Imagi Secures US$30 Million (HK$234 Million) in Financing

Sep 16th 2008

Hong Kong (September 16, 2008) – IMAGI International Holdings, Limited (HKSE Stock Code: 0585) today announced that it had raised US$30 million in financing through two separate subscription agreements.

The first agreement, the terms of which were originally announced to the stock exchange on September 3, is with a wholly-owned subsidiary of Shui On Holdings Limited. The subscriber will invest US$10 million for approximately 90.6 million new shares at HK$0.86 per share. Under the original agreement, Sunni International Limited, a controlling shareholder in IMAGI, was to provide the Shui On subsidiary with an additional 40 million gift shares. Sunni has since advised that it will transfer a further 30 million gift shares to the new investor, bringing the total shares owned by the new investor to 209.95 million (including 49.35 million shares already owned), representing a 10.99% ownership stake in IMAGI as enlarged by the US$30 million subscription shares.

The second agreement, announced to the stock exchange on September 12, has been made with Mehta-IMAGI LLC, which will invest US$20 million for approximately 181.2 million new shares at HK$0.86 per share, representing a premium of approximately 68.63% to IMAGI's closing price on September 4. Sunni has agreed to transfer an additional 140 million gift shares to Mehta-IMAGI LLC bringing the total shares owned by Mehta-IMAGI LLC to 321.2 million, representing a 16.82% ownership stake in IMAGI as enlarged by the US$30 million subscription shares.

Both agreements are expected to be completed later this month, once regulatory procedures have been completed.

“Investors have been visiting our studios to see firsthand the quality and commercial potential of the films IMAGI has in production. This investment round marks a major vote of confidence that our films will compete successfully with the best that Hollywood has to offer,” said Douglas Glen, CEO of IMAGI.

IMAGI has put together a truly exciting package including world class filmmakers, superior production economics, and the ability to reach both the traditional Hollywood market and the emerging Asian market. They have a real shot at becoming the next Pixar or Dreamworks Animation,” said Jeff Joseph on behalf of Prescient Advisors, LLC, the managing member of Mehta-IMAGI, LLC.

The proceeds of the two transactions will be used for the development of four full-length, feature CG imagery animation movies, including Astro Boy and Gatchaman, which are scheduled to be released in 2009 and 2010 respectively.

Earlier this year, IMAGI announced that it had entered into a global alliance with Summit Entertainment, whereby Summit will distribute Astro Boy worldwide, except for IMAGI's reserved territories of Japan, Hong Kong and China.

About IMAGI

Imagi International Holdings Limited (“IMAGI”) is listed on the main board of the Hong Kong Stock Exchange (Stock Code: 0585). IMAGI's principal business is the development and production of computer graphics animated theatrical feature films. IMAGI's first theatrical movie TMNT was released in March 2007, opening number one in U.S. box office revenue, only the third time in history that an Asian-made film has achieved that honour. IMAGI has development operations in Los Angeles, California, and CG production studios at its Chai Wan (Hong Kong) headquarters.


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