Seven Arts Pictures plc Announces 1-for-5 Reverse Stock Split

Seven Arts Pictures plc SAPX determined that it is in its best interests for its ordinary shares to continue to be traded on the NASDAQ Capital Market. The Company meets the share maintenance standards for NASDAQ other than the share price. The minimum share price required by the NASDAQ to continue trading in the Company's ordinary shares is $1.00. The share consolidation approved by the shareholders will occur by a 1-for-5 reverse split and is designed to increase the price of the Company's ordinary shares to an amount sufficient to meet NASDAQ's share maintenance standards. The terms of the consolidation and reverse split are to issue one New Ordinary Share of £1.25 each in the capital of the Company for every five existing Ordinary Shares of £0.25 each held on the record date as at the close of business on May 7, 2011. Since the resulting par value will be £1.25, management has determined that the par value trading ordinary shares should be divided into one ordinary share of £0.25 par value and one deferred share £1.00 par value by a resolution to that effect.