DHX Media acquires Studio B Productions Inc.



    HALIFAX, NS, Dec. 4 /CNW/ - DHX Media Ltd. (AIM & TSX ticker: "DHX"),
aleading independent international producer and distributor of television
programming andinteractive content and the parent company of DECODE
Entertainment and Halifax Film, has acquired all the outstanding shares in
Studio B Productions Inc. ("Studio B"), a privately-owned producer of
primarily proprietary children's programming.
    Vancouver-based Studio B has a current production slate of seven shows
including Kid vs. Kat for YTV, Ricky Sprocket, Showbiz Boy! For Teletoon and
Martha Speaks for WGBH in the United States. In addition, Studio B has a
library of over 400 half-hours of children's programming content and operates
a 24,000 square foot studio with a specialty in digital and classical
animation. Studio B had projected, internally prepared, unaudited net income
of approximately $1.4 million for the year ended October 31, 2007 ("Fiscal
2007") on unaudited assets of approximately $15.3 million as at the prior year
ended October 31, 2006 (internally prepared unaudited asset totals as at the
year ended October 31, 2007, were not available at the time of this release).
    DHX Media will benefit from several new broadcaster relationships,
expanded production capabilities and a greater supply of children's
programming from which it can generate future distribution revenues.
Furthermore, the television series created by Studio B will contribute to DHX
Media's stated strategy of growing a significant library of children's content
from which revenues can be generated over multiple platforms.
    Commenting on the transaction, Michael Donovan, Chairman and CEO, said:
"We are delighted to partner with Studio B Productions as it offers DHX Media
access to a growing library, significant creative and production skills, and
outstanding children's content production capabilities. This deal will
leverage the strength of our distribution capabilities and will help add to
our growing library of productions from which we will be able to generate
recurring revenues."
    Blair Peters and Chris Bartleman, co-founders and co-CEO's at Studio B,
added: "We are very excited about this partnership. The synergies with DHX
Media and specifically their international distribution group will allow us to
focus on increasing our proprietary titles which will lead to significant
growth in worldwide distribution potential and earnings." Peters and Bartleman
will continue as co-presidents to operate Studio B as a wholly-owned
production subsidiary of DHX Media under four year employment contracts.
    The deal terms include an initial cash payment of CAD $8 million against
a total purchase price of 4.5 times the average of Studio B's Fiscal 2007 and
the year ending October 31, 2008 ("Fiscal 2008") earnings before interest,
taxes, depreciation and amortization of capital equipment ("EBITDA") up to a
maximum amount of CAD $20 million. Any further potential consideration payable
by DHX Media is subject to Studio B meeting certain financial performance
benchmarks for Fiscal 2007 and Fiscal 2008 and would be paid 30% in cash and
70% in shares of DHX Media.
    All financial information included in this press release relating to
Studio B is unaudited and has been provided to DHX Media by Studio B, which
has advised DHX Media that such information has been derived from its
financial statements that have been prepared in accordance with Canadian
generally accepted accounting principles. DHX Media has not undertaken an
audit level review of accounting practices and policies followed by Studio B
to identify all differences from those followed by DHX Media, and as a result,
the financial information relating to Studio B contained in this press release
may differ materially from that derived from Studio B's financial statements
had they been prepared in accordance with accounting practices and policies
followed by DHX Media. DHX Media has undertaken significant due diligence into
material transactions of Studio B, accounting policies and procedures,
economic benefits and risks in connection with this transaction.

    About Studio B Productions

    Headquartered in Vancouver, B.C., Canada, Studio B Productions Inc. is a
leader in the field of kids' entertainment. Studio B is the producer of
popular and award-winning properties such as Ricky Sprocket - Showbiz Boy
(seen on TELETOON and Nickelodeon worldwide), Being Ian(TM), The Amazing
Adrenalini Brothers!, Class of the Titans(TM) and George of the Jungle, a
co-production with Classic Media set to air on Cartoon Network U.S. In
addition, Studio B will launch two new properties in 2008, Kid vs. Kat, an
original series with YTV and Martha Speaks, a co-production with WGBH Boston.
For more information, please visit www.studiobproductions.com. There is no
limit to our imagination.

    About DHX Media

    DHX Media Ltd. is a leading international producer and distributor of
film and television programming and interactive content with an emphasis on
children, family and youth markets. DHX Media Ltd. shares are listed on the
Alternative Investment Market of the London Stock Exchange, AIM, and the
Toronto Stock Exchange, TSX. DHX Media's production companies, DECODE
Entertainment and Halifax Film, are the producers or co-producers of 14
original television series and theatrical releases currently commissioned for
production and maintain a growing library of over 1,750 half-hours of mostly
children and youth-oriented television productions.
    www.DHXMEDIA.com

    Disclaimer

    This press release contains forward looking statements with respect to
the Company. Although the Company believes that the expectations reflected in
such forward looking statements are reasonable, such statements involve risks
and uncertainties and are based on information currently available to the
Company. Such statements include reference to DHX Media benefiting from new
broadcaster relationships, expanded production capabilities and a greater
supply of children's programming; generation of revenues in the future over
multiple platforms that are recurring in nature; obtaining access to a growing
library, significant creative and production skills, and outstanding
children's content production capabilities; increasing Studio B's proprietary
titles; growth in Studio B's worldwide distribution potential and earnings;
and the launch of two new properties in 2008 by Studio B. Actual results may
differ materially from those expressed or implied by such forward looking
statements. Factors that could cause actual results or events to differ
materially from current expectations, among other things, include risks
related to market factors, customer contract interpretation, application of
accounting policies and principles, and production related risks, and other
factors discussed in materials filed with applicable securities regulatory
authorities from time to time including matters discussed under "Risk Factors"
in the Company's short form prospectus dated November 7, 2007 and in the
Company's Amended Annual Information Form incorporated by reference therein.
These forward-looking statements are made as of the date hereof, and the
Company assumes no obligation to update or revise them to reflect new events
or circumstances.
    %SEDAR: 00023380E




For further information:

For further information: DHX Media, Canada: Dana Landry, Chief Financial
Officer; David A. Regan, EVP, Corporate Development & IR, +1 902-423-0260; AIM
Nominated Advisors: Neil Johnson, Erin Needra, Canaccord Adams Limited, +44
(0) 20 7050 6500

Organization Profile

DHX Media Ltd.

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