Hong Kong (December 5, 2007) – Imagi International Holdings, Limited (HKSE Stock Code: 585 (“Imagi”) today announced the placement of HK$406 million in convertible bonds. The lead investor is Singapore-based Oxley Capital Group, with other investors including CQS Capital (London) and Winnington Capital (Hong Kong).

Imagi will use the proceeds from the convertible bond placement to finance production of its future films, including Astro Boy and Gatchaman, both scheduled for release in 2009. The films will be distributed globally by Warner Brothers and The Weinstein Company.

The zero coupon convertible bonds HKD $2 million in denomination with three year maturities. Conversion price is HKD $1.768, representing a 25% conversion premium over current market price. Assuming full conversion, the bonds would represent a stake of approximately 12.3% in Imagi, on a fully diluted basis.

“Imagi produces top-quality, Hollywood-style animated movies at significantly lower costs than its US-based competitors,” said Mark Pawley, a Director at Oxley Capital. “The economics are compelling, as are the management team, the films in production, and the upside potential of the company.”

“Imagi is pleased to welcome Oxley Capital and CQS to our investor roster,” said Douglas Glen, Co-CEO of Imagi. “They are respected investors with reputations for adding significant value to their portfolio companies.”

Astro Boy was originally created by the “god of manga,” Japan’s Osamu Tezuka, in the early 1950s. The animated television series first aired in 1963 in Japan and found great acclaim and success around the world. In the U.S., it quickly became a top-syndicated children’s show. The iconic character’s fame grew in the 1980s and 2003 with two new Astro Boy TV series attracting new generations of fans.

Astro Boy tells the story of a powerful robot boy created by a brilliant scientist in the image of the son he has lost. Our hero journeys to find acceptance in the human world, and ultimately discovers true friendship as he uses his incredible powers to help others and save Metro City from destruction.

Gatchaman originated in Japan in the early 1970s as the television series Science Ninja Team Gatchaman. Aired in the U.S. as Battle of the Planets and G-Force, it soon became a widely popular syndicated TV series.

Featuring some of the most ambitious sets and action sequences ever seen in animation, Imagi’s Gatchaman is set in a future world beset by environmental problems and extra-terrestrial invaders. The story focuses on five reluctant heroes whose remarkable genetic code makes them Earth’s only hope for survival.

www.imagi.com.hk
Imagi International Holdings Limited (“Imagi”) is a listed company (Stock Code 585) on the main board of the Hong Kong Stock Exchange. Imagi’s principal business is the development and production of computer graphics (“CG”) animated theatrical feature films. Imagi’s first theatrical movie TMNT was released in March 2007, opening #1 in U.S. box office revenue, only the third time in history that an Asian-made film has achieved that honour. Imagi has development operations in Los Angeles, California, and CG production studios at its Chai Wan (Hong Kong) headquarters.

* assumes exchange rate of HK$7.80 to US$1.00