Lionsgate and Element Pact on Three-Year, Nine-Picture Deal

LionsGate:: Lionsgate and Element Pact on Three-Year, Nine-Picture Deal
Deal Builds Lionsgate Pipeline, Calls for Element to Independently Develop,
Finance and Produce Three Features a Year for Lionsgate Wide Release

SANTA MONICA, Calif., and VANCOUVER, British Columbia, March 23
/PRNewswire-FirstCall/ -- Lionsgate (NYSE: LGF; Toronto), the leading
independent filmed entertainment studio, and Sam Nazarian's Los Angeles-based
Element Films have signed a three-year pact calling for Element to develop,
self-finance and produce three motion pictures a year for wide release by
Lionsgate, it was jointly announced by Nazarian and Peter Block, Lionsgate
President of Acquisitions and Co-Productions.
The pact expands Lionsgate's pipeline of 18-20 theatrical releases a year
by adding a reliable flow of product for wide release with minimal financial
risk while providing Element with a long-term distribution partner and an
unusually high level of creative autonomy. Element will select six of the
nine pictures in the pact. Each film will be produced by Element President
Adam Rosenfelt, who is Nazarian's producing partner and oversees all Element
productions. Element Films International, headed by John Fremes, will handle
foreign sales of each of the nine films covered under the agreement.
Lionsgate and Element have already teamed on the teen comedy WAITING, which
generated $16 million at the domestic box office and has shipped more than
2.5 million units on DVD for Lionsgate, and the upcoming contemporary thriller
FIVE FINGERS.
"We work very well with Lionsgate and are excited to be in business with
them in this new and expansive way," said Nazarian. "Their track record of
two back-to-back years with more than $300 million at the domestic box office
and three number one box office hits in the past four months speaks for
itself. They are tireless marketers and demonstrate a tremendous enthusiasm
and creativity, not to mention results, in their efforts. We couldn't be
happier."
"This deal is consistent with our motion picture strategy of organically
growing our slate in a cost-effective way," said Block. "We've enjoyed our
previous collaborations with Sam and Adam, and we are enthusiastic about
teaming up with Element on films which are sure to be as provocative and
innovative as their previous projects have been."
The deal was negotiated for Element by Marc Schaberg, Element's Chief
Operating Officer, and Randy Winograd, SBE Entertainment Group's Chief
Financial Officer, and for Lionsgate by Block and Lionsgate General Counsel
and EVP Corporate Operations Wayne Levin.
Element and Lionsgate have previously collaborated on two motion pictures,
both financed and produced by Element for distribution by Lionsgate. WAITING
a ribald teen comedy staring Ryan Reynolds, was released by Lionsgate last
October. The film was produced for under $3 million and earned more than
$16 million at the box office. The second film is FIVE FINGERS, a
contemporary thriller starring Laurence Fishburne and Ryan Phillippe, to be
released by Lionsgate in the fall of 2006.
The first film to be produced by Element under the new agreement is from
the Lionsgate development slate. THE PROM, a romantic teen comedy, will mark
John Chu's feature film directorial debut. The film will start principal
photography in New Orleans in early June with cast to be announced soon. Mike
Paseornek, Lionsgate President of Productions, and Nazarian will executive
produce. Element Films International will introduce THE PROM to international
buyers during the upcoming Cannes Film Festival.
Element has previously developed, financed and produced six motion
pictures, including DOWN IN THE VALLEY starring Ed Norton, Evan Rachel Wood,
Bruce Dern and David Morse; WAITING starring Ryan Reynolds, Anna Faris, Justin
Long, and Luis Guzman; FRESHMAN ORIENTATION, starring John Goodman; EVIL
REMAINS starring Estella Warren, Ashley Scott and Daniel Gilles; FIVE FINGERS;
and THE LAST TIME, a comedic-drama currently in post production, starring
Michael Keaton and Brendon Fraser.
Sam Nazarian is a producer, real estate financier, hotelier and
restaurateur. He co-founded Element with Adam Rosenfelt in 2003.
Rosenfelt previously produced the independent films THE THIRD WHEEL, a
romantic comedy starring Luke Wilson and Ben Affleck, distributed by Miramax;
and AMERICAN GIRL, a comedy starring Jena Malone and Alicia Witt, for MGM.

Element Films, a subsidiary of SBE Entertainment Group, is committed to
financing and producing motion pictures in the $10-20 million dollar range for
theatrical distribution. Element also strategically partners with other
production entities and studios on select motion pictures. Element is also
the principal partner in LA Squared, the Louisiana-based film fund. The fund
is a combination of private equity, public financing, bank debt and Louisiana
state tax credits. The partners are Element's CEO Sam Nazarian, HIS
Entertainment's Stavros Merjos, Element President Adam Rosenfelt, and Malcolm
Petal of The Louisiana Institute of Technology, founded by Petal. Louisiana's
venture arm, the Louisiana Economic Development Corporation, is also involved
in the production equity fund.

THE PROM joins an upcoming Lionsgate slate that includes Trent Cooper's
LARRY THE CABLE GUY: HEALTH INSPECTOR (March 24), the inspirational AKEELAH
AND THE BEE, starring Laurence Fishburne, Angela Bassett and Keke Palmer
(April 28), the provocative Sundance sensation HARD CANDY (April 14),
Lionsgate's first entry in the Spanish-language feature film marketplace, LA
MUJER DE MI HERMANO, starring telenovela sensation Barbara Mori (April 14) and
the horror film See No Evil, starring WWE superstar Kane (May 19).

Lionsgate is the leading independent filmed entertainment studio. It is a
premier producer and distributor of motion pictures, television programming,
home entertainment, family entertainment and video-on-demand content. Its
prestigious and prolific library is a valuable source of recurring revenue and
a foundation for the growth of the Company's core businesses. The Lionsgate
brand is synonymous with original, daring, quality entertainment in markets
around the globe.

http://www.lionsgate.com