SOURCE: Peace Arch Entertainment Group Inc.

January 10, 2008 15:14 ET

Peace Arch Entertainment Announces the Completion of the Acquisition of Dufferin Gate Productions Inc.

Company's Complete Purchase of Profitable Dufferin Gate Further Enhances Vertical Integration and Increases Production Capacity

TORONTO--(Marketwire - January 10, 2008) - Peace Arch Entertainment Group Inc. ("Peace Arch") (AMEX: PAE) (TSX: PAE), an innovative film and television entertainment company, announced today that it has completed the acquisition of the remaining 59.99% of the shares of Dufferin Gate Productions Inc. ("Dufferin Gate"). Peace Arch initially acquired 40.01% of Dufferin Gate in July, 2007. Under the terms of the deal, Peace Arch acquired all of the shares of Dufferin Gate for approximately CAD$5.4 million in cash plus CAD$600,000 in common shares of Peace Arch.

The acquisition is the latest validation of Peace Arch's high-growth business model focused on the acquisition of profitable assets in the entertainment industry to create a fully integrated entertainment company.

"Following our partial acquisition of Dufferin Gate in July 2007, we have continued to uncover additional synergies between our core distribution and sales operations and Dufferin Gate's production service capabilities that we expect will build additional value for our shareholders," said John Flock, President and Chief Operating Officer of Peace Arch Entertainment. "We believe our acquisition of Dufferin Gate, together with our purchase of Trinity Home Entertainment in July and our proposed acquisition of ContentFilm, has positioned Peace Arch to achieve rapid growth in 2008 and well beyond."

Incorporated in July 1994, Dufferin Gate Productions has furnished production services on more than 150 cable movies, television series and feature films for such studios as Showtime Networks, Paramount Pictures, Viacom Productions, Columbia/TriStar and Peace Arch, including such notable productions as the recent Showtime/Peace Arch collaboration "The Tudors."

About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature films, television and home entertainment content for distribution to worldwide markets. Peace Arch owns one of the largest libraries of top quality independent feature films in the world, featuring more than 1,000 classic and contemporary titles. Through its subsidiary, Peace Arch Home Entertainment, Peace Arch is also one of the leading distributors of DVDs and related products in Canada. For additional information, please visit www.peacearch.com.

For more investor-oriented information about Peace Arch Entertainment, visit http://www.trilogy-capital.com/tcp/peace-arch/. For current stock price quotes and news, visit http://www.trilogy-capital.com/tcp/peace-arch/quote.html. To view an Investor Fact Sheet, visit http://www.trilogy-capital.com/tcp/peace-arch/factsheet.html. To read a transcript of a recent Peace Arch investor conference call or listen to an archived recording, please visit http://www.trilogy-capital.com/tcp/peace-arch/conference.html.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The closing of the transaction is subject to the negotiation and execution of definitive documentation and the approval of the Toronto Stock Exchange and the American Stock Exchange.

FORWARD-LOOKING STATEMENT

This press release includes statements that may constitute forward-looking statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact Information

  • Contacts:
    Roy Bodner
    Senior Vice President
    Marketing and Communications
    Peace Arch Entertainment
    (310) 776-7208
    Email Contact

    Financial Communications
    Trilogy Capital Partners
    Ryon Harms
    (800) 592-6067
    Email Contact