September 12, 2008

Zed and Lionsgate Announce Mobile Partnership

SANTA MONICA, Calif. and MADRID, Spain, Sept. 12 /PRNewswire/ -- LIONSGATE , the leading next generation filmed entertainment studio, and Zed, the leading mobile content company worldwide in terms of revenue and geographical presence, today announced an agreement to co-develop mobile entertainment projects, based on Lionsgate films, television programming and music as well as original properties for mobile. The agreement will not only leverage Lionsgate content in the form of mobile video across Zed's global network of mobile operators, but will also create new revenue streams and creative opportunities through traditional ringtones, wallpaper and games as well as new forms of mobile video and mobile interactive communities.

Zed, the leading mobile value-added player worldwide, develops and markets entertainment and community products and services for mobile distribution through a network of 130 mobile operators, reaching more than 50 global territories and 2 billion mobile subscribers. The mobile marketplace is currently the fastest growing industry worldwide, outpacing that of landline phones, personal computers, television sets and cars, bringing in annualized wireless revenues of over $143 billion, according to CTIA research. Experian Consumer Research predicts that, by December 2010, 70 percent of consumers in our global society will carry at least one cellular device. Additionally, the growing range of multimedia handsets and faster connections have greatly increased creative avenues such as user-generated content, instant messaging, text messaging and image sharing.

"Consumers are clearly increasing penetration of the mobile market, and as two next-generation entertainment companies, we're excited to form our global partnership with Zed to create a powerful new industry model for mobile entertainment," said Curt Marvis, President, Digital Media of Lionsgate. "We look forward to bringing this fresh opportunity to consumers by the end of year, and this agreement continues our momentum in creating innovative new content deals to serve the digital marketplace worldwide."

Lionsgate manages a prolific library of approximately 12,000 motion picture and television titles, including its SAW horror franchise, film classic DIRTY DANCING, critically-acclaimed "Mad Men," iconic comedy "Weeds," and compelling television drama "Crash" based on Lionsgate's Academy Award-winning film. The Company also recently announced series "Paris Hilton's My New BFF" with the international star, and "Nurse Jackie" starring three-time Emmy Award-winner and former "The Sopranos" star Edie Falco. Together, Lionsgate and Zed will oversee financing, development, production, marketing and distribution.

"This agreement truly represents the 21st century model of Hollywood entertainment evolving to serve new global distribution markets. I am confident we will significantly increase the success of the two enterprises," said Javier Perez Dolset, Founder and CEO of Zed.

This agreement was negotiated on behalf of Lionsgate by Alex Barkaloff, Executive Producer, Mobile, and on behalf of Zed by Santiago Corredoira, Business Development Corporate Director.

About Lionsgate

Lionsgate is the leading next generation filmed entertainment studio with a major presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content. The Company is leveraging its content leadership and marketing expertise through a series of partnerships that include the operation of the highly successful FEARnet branded channel with Sony and Comcast, the recent announcement of the fall 2009 launch of a new multiplatform entertainment venture with partners Viacom, Paramount Pictures and MGM, investment in the leading young men's digital distribution platform, ownership of the premier independent television syndication company Debmar-Mercury LLC and an alliance with independent filmed entertainment production and distribution company Roadside Attractions.

The Company's feature films have generated more than $450 million at the North American theatrical box office in the past year and has also forged leadership positions in television and home entertainment with the production of such critically-acclaimed television series as "Weeds" and "Mad Men", the distribution of "Tyler Perry's House of Payne", "Family Feud", "South Park", "Trivial Pursuit,""The Wendy Williams Show" and Tyler Perry's "Meet the Browns," among others, and approximately 8% market share and the industry's leading box office-to-DVD conversion rate in home entertainment. Lionsgate handles a prestigious and prolific library of approximately 12,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company's core businesses. The Lionsgate brand is synonymous with entrepreneurial innovation and original, daring, quality entertainment in markets around the globe.

About Zed

Zed develops and markets entertainment and community products and services for mobile and the Internet. The company is the leading mobile value-added services (MVAS) player in the world in terms of revenue and geographical footprint. Zed operates in 53 countries, including Europe's largest markets, USA and China and holds agreements with 130 wireless operators all over the world.

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CONTACT: Kristin Robinson, Manager, Corporate Communications andInvestor Relations of Lionsgate, +1-310-255-5114, [email protected]; orMiguel Lopez-Quesada, General Manager, Corporate Communications andInstitutional Affairs, [email protected], or Ana Perez Marcos, MediaRelations Coordinator, +34 91 6404857, [email protected], both of ZedGroup

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