Lionsgate Reports Revenues of $218.2 Million for Second Quarter of Fiscal Compares to Pretax Loss of $14.6 Million in Prior Year Quarter

Lionsgate (NYSE: LGF), the leading independent filmed entertainment studio, reported revenues of $218.2 million, free cash flow of $24.1 million and a pretax loss of $15.3 million for its fiscal 2007 second quarter ended September 30, 2006, the Company announced today.

Lionsgate reported a basic loss per common share of $0.14 on 104.9 million weighted average common shares outstanding compared to a basic loss per common share of $0.14 on 102.4 million weighted average common shares outstanding in the prior year quarter.

"Our core businesses continue to perform strongly and we remain well positioned for a very successful fiscal 2007 in line with our expectations," said Lionsgate Chief Executive Officer Jon Feltheimer. "Our recent acquisition of the television syndication company Debmar-Mercury, the launch of our FEARNet branded horror channel, our addition of important new family entertainment franchises, strong international results and the consistent performance of our theatrical box office franchises all underscore our continued steady growth."

The Company noted that its filmed entertainment backlog increased to $248.7 million in the second quarter, its highest level ever, reflecting future revenue not yet recorded from contracts.

Lionsgate also had total cash and auction rate notes of more than $200 million at the end of the second quarter and subsequently announced the redemption of $60.0 million of 4 7/8% senior subordinated notes, which will reduce interest expense by $2.9 million annually and leave the Company's remaining subordinated debt fixed at a long-term blended rate of 3.31%.

Theatrical revenue of $20.5 million during the second quarter increased 9% compared to $18.8 million in the prior year quarter, driven primarily by the box office successes THE DESCENT and CRANK. Lionsgate's EMPLOYEE OF THE MONTH and box office hit SAW III were both released after the close of the second quarter, although much of the theatrical marketing cost of EMPLOYEE OF THE MONTH was included in the second quarter due to its October 6 release date. Lionsgate has now achieved four consecutive wide release theatrical box office successes.

Lionsgate's home video revenue of $115.1 million decreased 4% compared to $119.9 million with few major theatrical drivers on DVD in the quarter. Significant titles included AKEELAH AND THE BEE, ULTIMATE AVENGERS 2, along with continuing sales of Tyler Perry's MADEA'S FAMILY REUNION (released June 27) and the Tyler Perry catalog titles MADEA GOES TO JAIL and WHY DID I GET MARRIED.

International revenue of $17.1 million in the second quarter increased 73% compared to $9.9 million in the prior year's quarter, including a $6.1 million contribution from Lionsgate U.K., which released THE WICKER MAN and RIGHT AT YOUR DOOR theatrically and AN AMERICAN HAUNTING and A COCK AND BULL STORY on DVD. Additional international revenue was generated by SAW II, CRANK, UNDISCOVERED, THE LOST CITY, HARD CANDY and the stage play DIRTY DANCING, currently showing in the UK and Germany.

Television revenue included in the motion picture segment was $33.4 million in the second quarter, an 82% increase compared to $18.4 million in the prior year's quarter. The gain was attributable to several strong theatrical titles with television windows opening in the second quarter, including SAW II, LORD OF WAR, WAITING and IN THE MIX.

Television production revenue of $31.6 million in the quarter decreased 26% compared to $42.7 million in the prior year's quarter, due primarily to lower international television revenue and lower domestic licensing revenue because the majority of the Company's current television production of 12 prime time series is backloaded. Domestic deliveries in the quarter included DIRTY DANCING: THE REALITY SERIES for WE, season 2 of WEEDS for Showtime, LOVESPRING for Lifetime and I PITY THE FOOL for TV Land. Such new series as HIDDEN PALMS for CW, DRESDEN FILES and LOST ROOM for Sci-Fi, WHITE BOYZ N THE HOOD for Showtime, MAD MEN for AMC and KILL PIT for SPIKE, as well as the third season of WILDFIRE for ABC Family, are all slated for delivery in future quarters. WILDFIRE has already been picked up for a fourth season by ABC Family.

