Peace Arch Concludes Acquisition of Dufferin Gate Productions

TORONTO, January 11: Peace
Arch Entertainment Group has completed the acquisition of the remaining 59.99
percent of the shares of Dufferin Gate Productions.

Peace Arch had initially
acquired 40.01 percent of Dufferin Gate in July 2007. Under the terms of the
deal, Peace Arch acquired all of the shares of Dufferin Gate for approximately
C$5.4 million in cash plus C$600,000 in common shares of Peace Arch.

This most recent
transaction is part of Peace Arch’s high-growth business model, which is
focused on the acquisition of profitable assets to create a fully integrated
entertainment company.

Dufferin Gate Productions
has furnished production services on more than 150 cable movies, television
series and feature films for such studios as Showtime Networks, Paramount
Pictures, Viacom Productions, Columbia/TriStar and Peace Arch, including the
recent Showtime/Peace Arch collaboration The Tudors.

“Following our partial
acquisition of Dufferin Gate in July 2007, we have continued to uncover
additional synergies between our core distribution and sales operations and
Dufferin Gate’s production service capabilities that we expect will build
additional value for our shareholders,” said John Flock, the president and COO
of Peace Arch Entertainment. “We believe our acquisition of Dufferin Gate,
together with our purchase of Trinity Home Entertainment in July and our
proposed acquisition of ContentFilm, has positioned Peace Arch to achieve rapid
growth in 2008 and well beyond.”

—By Irene Lew