Seven Arts Entertainment Responds to Defamatory And Fraudulent Statements Regarding Activities at Cannes Film Festival

Seven Arts Entertainment Inc.

  ("Seven Arts" or the "Company") became aware that the public relations agency of an entity known to the Company only as "IFSG" has issued defamatory and fraudulent statements regarding the activities of the Company at the recent Cannes Film Festival.  IFSG is unknown to the Company, and the Company has not been able to locate any office or registered address.  IFSG may be an assignee of another entity that may have invested a limited amount of money in a motion picture project of Seven Arts Pictures plc ("PLC"), the Company's listing predecessor, which is in a creditor's liquidation proceeding in England.  The Company believes that any claims of that entity would be only as an investor in the project, and any claims would need to be presented in respect of PLC in the United Kingdom, including any claims with respect to affiliates of PLC. No actions have been filed against the Company or any of its affiliates by any party in connection with the above-referenced motion picture, and no claims have been threatened despite the defamatory and fraudulent statements made by IFSG.  In contradiction of