SOURCE: Peace Arch Entertainment Group Inc.

December 05, 2006 11:04 ET

Peace Arch® Entertainment Launches Strategic Joint Venture With CSC Global Technologies to Enter Multi-Billion Dollar Digital Film Distribution Industry

Joint Venture Enables Peace Arch to Deliver Film Library and Third Party Content Through Video-On-Demand and IP Television

TORONTO -- (MARKET WIRE) -- December 5, 2006 -- Peace Arch® Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), an innovative film and television entertainment company, announced today that it has signed a joint venture agreement with CSC Global Technologies Inc. to launch a digital film distribution subsidiary to capitalize on the fast-growing marketplace for delivery of film and television programming via the Internet and video-on-demand.

Peace Arch will employ CSC's state-of-the-art video and audio compression technologies and Digital Rights Management Software to digitally distribute its expanding library of film, television and other entertainment content.

Digital distribution technologies are an increasingly important component of the global entertainment industry. Consumer spending for digitally distributed entertainment content is expected to increase from $19 billion in 2005 to an estimated $67 billion in 2010, according to PricewaterhouseCoopers.

CSC is a world leader in video and audio compression with the ability to deliver high-definition television (HDTV) signals over a DSL or high speed Internet cable connection. The CSC technology provides completely scalable piracy security and territory access controls to both wired and wireless devices.

Gary Howsam, Chief Executive Officer of Peace Arch Entertainment, said, "Innovations in digital technology are revolutionizing the entertainment industry, none more so than the shift towards the delivery of on-demand content and the Internet marketplace. Given the advanced capabilities and functionality of CSC's technology and our own ability to source highly sought after content like our current Sundance invitees 'Chapter 27' and 'Delirious,' our event television series 'The Tudors' and our pending acquisition of the 500+ title Castle Hill/Dream library, we believe that this agreement provides an ideal and safe platform for the worldwide distribution of our expanding catalogue of film and television programming as well as content from other independent suppliers."

The agreement with CSC kicks off Peace Arch's plan to work with strategic partners to build a vertically integrated digital business to distribute independent film content worldwide, and to offer content and technology support to other digital program providers. Peace Arch expects to begin business-to-business online services in the near future to support the Company's current sales initiatives.

"We have worked with Peace Arch for more than six months to bring this project to fruition," said Garry Saundh, President and Chief Executive Officer of CSC. "They are exactly the right kind of partner for this venture. They are aggressive and knowledgeable about the industry and are always looking to expand their horizons."

Among the more than 20 feature film, television and DVD productions that Peace Arch Entertainment produced or acquired over the past twelve months are "Chapter 27," starring Jared Leto and Lindsay Lohan, the San Sebastian Film Festival prize-winning "Delirious," starring Steve Buscemi, Michael Pitt, and Alison Lohman; the ten-hour event television series "The Tudors," starring Jonathan Rhys Meyers and Sam Neill and the romantic comedy "Watching The Detectives" starring Cillian Murphy and Lucy Liu.

About CSC Global Technologies Inc.

CSC Global Technologies Inc. is Canadian company that has developed secure enabling technologies that tangibly improve the viability of delivery of streaming and downloaded video content to consumers via Internet portals. We have proven the operability and performance of our technology with our own proprietary proof-of-concept Internet portals and through extensive due diligence by several major players in the Entertainment industry. Our technology is commercialized and has been adopted by major corporations. We have developed the ability to deliver video on wired or wireless connections including wired dial-up, cable, DSL and wireless 1-X and EVDO. We can deliver files either by download or streaming in a wide range of quality from PDA, VHS, TV, DVD to High Definition and Theatrical release.

For more information about CSC Global Technologies Inc. you can visit our Web site: www.cscglobaltech.com or contact: Rodger Campbell, Vice President Business Development at rcampbell@cscglobaltech.com

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 Home Entertainment is one of the leading distributors of DVDs and related products in Canada. Peace Arch recently entered into an agreement to acquire Castle Hill Productions and Dream LLC, whose library of more than 500 classic, contemporary and genre films is expected to supplement Peace Arch's own annual output of more than two dozen new feature films and long form television programs. 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.

Forward-Looking Statements

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

  • Contact:
    Roy Bodner
    Vice President Public Relations
    Peace Arch Entertainment
    (310) 450-1711
    Email Contact