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2007 second quarter financial results at 9:00 A.M. ET/6:00 A.M. PT, Friday, November 10, 2006. Interested parties may participate live in the conference call by calling 1-888-276-0007 (1-612-332-0637 outside the U.S. and Canada). A full digital replay will be available from Friday, November 10, through Friday, November 17, by dialing 1-800-475-6701 (1-320-365-3844 outside the U.S. and Canada) and using access code 845301.

Lionsgate is the leading independent filmed entertainment studio, winning this year's 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 more than 10,000 titles 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.

www.lionsgate.com

For further information, contact:

<<

Peter D. Wilkes

Lionsgate

310-255-3726

pwilkes@lionsgate.com

>>

The matters discussed in this press release include forward-looking statements, including those regarding the timing of our upcoming film slate, the expansion of our television business, the success of our fiscal 2007, and the timing of revenues expected from our upcoming television series. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including the substantial investment of capital required to produce and market films and television series, increased costs for producing and marketing feature films, budget overruns, limitations imposed by our credit facilities, unpredictability of the commercial success of our motion pictures and television programming, the cost of defending our intellectual property, difficulties in integrating acquired businesses, technological changes and other trends affecting the entertainment industry, and the risk factors as set forth in Lionsgate's Form 10-K filed with the Securities and Exchange Commission on June 14, 2006. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

This press release, and the accompanying tables, include both financial measures in accordance with accounting principles generally accepted in the United States of America, or GAAP, as well as non-GAAP financial measures. The tables attached to this press release include reconciliations of non-GAAP financial measures to GAAP financial measures.

LIONS GATE ENTERTAINMENT CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

<<

September 30, March 31,

2006 2006

(Unaudited)

(Amounts in thousands,

except share amounts)

ASSETS

Cash and cash equivalents $52,762 $46,978

Restricted cash 2,544 820

Investments - auction rate securities 146,749 167,081

Investments - equity securities 14,040 14,921

Accounts receivable, net of reserve for

video returns and allowances of $67,197

(March 31, 2006 - $73,366) and provision

for doubtful accounts of $10,248

(March 31, 2006 - $10,934) 94,291 182,659

Investment in films and television programs 515,236 417,750

Property and equipment 9,942 7,218

Goodwill 196,665 185,117

Other assets 23,271 30,705

$1,055,500 $1,053,249

LIABILITIES

Accounts payable and accrued liabilities $159,396 $188,793

Unpresented bank drafts -- 14,772

Film obligations 320,895 284,987

Subordinated notes 385,000 385,000

Deferred revenue 53,230 30,427

918,521 903,979

Commitments and contingencies

SHAREHOLDERS' EQUITY

Common shares, no par value,

500,000,000 shares authorized,

105,416,841 at September 30, 2006 and

104,422,765 at March 31, 2006 shares issued

and outstanding 334,836 328,771

Series B preferred shares (10 shares issued

and outstanding) -- --

Restricted share units -- 5,178

Unearned compensation -- (4,032)

Accumulated deficit (195,126) (177,130)

Accumulated other comprehensive loss (2,731) (3,517)

136,979 149,270

$1,055,500 $1,053,249

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Three Months Six Months Six Months

Ended Ended Ended Ended

September 30, September 30, September 30, September 30,

2006 2005 2006 2005

(Amounts in thousands, except per share amounts)

Revenues $218,169 $210,978 $390,625 $403,818

Expenses:

Direct

operating 94,723 108,479 163,268 208,224

Distribution

and marketing 113,345 97,688 200,391 191,169

General and

administration 21,727 15,074 40,960 32,342

Depreciation 581 387 1,125 932

Total

expenses 230,376 221,628 405,744 432,667

Operating Loss (12,207) (10,650) (15,119) (28,849)

Other Expense

(Income):

Interest expense 4,904 4,632 9,580 9,256

Interest rate

swaps

mark-to-market -- 104 -- 123

Interest income (2,286) (851) (4,847) (1,916)

Total other

expenses 2,618 3,885 4,733 7,463

Loss Before Equity

Interests and

Income Taxes (14,825) (14,535) (19,852) (36,312)

Equity interests (435) (54) (377) (54)

