Peace Arch, RHI in Production, Distribution Deal

TORONTO/NEW YORK, June 21: Peace Arch Entertainment Group is
further expanding its television activities, entering into a production and
distribution deal with RHI Entertainment Distribution (formerly Hallmark
Entertainment Distribution) for six new TV movies.

Under the terms of the agreement, Peace Arch will produce
and co-finance six new films with RHI and distribute the films in all media
throughout Canada and on DVD in the United States. RHI will handle the
distribution of all other rights throughout the world. The first of the
projects, Off Road, begins filming in
Winnipeg, Canada, in July.