in the second half of the fiscal year. The Company is making expected progress toward the goals set forth in our recent stockholder letter.
"In particular, we have made substantial progress in arranging the financing for our upcoming production of 'Neuromancer,' based on William Gibson's landmark novel, to be directed by Vincenzo Natali. We expect announcements soon of the attachment of major creative elements to this exciting production. We have entered into and expect shortly to close an acquisition of the music assets of David Michery, including the major recording artist DMX, to add to our acquisition of Big Jake Music, which we anticipate closing shortly. We expect major developments in our business in the balance of our fiscal year."