Home Entertainment is a major growth engine of Lionsgate's business model. Fueled by 50% DVD penetration of consumer households and a $25 billion-plus worldwide market, Lionsgate's home video operations are expected to generate more than $400 million in revenues in fiscal 2005.

In addition to approximately 15 theatrical features, Lionsgate Home Entertainment will release 84 direct-to-video titles, an additional 83 titles from the Company’s television, family entertainment and fitness businesses, and more than 500 catalog promotions for a remarkable total of more than 700 titles during the upcoming year. These titles are expected to move over 60 million units of video and DVD discs in fiscal 2005—major studio-sized numbers achieved within the overhead structure and entrepreneurial culture of a true independent.

Home video revenues can typically equal two or more times the Company’s theatrical box office rentals on a given title, providing a major revenue stream during fiscal 2004 for feature films such as CABIN FEVER, HOUSE OF 1000 CORPSES, CONFIDENCE, WONDERLAND and HOUSE OF THE DEAD. Lionsgate's relatively large number of wide theatrical releases in late fiscal 2004 and early fiscal 2005 will catalyze its fiscal 2005 DVD slate, with commercial titles such as THE PUNISHER, GODSEND and DIRTY DANCING: HAVANA NIGHTS scheduled to join THE GIRL WITH A PEARL EARRING, THE COOLER, OPEN WATER and THE COOKOUT as likely high-impact performers at video and retail outlets during the year.