Optimum Releasing/StudioCanal and Lionsgate U.K. Forming Joint Venture to Acquire Elevation Sales

Optimum Releasing/StudioCanal and Lionsgate U.K. Forming Joint Venture to Acquire Elevation Sales

CANNES, France and SANTA MONICA, Calif., May 18 /PRNewswire-FirstCall/ -- Optimum Releasing/StudioCanal and Lionsgate U.K. announced today that they will jointly acquire Elevation Sales. Elevation will now handle the joint sales and distribution of DVD product for both Optimum Home Entertainment and Lionsgate U.K., continuing its growth within the U.K. home entertainment market. The parties have executed letters of understanding and are now negotiating the definitive agreements.

The venture builds upon both distributors' continued growth in the home entertainment sector. As a result of the acquisition, Elevation Sales will become one of the strongest suppliers to the U.K. home entertainment market with a forthcoming DVD roster that includes strong mainstream releases such as SAW IV and CAPTIVITY, critically acclaimed successes THIS IS ENGLAND and THE LIVES OF OTHERS and classic catalogue releases DIRTY DANCING and THIS IS SPINAL TAP.

The acquisition will become operational in September, and the company will retain the name Elevation Sales and its current management team. Founded by Graham Davidson in January 2004, Elevation has already sold more than 15 million DVDs in the U.K. for a client base that includes Optimum, Buena Vista Home Entertainment and MVM.

Optimum and Lionsgate U.K. both noted that, as part of the venture, Elevation will capitalize on opportunities for distribution of third-party product in addition to Lionsgate and Optimum releases. The companies also expect Elevation to continue diversifying its DVD product portfolio into such areas as TV-to-DVD releases.

Lionsgate praised its previous longstanding relationship with Fox's home video distribution operation in the U.K., noting that the arrangement had reflected a high level of quality and professionalism. Lionsgate made the shift because of the entrepreneurial growth opportunities afforded by the joint venture with Optimum and the acquisition of Elevation.

Optimum Releasing, acquired by StudioCanal last year, continues to achieve great success in the U.K. theatrical distribution and home entertainment sectors. Recent theatrical successes include Shane Meadows' BIFA-winning drama THIS IS ENGLAND, and upcoming titles include Cannes opener MY BLUEBERRY NIGHTS and IN THE VALLEY OF ELAH. Optimum Home Entertainment recently enjoyed its fastest selling DVD ever with the release of PAN'S LABYRINTH.

Lionsgate U.K., formerly Redbus Film Distribution, was acquired in October 2005 by Lionsgate, the leading independent filmed entertainment studio, and has continued its steady growth and diversification as a premier U.K. distribution company since then. Lionsgate U.K. recently distributed the box office successes SAW III and EMPLOYEE OF THE MONTH and scored four Oscar(R) nominations in 2006 with GOOD NIGHT, AND GOOD LUCK.

Graham Davidson, Managing Director of Elevation Sales, said: "I am delighted that Elevation will be at the heart of this new venture between Optimum and Lionsgate. In recent years both companies have become key players in the DVD industry across both new release and back catalogue titles. The team and I are very excited about bringing their combined product release slate to the market, alongside releases from our existing and valued clients Buena Vista Home Entertainment and MVM."

Danny Perkins, Optimum Releasing's Managing Director added: "We have enjoyed great success and remarkable growth working with Elevation over the last four years and we are thrilled about the opportunities and market presence that a combined operation with Lionsgate delivers."

"Both Optimum and Elevation are an ideal fit for Lionsgate U.K.'s entrepreneurial growth culture," said Zygi Kamasa, cofounder and Chief Executive of Lionsgate U.K. "Whilst we have had an excellent relationship with Fox as our recent sub-distributor, we are delighted to now tap into the expertise and successful track record of Graham Davidson and his team as we continue our growth across several lines of business. We are also pleased that our partnership with Optimum Releasing further strengthens our longstanding relationship with our friends at StudioCanal."

