Lionsgate Inks $400-Million Filmed Entertainment Financing Deal

SANTA MONICA/VANCOUVER/MONTREAL, August 1: Lionsgate has
secured a four-year, $400 million filmed entertainment slate financing
agreement with Societe generale de financement du Quebec (SGF), the provincial
government’s investment arm, for the production of television series and
feature films in Quebec.

Under the terms of the agreement, SGF, which has a $2
billion investment portfolio, will finance up to 35 percent of the budgeted
production costs of television and feature film productions from Lionsgate shot
in Quebec for a four-year period. SGF will contribute an investment of up to
$140 million. The agreement will encompass a broad range of future Lionsgate
television and feature film productions in the province of Quebec, including
the planned October production of Lionsgate's next Punisher film, starring Ray Stevenson.

The agreement is part of SGF’s continued efforts to promote
production of foreign films and television series in Quebec. The announcement
follows Lionsgate's formation in May of a $400 million, 23-picture theatrical
slate financing agreement led by Goldman Sachs & Co., JP Morgan Chase and
Jefferies & Co. as well as SGF's investment in the $212.5 million financing
of Joel Silver's Dark Castle slate in
2006.

"We are delighted to partner with SGF in the financing
of our growth," said Lionsgate co-chairman and CEO Jon Feltheimer.
"This transaction reflects our commitment to form innovative and
cost-effective alliances to continue expanding our television and motion
picture production."

Added Raymond Bachand, the minister of economic development,
innovation and export trade: "This investment will be highly beneficial
for Quebec's filmed entertainment industry. Foreign productions are vital for
the growth of this sector and for the continued development of the industry's
workforce in Quebec."