Decide Fate of Hollywood Movie

LIONSGATE AND HABBO TEAM UP TO LET MILLIONS OF TEENS DECIDE THE FATE OF A HOLLYWOOD MOVIE

Innovative Step in New Media Will Allow Habbo Users Worldwide To Determine The Viability Of An Animated Feature Film Based On The Habbo Virtual World Taking Place Online January 2007

SANTA MONICA, CA/LOS ANGELES, CA (January 17, 2007) – Lionsgate (NYSE: LGF), the leading independent filmed entertainment studio, goes viral this January as the company, identifying the next step in new media opportunities, has partnered with HABBO, one of the world’s largest online communities for teenagers, to allow today’s teens to determine the fate of a Habbo animated release. Utilizing this interactive technology, Lionsgate will tap directly into the online community for feedback on a potential filmmaking endeavor with Habbo. Starting on January 15, “Habbos” will be able to view ten very different animated shorts based on the Habbo World, which will be posted on Habbo.com and local Habbo sites around the world and voted on by the millions of registered users of these sites. The animated shorts were created in a variety of styles – from CGI to flash to 2-D animation by renowned animation houses from around the world. The “Habbos” will have the option to vote on whether or not Lionsgate should produce and distribute a longer feature film for the DVD and online marketplace based on their feedback on the animated shorts.

These ten “Habbo”-sodes will be available for 14 days, where registered users will be invited into the venue to screen the shorts and vote “HABBO movie or not!” Based on the resulting vote, Lionsgate and Habbo will determine whether to green light a full-length film, even using this input to determine the genre and animation style of the movie. The resulting film would be released both on DVD and online, distributed by Lionsgate.

“Lionsgate has established itself as a true leader in the distribution of family entertainment and innovative marketing. Through this unique partnership with HABBO, we are going directly to the online community and putting the power in their hands by allowing them to determine what movie they want to see,” said Michael Rathauser, Vice President of Marketing, Lionsgate. “This partnership with Habbo will also provide us with valuable information and the opportunity to explore new and different targeted electronic distribution platforms for content that resonates within a very defined audience. It’s an exciting new world of opportunity.”

“We’re proud to announce our partnership with Lionsgate. We were previously approached from several major studios. However, Lionsgate stands out as an expert in the teen film market and they share Sulake’s commitment to quality, innovation and fun,” said Teemu Huuhtanen, President, North America, Sulake Corporation.

“Habbo-sodes were submitted by key animation studios located around the world and we appreciate the immense talent contributed to this project. The opportunity to now position Habbo as a leading distribution and promotional channel of all digital content from video to music is tremendous. Furthermore, by integrating our millions of Habbo users into this project, we will be spearheading a new kind of user-generated content as we empower them with the ability to determine the future of this animated film,” he added.

This partnership between Lionsgate and HABBO marks the second time the two companies have collaborated to create a unique online experience for consumers. In July 2006, HABBO.com hosted a virtual red-carpet premiere event for Ultimate Avengers 2, the highly-successful direct-to-DVD Marvel Animated Feature. Tens of thousands of Habbos attended the screening, which was the first time the online community was able to view 10 full minutes of a never-before-seen film prior to its release.

The animations can be seen at www.habbo.com/community/animation