SOURCE: Peace Arch Entertainment Group Inc.

March 06, 2008 02:00 ET

Peace Arch Entertainment Announces Update on Letter of Intent With ContentFilm plc

Company Reviews Strategic Alternatives Following Termination of Exclusive Negotiations

TORONTO--(Marketwire - March 6, 2008) - Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE) ("Peace Arch"), an integrated global entertainment company, announced today that due to current market conditions, Peace Arch has agreed to terminate its exclusive period of negotiation with ContentFilm plc (AIM: CFL) ("ContentFilm").

"ContentFilm is an innovative entertainment company with an attractive business model and a strong management team, but given both the turmoil in the credit markets and market conditions in general we have decided not to make an offer to purchase the company," said Jeff Sagansky, CEO of Peace Arch. "Peace Arch will continue to explore strategic acquisitions that can have a big impact on our ongoing mission of building library and distribution assets that create value for our shareholders. We thank the management of ContentFilm for their efforts during this period and we look forward to pursuing other opportunities with them in the near future."

As was previously announced, the Letter of Intent to make an offer for ContentFilm was non-binding (except for the provisions relating to exclusivity and confidentiality) and was subject to various conditions, including negotiation and execution of definitive financing agreements, formal offer conditions, completion of due diligence by both parties and approval by the Board of Directors of each entity.

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. 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, that the corresponding restatement of the Company's financial statements may change based upon the Audit Committee's ongoing analysis, that the Company's ability to file required reports timely with the Securities and Exchange Commission will be impaired, that potential claims or proceedings may arise relating to such matters, that the Audit Committee in consultation with the Company's independent public accounting firm will determine that the proper accounting differs from the accounting treatment upon which the assumptions and forward looking statements in this release are based 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
    Senior Vice President
    Marketing and Communications
    Peace Arch Entertainment
    (310) 776-7208
    Email Contact: Email Contact

    Or

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