Seven Arts Entertainment Announces Sale of Unregistered 250,000 Shares of Its Common Stock to Fletcher Asset Management

Seven Arts Entertainment Inc. (NASDAQ:

) announced today that on October 5, 2011, BRG Investments, LLC acquired 250,000 newly issued shares of Seven Arts common stock at a price of $1.00 per share. During the next six months, BRG may purchase an additional 250,000 shares of Seven Arts common stock at the volume weighted average price, but no less than $1.00 or more than $1.50. BRG received a warrant to purchase 100,000 shares of Seven Arts common stock and will receive an additional warrant with the same terms if it purchases the additional 250,000 shares. Seven Arts intends to use the proceeds of this transaction to partially fund its next motion picture production in Louisiana entitled Schism, written and to be directed by Adam Gierasch, the director of Autopsy and Night of the Demons, two recent releases by Seven Arts. Seven Arts and BRG also entered into a mutually acceptable settlement of their dispute relating to their previous investment agreement.