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Monday, July 30, 2007


Jul. 30, 2007 (M2 Communications Ltd. delivered by Newstex) --

Toronto, Ontario CANADA /FSC/ - Peace Arch Entertainment Group Inc. (PAE - American, PAE - TSX), an innovative film and television entertainment company, announced today that it has completed the acquisition of the Toronto based production company Dufferin Gate Productions Inc. for CAD$6 million. Under the terms of the deal, Peace Arch acquires all of the shares of Dufferin Gate for approximately CAD$5.4 million in cash and CAD$600,000 of Peace Arch common stock. The acquisition is the latest validation of Peace Arch's high-growth business model focused on the acquisition of profitable assets in the entertainment industry to create a fully integrated entertainment company.

Incorporated in July, 1994, Dufferin Gate Productions has furnished production services on more than 150 cable movies, television series and feature films for such studios as Showtime Networks, Paramount Pictures, Viacom Productions, Columbia/TriStar and Peace Arch, including such notable productions as the recent Showtime/Peace Arch collaboration 'The Tudors.'

The privately-held company owns property and a 72,000 square foot building in Toronto's West End, with state-of-the-art production and post-production facilities. The company had unaudited normalized EBITDA of approximately CAD$1 million for the year ending December 31, 2006.

Peace Arch will immediately acquire 40.01% of the shares and 50% of the votes of Dufferin Gate. Peace Arch has escrowed funds to secure a put granted to the remaining shareholder, which upon exercise will provide for Peace Arch to acquire all of the remaining shares and votes.

'Peace Arch is very please to announce the completion of this truly milestone acquisition for Peace Arch as it continues to create a successful vertically integrated entertainment company,' said Gary Howsam, Chief Executive Officer of Peace Arch Entertainment. 'Dufferin's exemplary management, longstanding industry relationships and incomparable expertise in all aspects of the Canadian production industry, gives Peace Arch a unique opportunity to expand our already robust production operations and provide more content to our rapidly growing distribution and sales divisions.'

John Weber, President and Chief Executive Officer of Dufferin Gate, will remain President of Dufferin Gate, which will be renamed Peace Arch Studios, and he will continue to oversee its day-to-day operations. He also joins Peace Arch as Executive Vice President of Production. He will report to Lewin Webb, President of Peace Arch's production division.

About Peace Arch(r) Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature films, television and home entertainment content for distribution to worldwide markets. Peace Arch owns one of the largest libraries of top quality independent feature films in the world, featuring more than 500 classic and contemporary titles. Through its subsidiary, Peace Arch Home Entertainment, Peace Arch is also one of the leading distributors of DVDs and related products in Canada. For additional information, please visit www.peacearch.com.

For more investor-oriented information about Peace Arch Entertainment, visit  http://www.trilogy-capital.com/tcp/peace-arch/. For current stock price quotes and news, visit  http://www.trilogy-capital.com/tcp/peace-arch/quote.html. To view an Investor Fact Sheet, visit  http://www.trilogy-capital.com/tcp/peace-arch/factsheet.html. To read a transcript of a recent Peace Arch investor conference call or listen to an archived recording, please visit  http://www.trilogy-capital.com/tcp/peace-arch/conference.html.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The closing of the transaction is subject to the negotiation and execution of definitive documentation and the approval of the Toronto Stock Exchange and the American Stock Exchange.

FORWARD-LOOKING STATEMENT

This press release includes statements that may constitute forward-looking statements, usually containing the words 'believe,' 'estimate,' 'project,' 'expect,' or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

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