GrowthGate Acquires Part of Leading Digital Content and Animation Firm "Rubicon"

DUBAI, United Arab Emirates--(Business Wire)--
GrowthGate Capital Corporation, the GCC based specialist buyout firm, announced
that it has reached a final agreement to acquire 30% of Rubicon, MENA`s leading
digital content production & animation company. Rubicon is a pioneer in k-12
education content, currently used in many countries across the region such as
Jordan, Oman, Algeria and Morocco. The company has the largest 2D and 3D
animation studio in the Middle East, and is executing location-based
entertainment projects in two destinations of above a billion dollars
development budgets. Rubicon is also involved in the licensing and merchandizing
business of its own IP in addition to the IP of major studios and independent
parties in the U.S. In October 2008, MGM studios and Rubicon announced that they
are producing new episodes of MGM's Pink Panther series to air on Cartoon
Network channels worldwide. The 78 episodes are scheduled to be completed end of
2009 while talks about production of subsequent seasons of the Pink Panther &
Pals are currently underway. Rubicon is the creator of "Ben & Izzy" a successful
children TV series that aired in Ramadan 2008 on MBC. The series is based on the
adventures of two youngsters: one American and one Arab who travel back through
ancient times and meet a glorious band of scientists, travelers and poets,
taking viewers on a fantastic new journey in each episode. "Ben & Izzy" is a
contestant at the International Emmy`s under the Children Category Award at the
2009 Cannes Festival. Rubicon has recently also started the production of a 3D
CG theatrical movie about the "Life and Adventures of Santa Claus" for worldwide
release in December 2011. Rubicon operates out of Amman, Dubai, L.A., and
Manila. The company forecast revenues for 2010 are in excess of $100 million,
and it plans to invest circa US$M75 over the next three years in various
productions. Both GrowthGate and Rubicon being privately held, the value of the
transaction was not disclosed.

Ms. Randa Ayoubi, founder and CEO of Rubicon stated: "We are very excited to
partner with GrowthGate whom we found to be an investor with vision and
foresight, not just a financial investor. GrowthGate with its forward-thinking
mandate, professional management and results-driven ethos, seems to be a
nurturing ground for regional champions, something that is still largely lacking
in the Middle East". Ms. Ayoubi added: "The animation landscape in the Middle
East, as well as, edutainment has not taken centre-stage in the boom times of
2005-2007. Other sectors overshadowed the opportunities that lay ahead in this
growing segment which addresses hundreds of thousands of students and millions
of young viewers". The industry remains fairly untapped and the estimated pent
up demand for animation in the region remains significant. In recent years
(2007) Dubai launched the Maya Academy of Advanced Cinematics (MAAC) to provide
students training through different courses; and Jordan has established the Red
Sea Institute of Cinematic Arts, chaired by Ms. Ayoubi, in partnership with the
University of Southern California - School of Cinematic Arts. Further commenting
on this transaction, Ayoubi said "The creative value chain of Rubicon is quite
unique in the emerging markets where few animation firms combine creative
content with high-quality production capacity, proprietary IP developments and;
co-partnership projects with major US animation studios".

GrowthGate -managed by Keystone - follows a `buy and build` investment strategy
that is set on partnering with the management of growth-orientated businesses
and, together, steering their courses into becoming enduring, large-scale
organizations. This deal marks the fifth direct equity investment by GrowthGate
since its capitalization in mid 2007, and the first in the `Edutainment &
Animation` sector. GrowthGate`s portfolio companies already comprise: Able
Logistics Group (logistics & transport), Gama Aviation Holding (managed-private
jets and aviation services), Roots Group (construction-related materials); and
Averda International (environmental & waste management services).

Source: ME Newswire

GrowthGate
Paula Rizk, +961-1989400
Corporate Manager
paularizk@keystone-rp.com

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