Profit Drops at Lionsgate

SANTA MONICA/VANCOUVER, February 12: Third quarter profit at
Lionsgate fell to $2 million from the $20.5 million recorded in the same period
last year, on revenues that were 14 percent higher, at $290.9 million,
reflecting its best revenue performance ever for a fiscal third quarter.

"Our theatrical, television, home entertainment,
library, international and digital businesses all achieved continued solid
performance in the quarter," said Lionsgate’s co-chairman and CEO, Jon
Feltheimer. "With an anticipated record-breaking revenue and free cash
flow quarter ending March 31, we are on track to meet our full year
guidance."

Overall motion picture revenue for the quarter was $254.1
million, led by Saw IV and Tyler
Perry's Why Did I Get Married?
Home-entertainment revenue was $105.1 million, thanks to sales of Bratz, Skinwalkers and Captivity and
continued sales of Delta Farce, Saw
III and The Condemned. Television revenue included in the motion picture
segment was $28.9 million, led by titles such as Crash, Daddy's Little Girls, Happily N'Ever After and Pride.

Lionsgate also had the strongest international revenue
quarter in its history, reporting $53.8 million in revenue, with $22.4 million
coming from Lionsgate U.K.

Television production revenue was $36.8 million in the third
quarter, driven by deliveries of episodes of Mad Men, Weeds
and Wildfire, and U.S. series
licensing of Tyler Perry's House of Payne, South Park and Family
Feud from the its Debmar-Mercury
syndication arm.

—By Mansha Daswani