Loss Before

Income Taxes (15,260) (14,589) (20,229) (36,366)

Income tax

provision

(benefit) (868) 391 (2,233) 461

Loss before

discontinued

operations (14,392) (14,980) (17,996) (36,827)

Income from

discontinued

operations,

net of tax

of nil -- 874 -- 902

Net loss $(14,392) $(14,106) $(17,996) $(35,925)

Basic and Diluted

Loss Per Common

Share From

Continuing

Operations $(0.14) $(0.15) $(0.17) $(0.36)

Basic and Diluted

Earnings Per

Common Share From

Discontinued

Operations -- 0.01 -- 0.01

Basic and Diluted

Net Loss per

Common Share $(0.14) $(0.14) $(0.17) $(0.35)

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

Series B Restricted

Common Shares Preferred Shares Share

Number Amount Number Amount Units

(Amounts in thousands, except share amounts)

Balance at

March 31, 2005 101,843,708 $305,662 10 $-- $--

Exercise of

stock options 361,310 1,408

Issuance to

directors for

services 20,408 203

Impact of

previously

modified

stock options -- 27

Issuance of

common shares in

connection with

acquisition of

film assets 399,042 3,775

Issuance of

common shares in

connection with

acquisition of

common shares of

Image Entertainment 1,104,004 11,537

Issuance of

common shares in

connection with

acquisition of

Redbus 643,460 5,643

Issuance of

restricted share

units 5,694

Amortization of

restricted share

units

Vesting of restricted

share units 50,833 516 (516)

Comprehensive income

(loss)

Net income

Foreign currency

translation

adjustments

Net unrealized

loss on foreign

exchange contracts

Unrealized loss on

investments --

available

for sale

Comprehensive

income

Balance at

March 31, 2006 104,422,765 328,771 10 -- 5,178

Reclassification

of unearned

compensation

and restricted

share common units

upon adoption of

SFAS No. 123(R) 1,146 (5,178)

Exercise of

stock options 897,388 2,429

Vesting of

restricted

share units 77,084

Issuance to

directors for

services 19,604 179

Stock based

compensation 2,311

Comprehensive loss

Net loss

Foreign currency

translation

adjustments

Net unrealized loss

on foreign exchange

contracts

Unrealized loss on

investments --

available for sale

Comprehensive loss

Balance at

September 30,

2006 105,416,841 $334,836 10 $-- --

Accumulated

Comprehensive Other

Unearned Accumulated Income Comprehensive

Compensation Deficit (Loss) Loss Total

(Amounts in thousands, except share amounts)

Balance at

March 31, 2005 $-- $(183,226) $(5,297) $117,139

Exercise of

stock options 1,408

Issuance to

directors for

services 203

Impact of

previously

modified

stock options 27

Issuance of

common shares

in connection

with acquisition

of film assets 3,775

Issuance of

common shares

in connection

with acquisition

of common shares

of Image

Entertainment 11,537

Issuance of

common shares

in connection

with acquisition

of Redbus 5,643

Issuance of

restricted

share units (5,694) --

Amortization of

restricted

share units 1,662 1,662

Vesting of

restricted

share units --

Comprehensive

income (loss)

Net income 6,096 $6,096 6,096

Foreign

currency

translation

adjustments 2,223 2,223 2,223

Net unrealized

loss on

foreign

exchange

contracts (356) (356) (356)

Unrealized

loss on

investments --

available

for sale (87) (87) (87)

Comprehensive

income $7,876

Balance at

March 31,

2006 (4,032) (177,130) (3,517) 149,270

Reclassification

of unearned

compensation

and restricted

share common

units upon

adoption of

SFAS No. 123(R) 4,032 --

Exercise of

stock options 2,429

Vesting of

restricted

share units --

Issuance to

directors for

services 179

Stock based

compensation 2,311

Comprehensive

loss

Net loss (17,996) $(17,996) (17,996)

Foreign

currency

translation

adjustments 1,680 1,680 1,680

Net unrealized

loss on

foreign

exchange

contracts (14) (14) (14)

Unrealized

loss on

investments

-- available

for sale (880) (880) (880)

