Alliance Atlantis Reports Q4 Loss

TORONTO, March 6: Alliance Atlantis has posted a net loss
for the fourth quarter of C$16.6 million—versus last year’s C$24.8
million profit—while for the full year profit fell from C$70.9 million to
C$48.6 million.

Fourth quarter revenue, however, rose 12 percent to C$327.3
million, while full-year revenues were up 13 percent to $1.2 billion, driven
both by its broadcasting business and the continued sales on the CSI franchise.

"We are extremely pleased with the company's overall performance
in 2006," said Phyllis Yaffe, the CEO of Alliance Atlantis. "Our
broadcasting business continues to grow and we are particularly satisfied with
the increased contribution from our eight digital channels. Subsequent to
year-end, we entered into new carriage agreements for our digital channels and
we expect to add more than 5 million incremental subscribers across all of our
digital channels. Our analog and digital channels will now have an aggregate in
excess of 45 million subscribers. The CSI franchise
also continued its exceptional performance, fuelled by strong international
second window sales."

Broadcasting revenues in the quarter rose 5 percent to C$88
million, and in the year they were up 6 percent to $301.2 million. Gains were
recorded for both subscriber and advertising revenues.

In the entertainment segment, Q4 revenues were up 20
percent. Much of that was due to CSI, whose revenues were up C$16.7 million.
For the year, entertainment revenues rose 34 percent to C$458 million, again
thanks to CSI, which contributed revenues of C$128.3 million, helping to offset
lower sales of the company’s library titles.

Alliance Atlantis is in the process of being sold to CanWest
Global and Goldman Sachs Capital Partners.