Ingenious Media Active Capital Limited : [IMAC - Whizz Kid Productions financing]

28 March 2013

The Board of IMAC is pleased to announce that Ingenious Ventures, a trading division of Ingenious Capital Management Limited, has agreed to make an investment of £951,600 from the Media Opportunities Fund into Whizz Kid Productions Limited ("Whizz Kid Productions"). Whizz Kid Productions is a newly formed 100% owned subsidiary of Whizz Kid Entertainment Limited ("Whizz Kid Entertainment"), an investee company of IMAC.

The investment will be used by Whizz Kid Productions to undertake the production and development of various TV programmes and formats. Whizz Kid Entertainment, in which IMAC owns 47.25% of the equity (along with £2.75m of loan notes) will charge fees to Whizz Kid Productions in return for providing administrative and executive producer services and Whizz Kid Productions intends to undertake development work on a wide slate of production opportunities, some of which have already been part-developed by Whizz Kid Entertainment, to advance these propositions with a view to getting these projects commissioned (or sold in the case of formats).

Ingenious Ventures will invest £951,600 from the Media Opportunities Fund in return for new ordinary shares representing 97.5% of the enlarged ordinary share capital of Whizz Kid Productions. Ingenious Ventures will charge Whizz Kid Productions an upfront arrangement fee of £31,499 and an annual monitoring fee of £8,591. Whizz Kid Productions has not traded to date.

The proposed investment by Ingenious Ventures is a Related Party Transaction under the AIM Rules as Ingenious Capital Management Limited is ultimately controlled by Patrick McKenna, a director of IMAC. For the purposes of the AIM Rules, the independent IMAC directors ("Independent Directors") comprise the Board of IMAC other than Patrick McKenna, Neil Blackley (who is a an employee of the Ingenious Group) and William Simpson (who is a director of Ingenious Asset Management International Limited and FP Holdings Ltd, both 75% owned by the Ingenious Group). The "Ingenious Group" is defined as Ingenious Media Holdings Plc and each of its subsidiaries.

The Independent Directors believe, having consulted with the Company's Nominated Adviser, that the terms of the investment are fair and reasonable insofar as all shareholders are concerned.

Enquiries:

IMAC
Patrick McKenna/ Patrick Bradley 020 7319 4000

Beaumont Cornish Limited (Nominated Adviser and Broker)
Michael Cornish 020 7628 3396