Comprehensive

loss $(17,210) --

Balance at

September 30,

2006 $-- $(195,126) $(2,731) $136,979

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Six Months

Ended Ended

September 30, September 30,

2006 2005

(Amounts in thousands)

Operating Activities:

Net loss $(17,996) $(35,925)

Income from discontinued operations -- 902

Loss from continuing operations (17,996) (36,827)

Adjustments to reconcile net loss to

net cash provided by operating activities

Depreciation of property and equipment 1,125 932

Amortization of deferred financing costs 1,957 1,849

Amortization of films and television programs 81,998 134,409

Amortization of intangible assets 488 1,240

Non-cash stock-based compensation 2,490 836

Interest rate swaps mark-to-market -- 123

Equity interests 377 54

Changes in operating assets and liabilities:

Restricted cash (1,724) 1,916

Accounts receivable, net 99,804 14,817

Increase in investment in films and

television programs (164,071) (157,411)

Other assets 5,543 (2,764)

Accounts payable and accrued liabilities (34,039) 20,786

Unpresented bank drafts (14,772) --

Film obligations 27,286 76,632

Deferred revenue 22,316 (19,992)

Net Cash Flows Provided By Operating Activities

- continuing operations 10,782 36,600

Net Cash Flows Provided By Operating Activities

- discontinued operations -- 1,128

Net Cash Flows Provided By Operating Activities 10,782 37,728

Investing Activities:

Purchases of investments - auction rate

securities (296,043) (137,827)

Purchases of investments - equity securities -- (3,470)

Sales of investments - auction rate securities 316,375 47,500

Cash received from sale of investment -- 2,945

Acquisition of Debmar, net of cash acquired (24,112) --

Purchases of property and equipment (3,537) (2,157)

Net Cash Flows Used In Investing Activities

- continuing operations (7,317) (93,009)

Net Cash Flows Provided By Investing Activities

- discontinued operations -- 65

Net Cash Flows Used In Investing Activities (7,317) (92,944)

Financing Activities:

Issuance of common shares 2,429 681

Financing Fees -- (260)

Repayment of subordinated notes -- (5,000)

Net Cash Flows Provided By (Used In)

Financing Activities - continuing operations 2,429 (4,579)

Net Cash Flows Used In Financing Activities

- discontinued operations -- (2,211)

Net Cash Flows Provided By (Used In)

Financing Activities 2,429 (6,790)

Net Change In Cash And Cash Equivalents 5,894 (62,006)

Foreign Exchange Effects on Cash (110) 514

Cash and Cash Equivalents - Beginning Of Period 46,978 112,839

Cash and Cash Equivalents - End Of Period $52,762 $51,347

LIONS GATE ENTERTAINMENT CORP.

RECONCILIATION OF NET CASH FLOWS PROVIDED BY

OPERATING ACTIVITIES TO FREE CASH FLOW

Three Months Ended Six Months Ended

September 30, September 30,

2006 2005 2006 2005

(Amounts in thousands)

Net Cash Flows Provided By

Operating Activities $25,806 $7,561 $10,782 $37,728

Purchases of property and

equipment (1,706) (1,463) (3,537) (2,092)

Decrease in Unpresented

Bank Drafts -- -- 14,772 --

Free Cash Flow as defined $24,100 $6,098 $22,017 $35,636

>>

Free cash flow is defined as net cash flows provided by or used in operating activities less purchases of property and equipment and unpresented bank drafts. Unpresented bank drafts represent checks issued and not yet presented for payment in excess of the cash balances at custodial banks. The applicable bank accounts are funded at the time the checks are presented for payment.

Free cash flow is a non-GAAP financial measure as defined in Regulation G promulgated by the Securities and Exchange Commission. This non-GAAP financial measure is in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with Generally Accepted Accounting Principles.

Management believes this non-GAAP measure provides useful information to investors regarding cash that our operating businesses generate before taking into account cash movements that are non-operational. Free cash flow is a non-GAAP financial measure commonly used in the entertainment industry and by financial analysts and others who follow the industry. Not all companies calculate free cash flow in the same manner and the measure as presented may not be comparable to similarly titled measures presented by other companies.

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