For further information please contact:

For Optimum Releasing
Emma Pycroft
+ 44 7817 147973
emma@optimumreleasing.com

For Lionsgate
Peter D. Wilkes
310-255-3726
pwilkes@lionsgate.com

About Optimum Releasing

Established in May 1999, Optimum Releasing, part of StudioCanal*, is now enjoying its seventh year in film and DVD distribution.

The company has established a reputation for an innovative approach to distribution and has enjoyed success with a varied mix of film titles across all genres. A passion for film and commitment to creativity is central to all of Optimum's activity.

Optimum Home Entertainment, the company's standalone DVD division, was established in 2004 and has released over 400 titles to date. Optimum Releasing has also expanded its production ambitions with the establishment of Warp X with Warp Films, the Film Council and Film Four.

Recent and upcoming releases include THE HOST, Guillermo del Toro's BAFTA, Oscar(R) nominated PAN'S LABYRINTH, David Lynch's INLAND EMPIRE and Shane Meadow's THIS IS ENGLAND.

*On May 5th 2006 Optimum Releasing agreed to a deal for StudioCanal to acquire Optimum Releasing including its theatrical and home entertainment distribution operations. StudioCanal is the film, production and sales distribution arm of French media group, Canal+.

About StudioCanal

StudioCanal, the largest European film distribution operation, was created in 1987. It is a fully owned subsidiary of the Canal + Group, which also controls France's largest pay television company, Canal +, and the country's leading satellite operator, CanalSat.

Its theatrical operation is Number 1 amongst French distributors. StudioCanal Video, is the number 2 French video label.

Its vast library of over 5000 films includes more than 1400 British titles such as: THE THIRD MAN, THE EALING COMEDIES, WICKER MAN, DON'T LOOK NOW, DAMBUSTERS, THE SERVANT, and others.

American titles in the library include: THE GRADUATE, THE PRODUCERS, DEER HUNTER, RAMBO, TERMINATOR 2, and THIS IS SPINAL TAP.

With more than 1900 French films, StudioCanal owns the largest French film library. Titles include: Renoir's GRAND ILLUSION, Godard's BREATHLESS, Bunuel's BELLE DE JOUR and Melville's CERCLE ROUGE. StudioCanal has also cofinanced and distributed such films as Kassovitz's LA HAINE and Cedric Klapisch's POUPEES RUSSES.

For the past seven years, StudioCanal is proud to have partnered with Universal in cofinancing and distributing the films of Working Title.

StudioCanal has acquired French rights in such films as MILLION DOLLAR BABY, BABEL and the upcoming GOOD SHEPHERD.

StudioCanal has financed or cofinanced David Lynch's INLAND EMPIRE and Wong Kar Wai's MY BLUEBERRY NIGHTS, which was sold internationally by StudioCanal's in-house foreign sales division.

About Lionsgate U.K.

Lionsgate U.K., formerly Redbus Film Distribution, is the diversified U.K.-based filmed entertainment arm of Lionsgate (NYSE:LGF), the leading independent filmed entertainment studio. The company was acquired by Lionsgate in October 2005 and has established a reputation as a leading distributor of commercially successful and critically acclaimed product, recently releasing the box office hits SAW III and EMPLOYEE OF THE MONTH in the U.K. The company garnered four Academy Award (R) nominations in 2006 for GOOD NIGHT, AND GOOD LUCK .

Parent company Lionsgate is a premier producer and distributor of motion pictures, television programming, home entertainment, family entertainment and video-on-demand content. The winner of the 2006 Best Picture Academy Award (R) for CRASH, the Company has earned 27 Oscar nominations in the past eight years, more than any other independent studio, and releases approximately 20 feature films annually. Its prestigious and prolific library of more than 10,000 titles is an important source of reliable and recurring revenue and serves as a foundation for the growth of the Company's core businesses. The Lionsgate brand name is synonymous with original, daring, quality product in markets around the globe.

Source: Lionsgate

CONTACT: Emma Pycroft of Optimum Releasing, + 44 7817 147973,
emma@optimumreleasing.com; or Peter D. Wilkes of Lionsgate, +1-310-255-3726,
pwilkes@lionsgate.com

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