Movie Distribution Income Fund Unitholders Approve Acquisition of its 49% Interest in Motion Picture Distribution LP by EdgeStone Capital Partners



    TORONTO, Aug. 3 /CNW/ - Movie Distribution Income Fund (the "Fund") (TSX:
FLM.UN) today announced that at the special meeting of the Fund's unitholders
held earlier today, unitholders of the Fund overwhelmingly adopted a special
resolution approving the sale of the Fund's 49% indirect interest in Motion
Picture Distribution LP ("MPDLP") to an acquisition company, established by
EdgeStone Capital Partners (the "Sale Transaction"), all as more fully
described in the management information circular of the Fund dated July 6,
2007. Over 99.9% of the votes cast at the special meeting were voted in favour
of the special resolution approving the Sale Transaction. A report of final
voting results for the special meeting will be available at
    Assuming closing of the Sale Transaction occurs on August 15th, it is
expected that the units will be delisted from trading on the TSX at the close
of the markets on August 16th and the units will be redeemed on August 17th
for $10 per unit plus a proportionate distribution of distributable cash for
the period from August 1st through to but excluding August 15th of $0.047 per
unit. Following the redemption, it is intended that the Fund will cease to be
a reporting issuer and will be wound-up.
    "We are pleased to have been able to deliver such a favourable liquidity
alternative to our unitholders," said Rubin Osten, Chair of the Fund's Special
Committee. "On behalf of the Fund's Board of Trustees, I would also like to
thank our management, employees and business partners for their continued
support throughout this process."

    About Motion Picture Distribution LP and Movie Distribution Income Fund

    Motion Picture Distribution LP is a leading distributor of motion
pictures in Canada, with a presence in motion picture distribution operations
in the United Kingdom and Spain. MPDLP distributes filmed entertainment to
theatres, on video and DVD, and to television broadcasters. Alliance Atlantis
Communications Inc. (TSX: AAC.A, AAC.B) currently indirectly holds a 51%
ownership interest in MPDLP and Movie Distribution Income Fund (TSX: FLM.UN)
indirectly holds the remaining ownership interest in MPDLP.

    Forward-looking statements:

    This press release includes forward-looking statements, which are based
on certain assumptions and reflect the current expectations of Movie
Distribution Income Fund (the "Fund") and MPDLP. Forward-looking statements
are those which are not historical fact and include, but are not limited to,
statements of the Fund's or MPDLP's expectations and intentions. The reader
should not place undue reliance on them. They involve known and unknown risks,
uncertainties and other factors that may cause them to differ materially from
the anticipated future results or expectations expressed or implied by such
forward-looking statements, including among other things whether the Sale
Transaction will be completed, whether on the terms currently contemplated or
otherwise. Important factors that could cause actual results to differ
materially from those set forth in the forward-looking statements include: a
change of control of Alliance Atlantis, audience acceptance of our filmed
entertainment, our relationship with filmed entertainment content suppliers;
the loss of key personnel, technological change that increases competition or
facilitates the infringement of our intellectual property, changes to the
regulatory environment, actions of our competitors and changes in the general
economy. Additional information about these factors and other factors are
described in materials filed by the Fund with the security regulatory
authorities in Canada from time to time, including the Fund's and MPDLP's
Management's Discussion and Analysis ("MD&A") for the year ended December 31,
2006 and for the period ended March 31, 2007, as well as the Fund's management
information circular dated July 6, 2007. Neither the Fund nor MPDLP undertakes
any obligation to publicly update or revise any forward-looking statements or
information, whether as a result of new information, future events or

    (*) "Alliance Atlantis" with the stylized "A" design is licensed from
    Alliance Atlantis Communications Inc., an indirect limited partner of
    Motion Picture Distribution LP, not a general partner.

For further information:

For further information: Lloyd A. Wiggins, Chief Financial Officer,
Movie Distribution Income Fund, Tel: (416) 966-7266,

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