Peace Arch CEO Placed on Administrative Leave

TORONTO, November 6: Jeff Sagansky has been appointed as the
interim CEO of the Canadian production-and-distribution company Peace Arch
Entertainment Group, with Gary Howsam being placed on administrative leave.

The company reports that Howsam was arrested yesterday as
part of a U.S. federal investigation into some of his dealings with Comerica
Bank before he joined Peace Arch in 2003. “The Board has emphasized that Peace
Arch is not a party to the investigation and that these activities occurred in
a time period preceding Mr. Howsam's involvement with the company.”

Sagansky, currently co-chairman of Peace Arch, is a former
CEO of CBS Entertainment, co-president of Sony Pictures Entertainment,
president of TriStar Pictures and senior VP of programming at NBC. John Flock,
who is currently serving as president and COO, based in Los Angeles, will
operate in an expanded capacity, working directly with Sagansky.

"While the Board of Directors is hopeful that Mr.
Howsam will be able to clear his name in due course, it is business as usual at
Peace Arch," said Sagansky. "We have made significant advances over
the last several quarters and we are highly optimistic about the future of this
great company."

—By Mansha Daswani