POINT.360 PURCHASES HOLLYWOOD FACILITY 

June 15, 2009 / Point.360 (NASDAQ: PTSX), a leading provider of integrated media management services, today announced that it had purchased for $4.75 million an 18,000 square foot building in Hollywood into which the Company will consolidate its Highland Ave. and Eden FX operations. 

Haig S. Bagerdjian, the Company’s Chairman, President and Chief Executive Officer said: “The purchase of the building fixes our facility costs for these operations for the foreseeable future.  We will avoid the need to negotiate long lease arrangements in the expensive Hollywood market as well as improve our annual EBITDA and cash flow by approximately $0.6 million each.  We financed $1.2 million of the purchase price with a 10-year mortgage which provides for interest only payments at 7% per year with the principal being due on the tenth anniversary date.” 

Mr. Bagerdjian continued “The new location will provide operational efficiencies by combining our two Hollywood locations which now occupy approximately 39,000 square feet.  We expect the renovations to the building and move into the new location to be completed in the fourth calendar quarter at a cost of $1 to $1.5 million.”

About Point.360

Point.360 (PTSX) is a value add service organization specializing in content creation, manipulation and distribution processes integrating complex technologies to solve problems in the life cycle of Rich Media. With six locations in greater Los Angeles, Point.360 performs high and standard definition audio and video post production, creates virtual effects and archives and distributes physical and electronic Rich Media content worldwide. Point.360 provides the services necessary to edit, master, reformat and archive clients’ audio and video content, including television programming, feature films and movie trailers. 

Point.360’s interconnected facilities provide service coverage to all major U.S. media centers.  Clients include major motion pictures studios,  independent producers, advertising agencies, non-profit organizations, governmental agencies and corporations.

Forward-looking Statements

Certain statements in Point.360 press releases may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements include, without limitation (i) statements concerning the Company’s projected revenues, earnings, cash flow and EBITDA; (ii) statements of the Company’s management relating to the planned focus on internal growth and acquisitions; (iii) statements concerning reduction of facilities and actions to streamline operations; (iv) statements on actions being taken to reduce costs and improve customer service; and (v) statements regarding new business and new acquisitions.  Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievement of Point.360 to be materially different from those expected or anticipated in the forward-looking statements.  Please also refer to the risk factors described in the Company’s SEC filings, including its annual reports on Form 10-Q and Form 10-K. Such statements are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from those expected or anticipated in the forward- looking statements.  In addition to the factors described in the Company’s SEC filings, the following factors, among others, could cause actual results to differ materially from those expressed herein; (a) lower than expected net sales, operating income and earnings; (b) less than expected growth; (c) actions of competitors including business combinations, technological breakthroughs, new product offerings and marketing promotional successes; (d) the risk that anticipated new business may not occur or be delayed; (e) the risk of inefficiencies that could arise due to top level management changes and (f) general economic and political conditions that adversely impact the Company’s customers’ willingness or ability to purchase or pay for services from the Company.  The Company has no responsibility to update forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.

FOR FURTHER INFORMATION:

POINT.360
2777 N. ONTARIO STREET
BURBANK, CA 91504
NASDAQ: PTSX

AT THE COMPANY:
Alan Steel
Executive Vice President
(818) 858-1444
BURBANK, CA