SOURCE: Peace Arch Entertainment Group Inc.

February 02, 2007 16:40 ET

Peace Arch Entertainment Executes Licensing Agreement With Genius Products to Distribute 'Animal 2' in Lucrative U.S. Market

Film Capitalizes on Success of Original Production and Validates the Company's High-Growth, High-Margin Business Model

TORONTO -- (MARKET WIRE) -- February 2, 2007 -- Peace Arch® Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), an innovative film and television entertainment company, announced today that it has licensed the Company's feature film "Animal 2" to Genius Products, one of the leading home entertainment distributors in the United States. The agreement increases to 10 the number of titles that Genius will distribute for Peace Arch in the U.S. home entertainment market. Genius also acquired all other U.S. distribution rights to the picture, including digital.

Peace Arch recently announced the production launch of "Animal 2," a sequel to the sleeper hit "Animal," which grossed more than $8 million in US DVD revenues in 2005. Golden Globe® Award-winning actor Ving Rhames ("Pulp Fiction," "Dawn of The Dead") reprises his role as the title character in the feature urban drama that recently completed filming in Canada.

"Animal 2," is being directed by Ryan Combs from a script by Jacob Adams and is produced by Lewin Webb, Kate Harrison, Wayne Thompson and David Mitchell. Peace Arch's Gary Howsam, Michael Taylor and Barbara Sacks are the executive producers together with Jacqueline Kelly. Peace Arch holds worldwide distribution rights.

"Peace Arch and Genius have formed a mutually beneficial relationship that we believe will continue to grow as we continue to capitalize on the lucrative U.S. market," said John Flock, President of Peace Arch Entertainment. "'Animal 2' has the type of top notch script and experienced film-making team that allows us and our partners to ensure a solid return on investment."

In "Animal 2," Rhames portrays an imprisoned James Allen, AKA Animal, who is determined to quietly serve his time -- but he cannot escape his violent past. When his enemies reach beyond the prison walls by framing Animal's son for murder and then leveraging blackmail and corruption in the court system, Animal is reluctantly forced to resume his position of gang leadership in order to protect his family.

Under an agreement entered into in May 2006, Peace Arch engaged Genius as its U.S. home entertainment distributor for a slate of five pictures from its Archetype Films division, which specializes in the horror, science fiction and action genres. The agreement has now been extended twice, adding additional titles including "Bottom Feeder" and "The Mad." The first picture in the package, "The Last Sect" starring David Carradine, was released by Genius on DVD on September 12, 2006.

About Genius Products

Genius Products, Inc. (OTCBB: GNPI), along with The Weinstein Company, jointly own Genius Products, LLC, a leading independent home entertainment distribution company that produces, licenses, and distributes a valuable library of motion pictures, television programming, family, lifestyle and trend entertainment on DVD and other emerging platforms through its expansive network of retailers throughout the U.S. Genius handles the distribution, marketing and sales for such brands as Asia Extreme™, Baby Genius®, Dragon Dynasty™, Dimension Films®, ESPN®, IFC®, NBC News®, Sundance Channel Home Entertainment®, Wellspring™ and The Weinstein Company®. Genius Products, Inc. is the managing member of Genius Products, LLC, in which it holds a 30% equity interest.

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 is the owner of one of the largest libraries of top quality independent feature films in the world. 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

For more investor-oriented information about Peace Arch Entertainment, visit For current stock price quotes and news, visit To view an Investor Fact Sheet, visit To read a transcript of a recent Peace Arch investor conference call or listen to an archived recording, please visit

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

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    Roy Bodner
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    Peace Arch Entertainment
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