Seven Arts Entertainment Inc (SAPX)

[keekee]

THIS IS FROM THE CEO, NOT ME:

"I also would like to address the recent substantial decline in the Company's stock price. As of the market close on June 1, 2011, SAPX stock was trading at approximately $3.00 per share. Since then, we have witnessed a sharp decline from that level. Like you, I have been deeply concerned over this unwarranted shift in our stock valuation.

Management does not believe that this decrease in stock price is related to any specific adverse event regarding the Company, nor do we believe that it is representative of the Company's operations or financial condition, both of which have improved during this time. We have received reports from stockholders and others of "manipulation" or short-selling of our common stock in violation of applicable securities rules and regulations. We have contacted the relevant regulatory authorities on this matter."