Lionsgate Records $53.1 Million Loss

SANTA MONICA, August 10: As a result of increased theatrical
marketing expenses, Lionsgate has delivered a first-quarter loss of $53.1
million versus last year’s loss of $3.6 million, despite a 15-percent increase
in revenues to $198.7 million.

The company said that the bulk of the loss could be
attributed to a $47 million increase in theatrical marketing expenses as a
result of an expanded motion picture slate.

"The first quarter reflects our usual frontloaded costs
and is in line with our expectations," said Lionsgate’s co-chairman and
CEO, Jon Feltheimer. "Although we are disappointed in the weakness of the
early part of our theatrical slate, this performance is offset by our diversification
and the over-performance of our other businesses as well as the recognition
that the strongest part of our slate is still ahead."

Motion picture revenue for the quarter was $170.3 million,
an increase of 3 percent. Home entertainment revenues were down 10 percent to
$103.8 million.

Television revenue included in the motion picture segment
was $22.4 million in the first quarter, a 51 percent increase thanks to several
strong theatrical titles with television windows opening in the period,
including Employee of the Month and Saw 3.

International revenue of $22.7 million increased 47 percent,
driven by strong foreign sales of Saw 3,
The Punisher, Right At
Your Door and the stage play Dirty
Dancing, which has sold out theatres in
Germany and the U.K. en route to North America.

Television production revenue of $28.4 million in the first
quarter increased 289 percent, driven by deliveries of The Dead Zone, Wildfire
and The Dresden Files; revenue
contributions from the television syndication subsidiary Debmar-Mercury; and
international television sales of the series Hidden Palms, Lovespring International, The Dead Zone and The Dresden Files.