Lionsgate Announces New Five-Year $340 Million Revolving Credit Facility With JPMorgan And Wachovia



    SANTA MONICA, Calif. and VANCOUVER, British Columbia, July 28
/PRNewswire- FirstCall/ -- Lionsgate (NYSE:   LGF), the leading next generation
filmed entertainment studio, has finalized arrangements for a new five-year,
$340 million revolving credit facility that helps position the Company for
continued future growth, it was announced today by Lionsgate Vice Chairman
Michael Burns.  The new facility, agented by JPMorgan in conjunction with
Wachovia Bank, can be increased to as much as $500 million and replaces the
previous $215 million credit facility, also with JPMorgan.
    "This new facility is another component of Lionsgate's strong balance
sheet, a key driver of our growth in the future," said Burns. "With $371
million in cash and cash equivalents at the end of fiscal 2008, no corporate
bank debt, long-term sub debt locked in at approximately 3.31% and this new
facility, we are well positioned to take advantage of potential strategic
opportunities that may arise, consistent with our business plan."
    "It is a testament to Lionsgate's senior management team, business plan,
financial strength and track record of growth and success that this facility
closed so quickly in the current market environment," said Christa Thomas,
Managing Director of JPMorgan.  "The facility was actually oversubscribed as
participating banks saw Lionsgate's unique vision for monetizing their content
leadership."
    Lionsgate has continued to build its strong balance sheet at the same
time that it has invested more than $150 million in growing its business over
the past three years with the acquisition of Redbus Film Distributors in the
U.K. (now Lionsgate UK), the Debmar-Mercury television syndication company,
independent filmed entertainment studio Mandate Pictures, a 42% investment in
leading young men's online site Break.com, a 43% investment in independent
producer and distributor Roadside Attractions and the launch of the FEARNet
branded horror channel with partners Sony and Comcast.
    The new facility was orchestrated for Lionsgate by Burns, Chief Financial
Officer Jim Keegan and EVP Business and Legal Affairs James Gladstone.  Morgan
Lewis & Bockius served as outside counsel for JPMorgan and Jim Russell of
Heenan Blaikie was outside counsel for Lionsgate on the deal.
    
    ABOUT LIONSGATE
    
    Lionsgate is the leading next generation filmed entertainment studio with
a major presence in the production and distribution of motion pictures,
television programming, home entertainment, family entertainment,
video-on-demand and digitally delivered content. The Company is leveraging its
content leadership and marketing expertise through a series of partnerships
that include the highly successful FEARNet branded VOD and Internet horror
channel with Sony and Comcast, the recent announcement of the fall 2009 launch
of a new premium entertainment channel with partners Viacom, Paramount
Pictures and MGM, investment in the leading young men's digital distribution
platform Break.com, ownership of the premier independent television
syndication company Debmar-Mercury LLC and an alliance with independent filmed
entertainment production and distribution company Roadside Attractions.
Lionsgate also has forged partnerships with leading content creators, owners
and distributors in key territories around the world, including Televisa in
the U.S. and Latin America, StudioCanal in the UK, Hoyts and Sony in Australia
and Eros International in India.
    The Company has generated more than $450 million at the North American
theatrical box office in the past year and has released a string of hits
including THE FORBIDDEN KINGDOM, Tyler Perry's MEET THE BROWNS, THE BANK JOB,
RAMBO, THE EYE, SAW IV, Tyler Perry's WHY DID I GET MARRIED?, GOOD LUCK CHUCK,
3:10 TO YUMA and WAR, most of which have opened at #1 or #2 at the box office.
The Company has also forged leadership positions in television and home
entertainment with the production of such critically-acclaimed television
series as WEEDS and MAD MEN, the distribution of Tyler Perry's HOUSE OF PAYNE,
FAMILY FEUD, SOUTH PARK, TRIVIAL PURSUIT and THE DEAD ZONE, among others, and
approximately 8% market share and the industry's leading box office-to-DVD
conversion rate in home entertainment. Lionsgate handles a prestigious and
prolific library of approximately 12,000 motion picture and television titles
that is an important source of recurring revenue and serves as the foundation
for the growth of the Company's core businesses. The Lionsgate brand is
synonymous with entrepreneurial innovation and original, daring, quality
entertainment in markets around the globe.

    
                           http://www.lionsgate.com
    

    
     For further information, please contact:
    

    
     Peter D. Wilkes
     Lionsgate
     310-255-3726
     pwilkes@lionsgate.com
    

    
     Kristin Robinson
     Lionsgate
     310-255-5114
     krobinson@lionsgate.com

    




For further information:

For further information: Peter D. Wilkes, +1-310-255-3726,
pwilkes@lionsgate.com, or Kristin Robinson, +1-310-255-5114,
krobinson@lionsgate.com, both of Lionsgate Web Site: http://www.lionsgate.com


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