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Seven Arts Announces Distribution Agreement With INgrooves/Fontana Distribution for the United States and Canada and Signing of Multi-Platinum Artist Bone Thugs-N-Harmony

(March 27, 2012)

LOS ANGELES, CA -- (Marketwire) -- 03/27/12 -- Seven Arts Entertainment Inc. (NASDAQ: SAPX) ("Seven Arts" or "Company") announced today that it has signed a distribution agreement for its subsidiary, Seven Arts Music Inc., with Fontana Distribution ("Fontana"), a leading independent record distributor, for the United States and Canada. Fontana was recently acquired by INgrooves, a privately held digital distribution company that is partially owned by the Universal Music Group, combining best-in-class digital and physical distribution to empower the independent music community. For more on Fontana, see www.fontanadistribution.com.

Seven Arts Music has signed a multi-year recording agreement with the multi-platinum recording artist Bone Thugs-N-Harmony ("BTH"). BTH's first single and album for Seven Arts Music will be distributed by Fontana, and is expected to be released in September, 2012. Bone Thugs-N-Harmony is an American hip hop group from the Glenville section of Cleveland, Ohio. They are best known for their fast-paced, aggressive rapping style and harmonizing vocals. BTH has been mainly produced by Los Angeles producer, DJ U-Neek. In 1997, BTH was awarded the Grammy for Best Rap Performance with their song "Tha Crossroads" from their E 1999 Eternal album. Since its inception in 1993, BTH has been honored with numerous other awards. BTH also collaborated with Eazy-E, 2Pac, Big Pun, and The Notorious B.I.G.

Seven Arts Entertainment CEO Peter Hoffman said: "We are very excited about moving forward with Fontana as our distributor for Seven Arts Music, including the new album and single of Bone Thugs-N-Harmony. Fontana and its parent INgrooves are the leading independent distributors of sound recordings in the United States, and our artists will be in exceptionally good hands."

Seven Arts Music CEO David Michery stated: "Bone Thugs-N-Harmony is one of the great original hip hop artists. BTH has six multi-platinum albums with more than 13 million album sales in the United States and Canada. RIAA certified sales of more than 1 million copies of BTH's last album, 'Strength and Loyalty,' in 2007 in the United States and Canada. BTH will be recorded with producer DJ U-Neek, its original producer, and we expect magic from this great group of artists."


About Seven Arts Music:
Seven Arts Music intends to develop new talent and label-establishing artists in the genres of hip hop, R&B, pop, dance and rock. David Michery's prominent career includes the production of numerous platinum albums and an executive role as Head of Urban Music for All American Communication, d/b/a Scotti Bros. Records, A&R for MCA Records and Zoo/BMG, and founder of Breakaway Entertainment and American Music Corporation.

About Seven Arts Entertainment Inc.:
Seven Arts Entertainment, Inc. is the successor to Seven Arts Pictures Plc, which was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.

Cautionary Information Regarding Forward-Looking Statements
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated.

Contact:
Seven Arts Entertainment Inc.
Peter Hoffman
323-273-3080
phoffman@7artspictures.com


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