EuropaCorp

Earnings Release • May 26, 2011

Annual revenue 2010/11: €178.7m (-1.4%)

• Q4 revenue is €67.2m (-23% compared to the corresponding quarter in 2009/10) due to the lower performance of the International Sales segment.
• Q4 figures relied on satisfactory revenue from the feature film rights managed by the "Television, France" and "Video, France" segments.
• The "TV Series" television production segment shows the start of promising growth.
• A rich, balanced line-up targeted at an international audience should make a significant contribution to FY 2011/12 performance.

Paris, 26 May 2011 – EUROPACORP, producer and distributor of feature films and one of Europe's leading independent film studios, today announces its unaudited consolidated annual revenue for the 2010/11 financial year, which ended on 31 March 2011.

Revenue	Q4	Q4	12 months	12 months	Δ 12 months
(€ million)	2010/11	2009/10	2010/11	2009/10	(%)
International Sales	6.6	57.0	34.9	80.0	-56.4%
% of Revenue	9.8%	65.4%	19.5%	44.1%
Cinemas, France	6.1	6.4	36.7	22.7	61.6%
% of Revenue	9.0%	7.3%	20.5%	12.5%
Video, France	13.3	8.7	24.7	26.2	-5.9%
% of Revenue	19.7%	10.0%	13.8%	14.5%
Television, France	26.5	8.4	43.1	27.6	56.3%
% of Revenue	39.5%	9.6%	24.1%	15.2%
Subsidies	2.9	2.1	11.7	7.5	55.7%
% of Revenue	4.4%	2.4%	6.5%	4.1%
TV Series*	6.9		15.7		-
% of Revenue	10.3%	-	8.8%	-
Other Activities	4.9	4.5	11.9	17.3	-31.1%
% of Revenue	7.2%	5.2%	6.7%	9.5%
EuropaCorp Group	67.2	87.2	178.7	181.3	-1.5%

Q4 and annual consolidated revenue (unaudited)

Q4 revenue of FY 2010/11 was impacted by the low level of international sales and primarily relied on the highly sustained performance of the Television, France operations and the significant growth in Video sales.

The healthy sales posted by the Television, France segment (€26.5m for the quarter) are linked to the numerous openings of broadcast windows for new releases (in particular Arthur 2, 22 Bullets, From Paris With Love and Paris Express) and the sale of catalogue films (such as Arthur, Taxi 2, Taxi 3 et Taxi 4, Transporter).

For its part, the Video, France segment benefited from three major releases during the last quarter of the financial year (Little White Lies, Arthur 3 and The Big Picture) and thus posted record revenue of €13.3m on the same period.

During the quarter, the TV Series segment generated revenue of around €7m, primarily from the delivery of the XIII series to Canal Plus.

International Sales only reached €6.6m for the quarter and mainly correspond to the releases of Little White Lies, Arthur 3 and The Big Picture.

After a very strong third quarter, revenue for the Cinemas, France segment reached €6.1m for the fourth quarter of FY 2010/11, with, in particular, the release of Halal Five-O and continuing admissions related to A View of Love and Little White Lies, among others.

During the quarter, Other Activities revenue (€4.9m) primarily corresponds to income from coproduction.

	2010/11				2009/10
Revenue (€ million)	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
International Sales	4.8	14.5	9.0	6.6	3.1	13.2	6.7	57.0
Cinemas, France	5.6	0.6	24.5	6.1	1.5	1.0	13.8	6.4
Video, France	2.8	4.4	4.1	13.3	6.2	5.1	6.1	8.7
Television, France	3.8	4.5	8.4	26.5	6.0	3.3	10.0	8.4
TV Series*	3.6	3.2	2.0	6.9	-	-	-	-
Subsidies	1.3	2.8	4.7	2.9	1.1	1.2	3.1	2.1
Other Activities	1.2	4.3	1.6	4.9	2.4	3.0	7.4	4.5
EuropaCorp Group	23.0	34.1	54.3	67.2	20.4	26.7	47.0	87.2

Evolution in revenue by quarter

Annual revenue for the 2010/11 financial year is €178.7m and is characterised by the strong growth of Television, France sales (+56.3%) and of the Cinemas, France segment (+61.6%). As expected, this annual revenue is however slightly down compared to FY 2009/10 (€181.3m) given the lower performance of the International Sales segment. This segment suffered mainly from the poor performance of Arthur 2 and Arthur 3.

• The International Sales segment, which has dipped compared to the healthy performance of FY 2009/10 that was boosted by the success of English-language films (Taken, From Paris With Love and I Love you Phillip Morris), posted revenue of €34.9m for FY 2010/11 as a result of admissions to Adèle Blanc-Sec, Arthur 3, 22 Bullets and Little White Lies;
• The revenue from the Cinemas, France segment (€36.7m) shows that it was an exceptional year for the Group; 5 EuropaCorp films had recorded more than one million admissions each (Adèle Blanc-Sec, Arthur 3, Little White Lies, The Big Picture and A View of Love);
• It was a satisfactory year for the Video segment (€24.7m);
• The significant growth in the revenue from the Television segment (€43.1m) reflects the fact that the Group was able to secure numerous broadcasting windows, both for recent releases and catalogue films, notably during the last quarter;
• The new television series production segment (EuropaCorp Television) showed signs it was beginning to gather momentum by the end of the financial year.

• Outlook

The Group emphasises that the underperformance of the International Sales segment, in particular, will heavily penalise the results for FY 2010/11. These losses are also a result of the application of a stricter prudential policy in terms of amortization and depreciation of intangible assets, as well as of the nonrecurring costs linked to the implementation of the new organisation.

Business performance for FY 2011/2012 should benefit from a rich, balanced line-up.

As part of the Group's plan of strategic actions announced on 4 May, EuropaCorp is continuing its policy of securing the distribution of its films. In particular, on 16 May 2011, EuropaCorp signed an exclusive output deal with Scanbox Entertainment AS for the distribution of most of its films in the next three years on the Scandinavian market.

Moreover, the Group confirms that the following films are in production: Taken 2 directed by Olivier Megaton, with Liam Neeson, Blind Man with Lambert Wilson and Jacques Gamblin, directed by Xavier Palud, and Love Lasts 3 Years directed and adapted by Frédéric Beigbeder from his eponymous novel.

• Next publication

29 June 2010 (after market closure): Consolidated annual results for FY 2010/11

ABOUT EUROPACORP

EuropaCorp ranks amongst the top European film studios. Founded in 1999, EuropaCorp's different activities include production, theater distribution, home entertainment, VOD, sales of TV rights for France as well as sales of international rights, partnerships and licenses, original soundtrack production and publishing. The Group has also been producing TV drama since 2010. EuropaCorp's integrated financial model generates revenues from a wide range of sources. With films from a wide range of genres and a strong presence in the international market, the Group has produced some of the latest French worldwide record-breaking successes. EuropaCorp's catalogue includes 500 films and the company employs 120 permanent staff members. More information on www.europacorp-corporate.com

Contacts

EuropaCorp Image Sept Séverine Madinier - Investor relations Claire Doligez - Roxane Planas

Tel: +33 1 53 83 03 03 Tel: +33 1 53 70 74 70

cdoligez@image7.fr rplanas@image7.fr

EuropaCorp is listed on Euronext Paris - Compartment C by NYSE Euronext ISIN: FR0010490920 - Mnemonic: ECP