SANTA MONICA, Calif. and VANCOUVER, BC, Nov. 9 /PRNewswire-FirstCall/ — Lionsgate (NYSE: LGF), the leading independent filmed entertainment studio, reported record high quarterly revenues of $343.5 million and a net loss of $56.2 million for its fiscal quarter ended September 30, 2007, the Company announced today. The Company noted that revenue growth was driven by strong theatrical box office results and television production revenue gains in the quarter.

Lionsgate reported basic and diluted net loss per common share of $0.47 on 119.2 million weighted average common shares outstanding. The Company noted that its loss in the quarter was driven by $122.5 million in theatrical marketing spend expensed in the quarter. “This was a very strong quarter for all of our businesses, most notably our theatrical business, whose positive contributions will be more fully reflected in future quarters,” said Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer. “We were pleased not only with our strong performance at the North American box office, but with our robust library and home entertainment revenues and continued momentum in our television production and international businesses as well. Our record revenues for the quarter show that we’re doing exactly what we should be doing as a growth company.”

The Company’s filmed entertainment backlog of $315.8 million exceeded $300 million for the fifth consecutive quarter.

Overall motion picture revenue for the quarter was $234.4 million. Within this segment, theatrical revenue was $42.4 million. Lionsgate had three consecutive significant theatrical releases in the quarter with War, 3:10 To Yuma and Good Luck, Chuck. The Company’s successful releases continued with Tyler Perry’s Why Did I Get Married? and Saw 4 after the close of the quarter.

Lionsgate’s home entertainment revenue was $122.3 million in the second quarter as several Lionsgate releases, including The Condemned and Delta Farce, significantly overindexed their theatrical box office performance. Other significant DVD releases in the quarter included Bug, continuing sales of Pride, Bratz Kidz: Sleepover Adventure and Dr. Strange, the fourth release in Lionsgate’s direct-to-video partnership with Marvel.

Television revenue included in the motion picture segment was $37.3 million in the second quarter, primarily attributable to several strong theatrical titles with television windows opening recently, including Tyler Perry’s Diary of A Mad Black Woman, Crank, Saw 3 and Employee of The Month.

International revenue was $31.1 million in the second quarter, driven by strong foreign sales and overages of Saw 3, Saw 2 and War as well as strong revenue performances by the Company’s motion pictures and third-party product distributed by Lionsgate U.K., including 3:10 To Yuma, Saw 3, Academy Award(R) Best Foreign Language winner The Lives of Others and The Hamiltons.

Television production revenue was $109.1 million in the second quarter, driven by deliveries of episodes of the sixth broadcast season of The Dead Zone (USA), the fourth season of Wildfire (ABC Family), the third season of Weeds (Showtime), the first season of Mad Men (AMC) and domestic series licensing of Tyler Perry’s House of Payne, South Park and other television programming from the Company’s wholly-owned television syndication subsidiary Debmar-Mercury LLC.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2008 second quarter financial results at 9:00 A.M. ET/6:00 A.M. PT, Monday, November 12, 2007. Interested parties may participate live in the conference call by calling 1-800-230-1059 (1-612-234-9959 outside the U.S. and Canada). A full digital replay will be available from Monday afternoon, November 12, through Monday, November 19, by dialing 1-800-475-6701 (1-320-365-3844 outside the U.S. and Canada) and using access code 891844.

Lionsgate is the leading independent filmed entertainment studio, winning the 2006 Best Picture Academy Award(R) for Crash, and the Company 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 of nearly 12,000 motion picture titles and television episodes 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