Icahn Affiliates confirm control over 16.87% of the common shares of Lions Gate Entertainment Corp.



    NEW YORK, June 17 /CNW/ - High River Limited Partnership, Hopper
Investments LLC, Barberry Corp., Icahn Offshore LP, Icahn Partners LP, Icahn
Onshore LP, Icahn Capital LP, IPH GP LLC, Icahn Enterprises Holdings L.P.,
Icahn Enterprises G.P. Inc., Beckton Corp., Icahn Partners Master Fund LP,
Icahn Partners Master Fund II LP, Icahn Partners Master Fund III LP and Carl
C. Icahn (collectively, the "Icahn Affiliates") announced today that they have
filed an early warning report with the Canadian securities regulatory
authorities confirming their acquisition (the "Acquisition") of beneficial
ownership and control of 1,000,000 common shares (the "Acquired Shares") of
Lions Gate Entertainment Corp. ("Lions Gate") representing approximately 0.85%
of the issued and outstanding common shares of Lions Gate (based upon the
117,032,091 common shares stated to be outstanding as of May 22, 2009 by Lions
Gate in Lions Gate's Form 10-K filed with the Securities and Exchange
Commission on June 1, 2009). The Acquired Shares were purchased on the New
York Stock Exchange at a price of US$5.2600 (Cdn.$5.9811 based on the noon
rate quoted by the Bank of Canada of US$1.00 = Cdn.$1.1371) per common share.
    After giving effect to the acquisition, the Icahn Affiliates may be
deemed to beneficially own and control 19,752,312 common shares of Lions Gate
(including approximately 130,382 common shares that may be acquired by the
Icahn Affiliates upon conversion of the US$1,154,000 in aggregate principal
amount of 2.9375% Convertible Senior Subordinated Notes due 2024 (the "2024
Notes") and the US$429,000 in aggregate principal amount of 3.625% Convertible
Senior Subordinated Notes due 2025 (the "2025 Notes") of Lions Gate
Entertainment Inc. owned by the Icahn Affiliates) representing in the
aggregate approximately 16.87% of the outstanding common shares of Lions Gate
(based upon the sum of: (i) 117,032,091 common shares stated to be outstanding
as of May 22, 2009 by Lions Gate in Lions Gate's Form 10-K filed with the
Securities and Exchange Commission on June 1, 2009 plus (ii) approximately
30,035 common shares issuable upon conversion of the 2025 Notes owned by the
Icahn Affiliates).
    The indenture governing the 2024 Notes states that such notes are
convertible, at the option of the holder, into 86.9565 common shares of Lions
Gate per US$1,000 principal amount of 2024 Notes, which is equivalent to a
conversion price of approximately US$11.50 per common share, only if certain
events specified in the indenture governing such 2024 Notes occur. The
indenture governing the 2025 Notes states that such notes are convertible, at
the option of the holder, into 70.0133 common shares of Lions Gate per
US$1,000 principal amount of 2025 Notes, which is equivalent to a conversion
price of approximately US$14.28 per common share, at any time. Although (i)
the conversion of the 2024 Notes is subject to the occurrence of events
specified in the indenture governing such notes and (ii) the conversion prices
of both the 2024 Notes and the 2025 Notes as stated in the applicable
indentures are in excess of the current market value of the common shares of
Lions Gate, pursuant to the provisions of the Securities Act (Ontario), the
Icahn Affiliates may be deemed to beneficially own approximately 130,382
common shares of Lions Gate that may be acquired by the Icahn Affiliates upon
conversion of the 2024 Notes and the 2025 Notes held by the Icahn Affiliates.
    The Icahn Affiliates acquired the Acquired Shares in the belief that the
common shares of Lions Gate were undervalued. Representatives of the Icahn
Affiliates have had discussions with the Chief Executive Officer and Vice
Chairman of Lions Gate and intend from time to time to seek to continue to
have discussions with representatives of Lions Gate. The Icahn Affiliates may,
from time to time and at any time, acquire additional common shares of Lion's
Gate and/or its subsidiaries and/or other equity, debt or other securities or
instruments (collectively, "Securities") of Lions Gate and/or its subsidiaries
in the open market or otherwise and reserve the right to dispose of any or all
of their Securities in the open market or otherwise, at any time and from time
to time, and to engage in any hedging or similar transactions with respect to
the Securities. The Icahn Affiliates may seek to add nominees designated by
the Icahn Affiliates to Lions Gate's board of directors, which could include
expanding the size of the board of directors of Lions Gate and/or removing
individuals from the board of directors of Lions Gate. The Icahn Affiliates
may take any such action at Lions Gate's next annual meeting of shareholders
or at a special meeting which the Icahn Affiliates may call.
    Information regarding Icahn Affiliates' control over common shares of
Lions Gate has previously been made available by the Icahn Affiliates via
their Schedule 13D filings with the United States Securities and Exchange
Commission (publicly available on the EDGAR database).





For further information:

For further information: Susan Gordon, (212) 702-4309

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LIONS GATE ENTERTAINMENT CORP.

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