Lionsgate, Xenon Ink Distribution Agreement

SANTA MONICA/VANCOUVER,
March 27: Lionsgate has secured an exclusive multi-year agreement to distribute
more than 300 DVD titles from Spanish-language outfit Xenon Pictures and the
labels it operates in the U.S., including Televisa Home Entertainment.

Xenon will continue to
produce, acquire and market its products, with Lionsgate providing the sales
and replenishment aspects. This new agreement replaces Xenon’s previous deal
with Universal Music’s Vivendi Visual Entertainment division, which will still
retain 44 titles until January 1, 2009.

"We have been very
impressed with Lionsgate's thoughtful and thorough approach to the
home-entertainment space in recent years, as well as with the professionalism
of their sales force," said Leigh Savidge, the founder, president and CEO
of Xenon Pictures. "They truly understand what it is that we do, and their
marketing and distribution prowess makes Lionsgate an ideal fit for our
product."

"Xenon is an exciting
addition to our growing library of Spanish-language titles," said Steve
Beeks, Lionsgate’s president and co-COO. "The Xenon library builds upon a
Spanish-language foundation established with our acquisition of other libraries
and formation of other distribution agreements with a strong Spanish-language
component. The partnership with Xenon extends both our Spanish-language and
urban lines of business, two very important growth markets for Lionsgate."

—By Kristin
Brzoznowski