Seven Arts Pictures (OTCBB: SAPXF) is a very profitable company, actively engaged in financing, producing, and distributing feature length movies at 50% gross profit. 7 Arts owns their own distribution company and distributes their movies worldwide, first to movie theaters, then Pay Per View (PPV), then to DVD retailers, and finally to pay and free TV channels. The Company’s strategy is to produce or acquire very profitable movies that they can “pre-sell” to distributors and virtually guarantee the profitability of each movie based on DVD and PPV revenues even if there is very limited or no theatrical release. Such “limited theatrical” and “straight to DVD” films frequently produce the most substantial ROI and almost no risk, because they are pre-sold before they are produced. Seven Arts has been growing very quickly. They made 7 movies this year in the horror, teen, drama, and family entertainment genres, areas which Seven Arts will continue to pursue aggressively in the future. The Company will finance, produce, and distribute, 4-7 movies each year but they are focused on projects with great directors and casts that allow the Company to limit its own capital expenditure and guarantee profitability. With such a strategy in place, Seven Arts Pictures anticipates that it will be able to increase its library of more than twenty films to between 100 and 150 titles within the next five years. This past year ending June 30th 2008, they proved the viability of their business model by producing 7 movies and recording estimated revenues of $16.5 Million and estimated profits of approximately $4 Million.

The management team is exceptional. The CEO was the former head of a NYSE-listed movie company called Coralco, and during his tenure they broke several records, including producing the number one worldwide gross revenue movies two years in a row with Terminator 2 and Basic Instinct.