Lionsgate Makes Equity Investment in Break.com

Lionsgate Makes Equity Investment in Break.com

Partnership With Leading Online Video Property Designed To Continue Leveraging Lionsgate Content Into Digital Media Space, Accelerate Online Channel Growth

SANTA MONICA, Calif., July 11 /PRNewswire-FirstCall/ -- In a move designed to continue expanding its content leadership into the digital space, Lionsgate (NYSE:LGF), the leading independent filmed entertainment studio, has made a strategic investment in Break.com, the leading independent online video entertainment destination for young men, the two companies announced today.

The partnership will allow Lionsgate to leverage its vast array of content, including its library of more than 11,000 motion picture titles and television episodes, into Break.com's fast-growing online video entertainment channel, which reaches more than 17 million monthly unique visitors. The two companies will also strategize innovative opportunities for Lionsgate to distribute its current and upcoming feature films, television programming, home entertainment and other new content through Break's online channel, which is targeted primarily to an 18-to-34-year-old male demographic. In addition, the investment will give Lionsgate access to Break's cutting edge young talent pool and potential programming development opportunities, and it will provide that talent with a pathway to future project development and distribution.

"Break is one of the freshest and most original platforms for content in the new media space," said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. "They immediately appealed to us as an ideal fit. They serve a large niche that we know well, and they are another entrepreneurial partner whose culture, business plan, and creative sensibilities blend seamlessly with our own."

"We first interacted with Break as an advertiser, and we had impressive success there," added Lionsgate Vice Chairman Michael Burns. "We came to recognize them as a premier platform for integrating content and advertising as well as the leading online site serving the young male demographic."

"Lionsgate's tremendous arsenal of cutting edge content and its commitment to innovative growth in the digital space make it the perfect partner," said Break Chief Executive Officer Keith Richman. "This alliance will further accelerate our growth into a world recognized entertainment channel, providing our advertisers with even greater opportunities to sponsor premium and user-generated content and continuing our strategy of accessing daring niche properties that strengthen our brand and expand our reach."

Break has quickly established a unique reputation within the online video and social networking communities for its hip, edgy, original user-generated, semiprofessional and professional content with movies, video games and animation. It is one of the largest independent digital entertainment destinations and, according to Hitwise Media, the 11th-ranked destination overall for males with over 17 million unique visitors, 550 million page views and 300 million video streams per month. Break currently has original content partnerships with NBC Digital Studios, Endemol and Twisted Pictures.

Lionsgate is the leading independent filmed entertainment studio, winning the 2006 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 11,000 motion picture titles and television episodes 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. The Company has recently expanded its content leadership into the digital space, establishing content deals with more than a dozen digital delivery platforms in the past year and a half, including Apple iTunes, Amazon and Microsoft, as well as launching FEARNet.com in October 2006, its branded channel with partners Comcast and Sony that has already grown into one of the most successful VOD and Internet sites in the industry.

Founded in 1998, Break.com is the Internet's leading cross-platform, digital entertainment network, offering edgy content to millions of Internet users and mobile subscribers around the world. With more than 17 million unique monthly browsers tuning in to enjoy the Web's largest and one of the most rapidly growing libraries of original videos and images, Break.com offers advertisers tremendous opportunities to market directly to a young male demographic. Break.com empowers its audience to become content providers with an easy to use platform that allows them to upload, distribute and monetize their original content, whether it is homegrown or commercial grade. Alexa.com, a leading Internet ranking service, currently ranks Break.com as the 73rd most popular web site in America.

www.lionsgate.com

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

Kelli Easterling
Lionsgate
310-255-4929
keasterling@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 the risk factors as set forth in Lionsgate's Form 10-K filed with the Securities and Exchange Commission on May 30, 2007. 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.

First Call Analyst:
FCMN Contact: keasterling@lgf.com

Source: Lionsgate

CONTACT: Peter D. Wilkes, +1-310-255-3726, pwilkes@lionsgate.com, or
Kelli Easterling, +1-310-255-4929, keasterling@lionsgate.com, both of
Lionsgate

Web site:

http://www.lionsgate.com/
http://www.break.com/

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