SOURCE: Peace Arch Entertainment Group Inc.

May 05, 2006 06:30 ET

kaBOOM! Entertainment Inc. Announces a Banner Year of Sales and Profits

New Peace Arch Home Entertainment Division Reports Best-Ever Gross Sales for 12 Months Ended April 30

TORONTO -- (MARKET WIRE) -- May 5, 2006 -- kaBOOM! Entertainment Inc., a subsidiary of Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE.LV), announced it has delivered its best-ever year, reporting unaudited sales of CAN$25.6 million, and Normalized EBITDA of approximately CAN$2.5 million, for the 12 months ended April 30, 2006.

In January, 2006, Peace Arch acquired kaBOOM! Entertainment, one of Canada's leading home entertainment companies, and retained kaBOOM! President Berry Meyerowitz to head the Peace Arch Home Entertainment division. Accordingly Peace Arch consolidates the financial results of kaBOOM! as of January 23, 2006 forward.

"The team at kaBOOM! has built the Company into one of the best independent home entertainment and DVD distribution labels in Canada, and their newest financials reflect their talent and hard work," said Gary Howsam, CEO of Peace Arch. "I am not surprised that their revenues and performance exceeded our expectations. I want to personally congratulate Berry for his success, and for creating an operation that we believe will anchor an increasingly important part of Peace Arch's own revenue growth and expansion in the home entertainment distribution marketplace."

kaBOOM! built its success in the Canadian marketplace through distribution of family-oriented DVDs and related products. It handles products from leading entertainment industry companies such as Maple Pictures/Lionsgate, Nelvana, and Sesame Workshop. It will now carry Peace Arch DVD product as well.

"We are proud of our performance in the marketplace this year, and are excited to have joined the Peace Arch team," said Mr. Meyerowitz. "With the additional resources at Peace Arch, I am confident that we can build an even stronger home entertainment division."

About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature film and television programs for distribution to worldwide markets. Its Peace Arch Films division markets and licenses theatrical films oriented towards the major international film festivals such as Cannes, Venice and Toronto. The Company's Archetype Film label focuses on projects in the horror, thriller and action genres. Peace Arch Television specializes in the licensing of the Company's own productions and third-party projects to Canadian and international broadcasters, cable and satellite companies. Peace Arch Home Entertainment, under the kaBOOM! Entertainment Inc. banner, is one of the leading distributors of DVDs and related products in Canada.

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

  • Contacts:
    Berry Meyerowitz
    kaBOOM! Entertainment Inc.
    416-783-8383 ext. 242
    Email Contact

    Peace Arch Entertainment Group Inc.
    Nicole Spracklin
    416-487-0377 ext. 237
    Email Contact