Ingenious Media Active Capital

Acquiring Interests in Cream and Stage Three Music

IMAC, the AIM quoted media investment company, today announces that it has entered into a binding agreement to acquire UBS Capital (Jersey) Ltd's ('UBS') limited partnership interest in Ingenious Ventures L.P. for a total cost to IMAC of £6.1 million (comprising the purchase price as well as additional funding commitments). Ingenious Ventures L.P. is a media investment fund formed in 2001 by members of the Ingenious Media group and UBS. After the advertisement of this acquisition in the London Gazette, expected to occur on Monday 11 August 2008, IMAC will have a 90% limited partnership interest in Ingenious Ventures L.P.. Ingenious Media Limited is retaining its 10% limited partnership interest.

Ingenious Ventures L.P. made five investments following its inception and has, since 2001, successfully exited three of those five investments. Two companies remain in the portfolio, Cream Holdings Limited ('Cream') and Stage Three Music Limited ('Stage Three Music').

Stage Three Music is an independent music publishing company which acquires and exploits existing music catalogues as well as signing new writers in the creation of new copyright in songs. Since its inception it has acquired the rights to Aerosmith, ZZ Top and many other songwriters. The CEO, Steve Lewis, is formerly of Virgin Music Publishing and Chrysalis. Stage Three Music generated £2.84 million of Net Publishers' Share ('NPS') in the financial year to December 2007.

Cream is a live events company based around the Cream dance brand. Its main activities are festivals in the UK and licensed shows overseas. The company also operates club nights in both Liverpool and Ibiza and has bar activities and a compilation record label. Its most well known event, Creamfields, is held in August every year and is celebrating its 10th anniversary this year with a two day event over the August Bank Holiday. Kasabian are headlining the show. Cream delivered EBITDA of £682,000 in its most recent audited accounts for the year ended January 2007.

Ingenious Ventures, a division of Ingenious Asset Management Limited, will continue to manage both IMAC and Ingenious Ventures L.P.. IMAC will not be charged management or incentive fees at both the IMAC and Ingenious Ventures L.P. levels. Such management and incentive fees will be paid at either the IMAC or Ingenious Ventures L.P. level.

This acquisition received prior approval, at a meeting of the Company's board of directors, from all directors who are independent from Ingenious Ventures and the Ingenious group.

Commenting on the investment, Patrick Bradley, Director of Ingenious Ventures, said:

'We remain really excited by Cream and Stage Three Music. Both portfolio companies have tremendous potential and have shown strong growth since their creation. We look forward to continuing our working relationship with both companies and taking them through to the next stage in their development.'

Extended share re-purchase programme

The Board of IMAC has approved the implementation of an extension to the Company's share re-purchase programme, in addition to the purchases that have already been made. The Board has allocated an amount up to £10 million to be used for this purpose. It is intended that shares repurchased will be held in treasury, subject to the limit set by Guernsey Companies Law of 10% of the Company's issued share capital. The maximum number of shares to be purchased on any dealing day shall be 25% of the monthly trading volume of the shares based on the volume traded in the month preceding the month of public disclosure of the Buy-Back. The maximum price payable will not exceed 105% of the average closing price over the previous five trading days.

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For further information, please visit www.imaclimited.com or contact:

Ingenious Ventures
Sanjay Wadhwani / Patrick Bradley
sanjay.wadhwani@ingeniousmedia.co.uk
Tel: +44 20 7319 4000

Landsbanki (NOMAD and Broker)
John Craven / Fred Walsh
john.craven@landsbanki.com
Tel: +44 20 7426 9000

Tavistock Communications (PR advisor to IMAC)
shudson@tavistock.co.uk
Tel: +44 20 7920 3150

Note to Editors

Ingenious Media Active Capital Limited is an investment company which aims to provide investors with capital growth from equity or equity related investments in predominantly unquoted media and entertainment companies. IMAC is an initiative of, and its investments are managed by, Ingenious Ventures which is the private equity division of the Ingenious Group and a trading division of Ingenious Asset Management Limited.

This information is provided by RNS
The company news service from the London Stock Exchange