Lionsgate Announces Redemption of 4.875% Convertible Senior Subordinated Notes Due 2010

Lionsgate Announces Redemption of 4.875% Convertible Senior Subordinated Notes Due 2010

SANTA MONICA, Calif. and VANCOUVER, British Columbia, Oct. 18
/PRNewswire-FirstCall/ -- Lionsgate (NYSE:LGF), the leading independent filmed entertainment studio, announced today that it is sending a notice of redemption to the holders of its 4.875% convertible senior subordinated notes due 2010. Lionsgate sold $60.0 million of the notes in December 2003 as part of its funding of the acquisition of Artisan Entertainment.

Lionsgate will redeem the notes on the optional redemption date of December 15, 2006 at 100% of their principal amount, plus accrued and unpaid interest, if any. The noteholders will have the right to elect to convert their notes to the Company's common shares pursuant to the indenture at any time prior to the close of business on December 14, 2006.

"By redeeming and converting these notes, we are eliminating approximately $2.9 million of interest cost each year and continuing to strengthen our balance sheet," said Lionsgate Vice Chairman Michael Burns. "We currently have a significant cash balance, a previously reported backlog of more than $240 million and no corporate bank debt. Our remaining $325 million of long-term convertible debt now has a fixed blended rate of 3.31%."

Lionsgate is the leading independent filmed entertainment studio, winning this year's Best Picture Academy Award (R) for Crash, and the Company is a premier producer and distributor of motion pictures, television programming, home entertainment, family entertainment and video-on-demand content. Its prestigious and prolific library of more than 9,000 titles is a valuable source of recurring revenue and a foundation for the growth of the Company's core businesses. The Lionsgate brand is synonymous with original, daring, quality entertainment in markets around the globe.

www.lionsgate.com

For further information, please contact:
Peter D. Wilkes
310-255-3726
pwilkes@lionsgate.com

The matters discussed in this press release include forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including risk factors as set forth in Lionsgate's 10-K filed with the Securities and Exchange Commission on June 14, 2006. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

FCMN Contact: pwilkes@lgecorp.com

Source: Lionsgate

CONTACT: Peter D. Wilkes of Lionsgate, +1-310-255-3726,
pwilkes@lionsgate.com

Web site: http://www.lionsgate.com/

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