CanWest, Goldman Sachs to Acquire Alliance Atlantis

TORONTO, January 10: CanWest Global Communications Corp. and
GS Capital Partners, a private equity affiliate of Goldman, Sachs & Co., today
announced a deal to acquire Alliance Atlantis Communications for C$2.3 billion
($1.96 billion). CBS will take over international distribution of the CSI franchise as part of the arrangement.

Alliance Atlantis said early today that it was in exclusive
discussions with CanWest and Goldman Sachs, after announcing plans to put
itself on the auction block in late December.

CanWest and GS Capital Partners have formed an acquisition
company to execute the deal. The newly formed acquisition company is an
indirect wholly owned subsidiary of CanWest. The transaction is pending Class A
voting and Class B non-voting shareholder approval, expected to happen in the
spring. Shareholders representing approximately 80 percent of the Class A
voting shares have agreed to vote in favor of the deal, which is also awaiting
regulatory approval.

Upon receipt of CRTC approval, Alliance Atlantis' specialty television
business and CanWest's Canadian television business will eventually be combined. Alliance
Atlantis' Motion Picture Distribution business
will be controlled by a Canadian partner of GS Capital Partners. GS Capital Partners will own 100 percent of Alliance Atlantis' financial interest in the CSI franchise. As part of this new relationship with
Goldman Sachs, CBS will assume international
distribution of CSI, CSI:
Miami and CSI: NY.

"Today's transaction is consistent with CanWest's
strategy to enhance its existing television business and expand its presence in
the fast growing specialty television sector," said Leonard Asper, the president
and CEO of CanWest. "The combined expertise of CanWest and Alliance
Atlantis will enable us to produce even better Canadian content, promote it
more effectively, and provide greater access to more viewers across more
platforms. We are thrilled to be working with Goldman Sachs to effect this
strategic transaction."

Michael MacMillan, the executive chairman of Alliance
Atlantis and the company’s majority shareholder through Southhill Strategy with
Atlantis Films founder Seaton McLean, said the CanWest deal “represents great
value for our shareholders. The combination of CanWest's conventional and
specialty television businesses and Alliance Atlantis' 13 specialty television
channels creates an excellent foundation for future growth in both
businesses."