Lions Gate Entertainment Corp. to Raise Between US$125 Million and US$150 Million in Gross Proceeds Through the Private Placement of Convertible Senior Subordinated Notes

Lions Gate Entertainment Corp. (NYSE: LGF) Toronto ("Lions Gate") today announced that it has agreed to privately place US$125,000,000 aggregate principal amount of 2.9375% convertible senior subordinated notes due 2024 of its subsidiary Lions Gate Entertainment Inc. The offering will include up to US$25,000,000 additional aggregate principal amount of notes if the Initial Purchasers exercise their option to purchase additional notes. Lions Gate is guaranteeing the notes.

The notes are convertible into Lions Gate's common shares at a conversion ratio of 86.9565 shares per $1,000 principal amount of notes or US $11.50 per share and contain certain redemption and repurchase rights. The closing is expected to occur October 4, 2004. The net proceeds from the offering will be used for repayment of outstanding indebtedness under Lions Gate's existing U.S. dollar revolving credit facility and term loan, and may also be used for other general corporate purposes, which may include the financing of a portion of any future acquisitions.

Neither the convertible notes nor the shares issuable upon conversion have been registered under the Securities Act of 1933, as amended, or any state securities laws or qualified under any Canadian securities laws and, until so registered or qualified as applicable, may not be offered or sold in the United States or any state or Canada absent registration or an applicable exemption from registration and prospectus requirements as applicable. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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This press release contains "forward-looking statements" within the meaning of the federal securities law. The forward-looking statements in this press release involve risks and uncertainties that could cause actual results to differ from those expressed in or implied by the statements herein. The potential risks and uncertainties include risk factors set forth in Lions Gate's public filings with the Securities and Exchange Commission. Lions Gate undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

   For further information, contact:
   Peter D. Wilkes

SOURCE: Lions Gate Entertainment Corp.

CONTACT: Peter D. Wilkes of Lions Gate Entertainment Corp.,

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