SOURCE: Peace Arch Entertainment Group Inc.

June 23, 2006 06:30 ET

Peace Arch Entertainment Signs Exclusive Distribution Agreement With FusionActive Films

New Alliance to Further Exploit Burgeoning Segments of Global Film, and Digital Entertainment Marketplace

TORONTO -- (MARKET WIRE) -- June 23, 2006 -- Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE), a rapidly emerging, vertically integrated film and television company, and Los Angeles-based independent film company, FusionActive Films and Music, have entered into a development and distribution agreement to create a diverse slate of feature films, television programming and digital content to further capitalize on several burgeoning segments of the global film and entertainment marketplace.

Under the agreement, Peace Arch is acquiring development and distribution rights to a slate of film titles in development under the FusionActive label.

"FusionActive is developing a number of film and television projects which attracted us as Peace Arch further positions itself for long-term revenue growth and global market visibility," said Mr. Flock. "This alliance with FusionActive marks our continued commitment to support expansion and appreciation at Peace Arch through the multimedia deployment of an array of compelling titles in targeted film, television and DVD markets."

The first title slated for release under the partnership is FusionActive's documentary, "Mr. Mayor," which chronicles the life of Alfonso J. Cervantes, the popular and controversial Mayor of St. Louis, Missouri during the turbulent 1960s and 1970s. "Mr. Mayor" is slated for release this fall on national television. The film has already garnered strong advance praise from critics and some of the country's highest-profile political leaders.

Also in the pipeline for Peace Arch's future release is FusionActive's feature film thriller, currently untitled, which is a murder mystery about ambition, danger and revenge set against a backdrop of Los Angeles' underground nightlife. This film is currently slated to start production in late fall 2006.

During the last several months, Peace Arch has successfully positioned it as high growth vertically integrated independent film and television studio that finances, produces, acquires, markets and distributes its own projects and those of third party producers. The Peace Arch Investor Fact Sheet can be viewed or downloaded free of charge by visiting

About FusionActive Films and Music LLC

FusionActive is an emerging independent film producer based in Los Angeles, focusing on high concept, music-driven feature films. In addition, the company also develops an array of television productions for cable and DVD distribution.

About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment is a vertically integrated media company that produces, finances, acquires and distributes feature film and television programs 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. Peace Arch recently entered into an agreement with Castle Hill Productions and Dream LLC to acquire their library of more than 500 classic, contemporary and genre films, which is expected to supplement Peace Arch's own annual output of more than two dozen new feature films and long form television programs. For investor-specific information about Peace Arch Entertainment, including recent news and stock price data, please visit For additional information, 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.

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