Relativity Continues Expansion in China

Appointed International Distribution Partner by China Film Promotion International to Distribute Chinese Films Overseas;

Announces Equity Investment and Production and Distribution Agreement with Jiangsu Broadcasting Corp;

Signs Strategic Advisory Agreement with Industrial and Commercial Bank of China

(Beverly Hills, Calif. and Shanghai, China) June 16, 2014 – Relativity Media (“Relativity”), a next-generation media company, today announced at the Shanghai International Film Festival that it has been appointed as the strategic international distribution partner for Chinese language films licensed by China Film Promotion International (“CFPI”), a state-owned government agency that oversees the promotion and commercial distribution of Chinese films overseas.

In addition, Relativity and Jiangsu Broadcasting Corp. (“JSBC”) announced a partnership agreement to develop, co-finance, co-produce and distribute film and television content for both the international and Chinese markets. As part of the partnership, JSBC will make an equity investment in Relativity.

Relativity also announced it has signed a strategic advisory agreement with Industrial and Commercial Bank of China Limited (“ICBC”). SeedShine Capital, a Chinese investment firm focused on the media and entertainment sector, has entered into a binding agreement to invest in Relativity. Financial terms of the agreements were not disclosed.

“Relativity has deep and growing ties to China, one of the world’s most dynamic and vibrant film markets, and the partnerships we announced today will further strengthen the robust foundation we have built in China,” said Ryan Kavanaugh, CEO of Relativity. “The partnerships with CFPI and JSBC will deepen our relationship with the Chinese media and entertainment industry and provide a world-class platform from which to co-develop Chinese and international film and television content from two leading organizations. Finally, the strategic advisory agreement with ICBC, the world’s largest bank, and the investment by SeedShine are strong endorsements of Relativity’s strategy and we look forward to a mutually beneficial relationship with Chinese companies and financial institutions.”

In 2013, box office revenues in China grew 27 percent over the prior year to $3.6 billion, making China the first international market to exceed $3 billion in box office. That growth is only expected to continue; by one estimate the Chinese box office could be worth as much $5 billion in value potential for Hollywood studios by 2017, including imported and local productions.[1]

[1] BofA Merrill Lynch Global Research: “China Box Office Worth $5 Billion to Studios by 2017” (Oct. 2013)