Optimum Releasing, Lionsgate U.K. Jointly Acquire Elevation Sales

CANNES/SANTA MONICA, May
18: StudioCanal-owned Optimum Releasing and Lionsgate U.K. have formed a joint
venture to acquire U.K.-based DVD distributor Elevation Sales.

The acquisition will
become operational in September, and the company will retain the name Elevation
Sales and its current management team. The parties have executed letters of
understanding and are now negotiating the definitive agreements. Elevation will
now handle the joint sales and distribution of DVD product for both Optimum
Home Entertainment and Lionsgate U.K., continuing its growth within the U.K.
home entertainment market. Elevation Sales’ forthcoming DVD roster includes
mainstream releases such as Saw IV and
Captivity, critically acclaimed
successes like This is England and
The Lives of Others and the
classic catalogue releases Dirty Dancing and This is Spinal Tap.

As part of the venture,
Elevation will capitalize on opportunities for distribution of third-party
product in addition to Lionsgate and Optimum releases. The companies also
expect Elevation to continue diversifying its DVD product portfolio into such
areas as TV-to-DVD releases. Founded by Graham Davidson in January 2004,
Elevation has already sold more than 15 million DVDs in the U.K. for Optimum,
Buena Vista Home Entertainment and MVM, among others.

Davidson, the managing
director of Elevation Sales, commented: "I am delighted that Elevation
will be at the heart of this new venture between Optimum and Lionsgate. In
recent years both companies have become key players in the DVD industry across
both new release and back catalogue titles. The team and I are very excited
about bringing their combined product release slate to the market, alongside
releases from our existing and valued clients Buena Vista Home Entertainment
and MVM."