Peace Arch Entertainment Group Inc.
TSX : PAE
AMEX : PAE

Peace Arch Entertainment Group Inc.

August 29, 2005 06:36 ET

Peace Arch Entertainment Group Inc. Announces Results of Special Meeting of Holders of Common Shares

TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) - Peace Arch Entertainment Group Inc. (TSX:PAE)(AMEX:PAE) today announced the results of its Special Meeting of Holders of Common Shares, held August 24, 2005.

At the Meeting, the shareholders approved the previously announced resolutions presented to the Meeting by management.

In particular, the shareholders approved the amendment to the Corporation's share capital by the creation of preference shares issuable in series. Among other things, this fulfills the requirement of the Corporation to deliver voting preference shares to Messrs. Drew Craig, Kerry McCluggage, Jeff Sagansky, and Michael Taylor pursuant to the Corporation's previously announced private placement of preference shares and warrants to those individuals.

The shareholders also approved the reduction of the stated capital account for the Corporation's common shares by up to CDN$29,706,623. This reduction will be applied to reduce the Corporation's accumulated deficit under Canadian accounting principles. However, this reduction will not affect the Corporation's financial statements under US accounting principles.

Further information on the special resolutions approved at the Meeting is available in the Company's Sedar and SEC filings, available at www.sedar.com and www.sec.gov, respectively.

Peace Arch Entertainment Group Inc. (www.peacearch.com), one of Canada's foremost entertainment companies, creates, develops, produces and distributes proprietary feature film and television programming for worldwide markets. Peace Arch Entertainment Group Inc. and its subsidiaries have offices in Toronto, Vancouver, Los Angeles and London, England.

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 the release.

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