Record Revenues for Lionsgate

SANTA MONICA/VANCOUVER, June 2: Fiscal 2008 revenues at
independent studio Lionsgate rose to a record $1.36 billion from $976.7
million, reflecting a 39-percent increase.

Despite the full-year revenue gain, however, the studio
posted a $74 million loss versus last yearÕs profit of $27.5 million, primarily
as a result of increased theatrical distribution and marketing expenses in
association with the planned growth of the company's motion-picture slate. For
the fourth quarter, revenues were $511.5 million, marking its best quarterly
revenue performance.

"Every division of the company made contributions to
our tremendous revenue growth, and they have positioned us for continued
double-digit revenue growth in fiscal 2009," said Jon Feltheimer, LionsgateÕs co-chairman
and CEO. "We continue to leverage our vast array of content for large
niche audiences into a fast-growing channel business, digital distribution
platforms and emerging international opportunities that, in addition to the
continued successful operation of our existing core businesses, all set the
foundation for long-term profitability and enhanced global recognition of the
Lionsgate brand."

Overall motion-picture revenue for the year was a record
$1.15 billion, an increase of 34.1 percent from fiscal 2007. Within the
motion-picture segment, theatrical revenue was $191.7 million, an increase of
78 percent. Home-entertainment revenue was a record $623.5 million in the
fiscal year, an 18-percent increase. And catalogue revenues were $263.7 million.
Television revenue included in the motion-picture segment was $115.9 million in
the fiscal year, a 6-percent increase, led by titles such as Crank, Daddy's Little Girls, Employee of The Month, Saw III and The Descent. Lionsgate also had the strongest international revenue performance in
its history, reporting $158.7 million in international revenue. Lionsgate U.K.
contributed $64.6 million in revenue in the fiscal year.

Television production revenue was $210.1 million, a
77-percent increase, led by deliveries of episodes of in-house productions such
as Mad Men (AMC), Weeds (Showtime), Wildfire (ABC Family) and the Dead Zone (USA Network), and domestic series licensing of Tyler
Perry's House of Payne, South Park and Family
Feud from Debmar-Mercury.

—By Mansha Daswani