Mr. Rory Armes reports

GENER8 AND PRIME FOCUS ENTER INTO TECHNOLOGY LICENSING PARTNERSHIP

Gener8 Media Corp. has entered a licensing and 3-D conversion partnership with the Prime Focus Group. According to the terms of the definitive agreement, Prime Focus will enter into an exclusive worldwide licence to use the company's proprietary 3-D conversion technology throughout the entertainment industry. The Gener8 brand and team -- which have become synonymous with top-quality 3-D conversion in Hollywood -- will continue to provide even more capacity for the 3-D conversion business with help from the Prime Focus worldwide work force. This will give Hollywood more confidence in Gener8's ability to perform 3-D conversion on a larger volume of movies. Further, by licensing the company's technology, Prime Focus will push the quality and technical standards of 3-D even higher.

"We could not hope for a better partner in this transaction, and we strongly believe the partnership will be good for Hollywood and the 3-D conversion industry," said Rory Armes, Gener8 chief executive officer. "This is the absolute perfect agreement for both parties: It facilitates the spread of technology to help improve the quality for all in the industry, while also allowing Gener8 to prove it can handle greater volume, which has been what has held back Gener8's ability to grow. It is exciting to tap into Prime Focus's production systems, experience and work force."

"We are focused on building a comprehensive creative services business, with an emphasis on visual effects and 3-D conversion services. Our strength to date has been our significant offshore capabilities, which have now been enhanced by our technology partnership with Gener8. As well, with our recent merger with Reliance MediaWorks, we can leverage the Reliance infrastructure as a back end to help Gener8 increase capacity," said Namit Malhotra, Prime Focus chief executive officer. "This partnership will harness the strengths of both companies to create the best options for Hollywood in terms of 3-D conversion and visual effects and leverage the existing work force and scale of Prime Focus's production capacity in India."

Upon the transaction closing, Prime Focus will enter into a five-year worldwide exclusive licence agreement to use its 3-D technology. Total consideration payable by Prime Focus to the company over the five-year period will range between $11.5-million to $16.5-million. The company and Prime Focus will also enter into a technology services agreement, where the company will provide technical service and support on a cost recovery basis. Proceeds from the transaction will be used to expand the company's 3-D technology, as well as the company's other new and disruptive technologies, Cumul8 and Reelhouse.

The transaction is subject to customary closing conditions, including obtaining all requisite regulatory and shareholder approvals. The company has set a meeting date of Feb. 25, 2015, for shareholder approval of the transaction. Further details will be outlined in an information circular distributed in advance of the meeting. If approved, closing is anticipated to occur shortly thereafter.

About Prime Focus

Prime Focus, the world's largest integrated media services powerhouse, employs over 5,500 professionals in 16 cities across four continents and seven time zones. It provides end-to-end creative services (visual effects, stereo 3-D conversion and animation), technology products and services (Media ERP suite and cloud-enabled media services), production services (shooting floors/sound stages and equipment rental), and postproduction services (digital intermediate, sound and picture post) to studios, broadcast and advertising industries.

Prime Focus is behind path-breaking technologies like Clear (hybrid cloud-technology-enabled Media ERP suite), prime-time Emmy-Award-winning DAX Digital Dailies and View-D (stereoscopic 2-D to 3-D conversion process). Leveraging its global digital pipeline and pioneering delivery model, WorldSourcing, it partners content creators at every stage of the process, ensuring creative enablement, workflow efficiencies and cost optimization.

In mid-2014, Prime Focus Technologies acquired DAX, a leading provider of cloud-based production workflow and media asset management applications, Prime Focus World merged with Double Negative, one of the world's foremost providers of visual effects, and Reliance MediaWorks merged its global film and media services business with Prime Focus Ltd.

Listed on the Bombay Stock Exchange and the National Stock Exchange of India, Prime Focus has operations in Bangalore, Beijing, Cape Town, Chandigarh, Delhi, Goa, Hyderabad, Johannesburg, Kolkata, London, Los Angeles, Mumbai, New York, Singapore, Toronto and Vancouver. For more details, visit the Prime Focus website.

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