Professional Motion Picture Production and Distribution NEWS

Studio acquires worldwide distribution rights to Gaghan's first film since Oscar-Winning "Syriana".

(Santa Monica, CA) Lionsgate (NYSE: LGF), announces that it has acquired worldwide distribution rights to the latest film by Academy Award(R)-winning writer and director Stephen Gaghan (TRAFFIC, SYRIANA). Gaghan will direct and produce the film, a character-driven action thriller that he is co-writing with Shannon Burke. Allyn Stewart and Kipp Nelson are executive producers. The announcement was jointly made by Joe Drake, Lionsgate Co-Chief Operating Officer and Motion Picture Group President, and Alli Shearmur, Lionsgate President of Motion Picture Production.

Says Shearmur, "We are very excited to be in business with Stephen Gaghan, a master storyteller who has raised the bar for character-driven suspense in contemporary film. Steve has earned the right to have greater control over the creative content of his films along with a meaningful participation in its commercial success. It's the kind of deal that Lionsgate is uniquely positioned to offer superior creators like Steve, and the formula works beautifully for all involved -- for Steve, for Lionsgate, and not least, for audiences looking for smart, thrilling entertainment."

Says Gaghan, "Lionsgate as a studio has a proven track record in delivering great genre hits, and I'm impressed by the acumen and commitment of the entire team. Joe, Alli, and Wolfgang believe in putting the filmmaker at the center of the process, and they've built a next-generation business model that allows filmmakers to participate as true partners in the economic value they're generating. It's an attractive and innovative way to do business, which hopefully will lead to greater risk-taking in the exploration of established genres."

Wolfgang Hammer, Lionsgate Senior Vice President of Motion Picture Production, brought the project to Lionsgate and will supervise with Shearmur. The deal was negotiated for Lionsgate by Hammer, and for Gaghan by David Wirtschafter of WME and Steve Warren of Hansen, Jacobson, Teller, Hoberman, Newman, Warren & Richman.

Synopsis

All global activities are local somewhere... an elite, highly trained, deep cover operative loses everything, ultimately disappearing into Brooklyn, where he must start over. He washes up as a beat cop, only to discover the global organization he was dedicated to fighting is also operating in his new backyard.

About Lionsgate

Lionsgate (NYSE: LGF) is a leading next generation studio with a strong and diversified presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. The Company has built a strong television presence in production of prime time cable and broadcast network series, distribution and syndication of programming through Debmar-Mercury and an array of channel platform assets, including TV Guide Network in partnership with JPMorgan's One Equity Partners and Allen Shapiro, the Epix multiplatform channel expected to launch in October 2009 with partners Viacom and MGM, the FEARnet branded horror channel with partners Comcast and Sony, and the KIX and Thrill branded action and horror channels in Asia. Its feature film business achieved a number one box office opening weekend in September 2009 with the eighth film in the Tyler Perry franchise, I CAN DO BAD ALL BY MYSELF, with the sixth film in the Saw franchise opening in October 2009. The Company's home entertainment business has grown to more than 7% market share and leads the industry in its box office-to-DVD revenue conversion rate. Lionsgate handles a prestigious and prolific library of approximately 12,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate brand remains synonymous with original, daring, quality entertainment in markets around the world.

www.lionsgate.com