SOURCE: Peace Arch Entertainment Group Inc.

January 28, 2008 19:30 ET

Peace Arch Entertainment Provides Update on Release of Financial Results for Fiscal 2007

TORONTO--(Marketwire - January 28, 2008) - Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), an integrated global entertainment company, today provided a status update with respect to the Company's filing of its financial statements for the year ended August 31, 2007 and its first quarter ending November 30, 2007.

After discussions with Peace Arch representatives, the Ontario Securities Commission ("OSC") has agreed that the current Management Cease Trade Order issued on December 24, 2007 will remain in place to allow Peace Arch additional time to complete the statements provided Peace Arch continues to comply with the alternative information guidelines of the OSC.

"Our filings have been delayed because we are integrating the financial results of three private companies we acquired during the fiscal year, our CEO was replaced shortly before the original filing deadline, and management has determined under applicable variable-interest entity accounting rules to consolidate the results of numerous privately held, single picture production companies from whom Peace Arch acquired distribution rights during the fiscal year," said Jeff Sagansky, Chief Executive Officer of Peace Arch Entertainment. "We are determined to ensure that the Company is in good financial standing, and we believe this additional time will allow us to finalize our year-end filing and enable Peace Arch to enter 2008 on a firm financial footing. We confirm once again that other than the release of our statements, there is no material information concerning the affairs of the Company that has not been generally disclosed as of the date of this announcement."

Peace Arch originally anticipated filing its annual statements during the week of December 9, 2007. Despite its best efforts, management subsequently determined that further time was required to prepare those filings and for its independent auditors to complete their audit. Based on the work done to date, management's best estimate at this time is that the annual audited financial statements will be filed by February 29, 2008. As a result of not filing its 2007 financial statements, Peace Arch also has not yet filed its financial statements for the first quarter ended November 30, 2007. First quarter results will be filed shortly after the Company files its annual statements.

This update is provided pursuant to the alternative information guidelines of the OSC. These guidelines require the Company to provide bi-weekly updates on its affairs until such time as the Company is current with its filing obligations under Canadian securities laws. Peace Arch intends to continue to comply with the alternative information guidelines of the OSC until such time as it becomes current with its filing obligations.

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, 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
    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