Peace Arch Delivers Revenue, Profit Gains

TORONTO, July 16: Peace Arch Entertainment Group has
recorded third-quarter revenues of C$20 million, more than double the C$8.8
million reported in the same period last year, drawing a profit of C$1.9
million, versus Q3 2006’s loss of C$400,000.

For the nine months ended May 31, 2007, meanwhile, revenues
were up 285.3 percent to C$51.6 million, with a profit of C$4.2 million, as
compared with the loss of C$1.9 million the previous year.

Gary Howsam, the CEO of Peace Arch Entertainment, commented:
"Our third quarter results reflect our commitment to the company’s growth
and profit strategy. The company has established new benchmarks in revenue and
earnings for this quarter and year-to-date through accretive acquisitions and a
strong focus on distribution and sales. With a strong, veteran management team
in place and high quality programming in our pipeline, we expect Peace Arch to
continue to build on this momentum for the remainder of 2007 and beyond.”