Lionsgate Brings Home a Living Doll With Bratz(TM) Franchise, Acquiring U.S. Distribution Rights From Crystal Sky Pictures to First-Ever Bratz(TM) Live Action Theatrical Feature

SANTA MONICA, Calif., Nov. 10 /PRNewswire-FirstCall/ -- Lionsgate (NYSE: LGF) , the leading independent filmed entertainment studio, announced that it will become home to the expanding entertainment franchise for Bratz(TM), the highly popular brand of fashion dolls manufactured by leading consumer entertainment products company MGA Entertainment. The announcement today was made by Lionsgate President Steve Beeks.

The studio has acquired from Crystal Sky Pictures the U.S. distribution rights to the first feature film based on the popular Bratz(TM) characters, tentatively entitled BRATZ: THE MOVIE. Crystal Sky Pictures is financing the live action feature film, directed by Sean McNamara (RAISE YOUR VOICE, "That's So Raven") and written by Susan Estelle Jansen (THE LIZZIE MCGUIRE MOVIE). MGA's Isaac Larian, Arad Productions' Avi Arad, and Crystal Sky's Steven Paul are producing the picture, and Crystal Sky Pictures president Benedict Carver will executive produce.

Lionsgate and MGA Entertainment have also reached a deal that provides the studio with the exclusive North American home entertainment distribution rights to future Bratz(TM) animated and direct-to-DVD features. The first title to be released under the deal will be BRATZ FASHION PIXIEZ(TM), an all-new direct-to-DVD feature that is scheduled for release in Spring 2007.

Bratz(TM) has quickly become one of the world's foremost toy lines and girls' lifestyle brands since its introduction in 2001, and its addition to Lionsgate's ever-growing library of popular children's brands enhances the Company's leadership as one of the primary distributors of children's and family entertainment. The Bratz(TM) array of spin-off products include a Bratz(TM) magazine, a top-rated animated series on 4 KidsTV, a number of DVD titles and videogames, as well as a number one-selling album on the Billboard Children's Chart and multiple lines of clothing, footwear and other accessories.

"There is no company that has a better pulse on what today's girl is looking for than MGA," said Lionsgate's Beeks. "Bratz(TM) has been a phenomenal success story; it's amazing to realize that the property is only five years old when considering its incredible popularity and penetration in the marketplace. At Lionsgate, we pride ourselves on delivering positive messages through unique and exciting experiences that empower young girls to follow their dreams. Bratz(TM) is a perfect complement to our ever-growing line of successful children's and family entertainment. We forged a terrific relationship with Avi Arad making THE PUNISHER and the direct-to-DVD Marvel Animated Feature series, and we are thrilled to be working with him at his new production company."

"I'm delighted that BRATZ will again give me the opportunity work with my friends at Lionsgate," said Avi Arad, Chairman, Arad Productions. "With its target audience of young girls, BRATZ represents a new chapter in the movie franchise business, and we couldn't ask for a better partner in this adventure than Lionsgate."

"We are very excited about working with Arad Productions and Crystal Sky Pictures to create the definitive BRATZ live action feature film," said Isaac Larian, CEO, MGA Entertainment. "We consider Lionsgate an ideal partner for our Bratz(TM) live action theatrical film and animated features and welcome the company's innovative marketing techniques."

"BRATZ underscores Crystal Sky's strategy of delivering strong film franchises to the worldwide distribution community," said Steven Paul, Chairman and CEO, Crystal Sky Pictures. "I am excited to be in business once again with Avi Arad, and for the first time with Isaac Larian of MGA; and there is no one better in marketing and distribution than our friends at Lionsgate."

MGA Entertainment will support BRATZ FASHION PIXIEZ(TM) and each subsequent Bratz(TM) direct-to-DVD feature with all-new lines of dolls and other toys based on each of the movies. The marketing and promotional campaign supporting the releases will include a massive advertising campaign, cross promotions and much more. Additional details on the marketing programs will be released at a later date.

BRATZ -- SYNOPSIS

BRATZ follows four teenage girls who are from socially and economically diverse backgrounds. What they have in common is their wish to be themselves and realize their dreams and aspirations. They start their journey separated by high school cliques, only to realize that by becoming Bratz, their lives will be more fulfilling. A story of empowerment and wish fulfillment, told through a unique mix of song, dance, and of course, fashion!

ABOUT LIONSGATE

Lionsgate is the leading independent filmed entertainment studio, winning this year's Best Picture Academy Award(R) for CRASH, generating two consecutive years of $300 million-plus domestic theatrical box office, operating a $500 million-plus home entertainment business and producing a broad slate of prime time television series for fiscal 2007. It 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 stable, 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 world.

Lionsgate Family Entertainment will release its first theatrical feature, the animated comedy HAPPILY N'EVER AFTER, on January 5, 2007. Upcoming theatrical films include the animated comedy FOODFIGHT!, due November 16, 2007. Lionsgate is one of the top two studios in direct-to-DVD children's features, and recently released the first titles under its multi-title deal with Marvel Entertainment to develop, produce, and distribute original animated DVD features based on some the company's most popular Superheroes, such as Captain America, Iron Man and Thor. In addition, Lionsgate recently released ARTHUR'S MISSING PAL, the first-ever CGI animated feature starring Arthur the aardvark and is also the distributor of The Doodlebops, Care Bears, Clifford the Big Red Dog, Maya & Miguel and other franchises.

ABOUT MGA ENTERTAINMENT

MGA Entertainment, a consumer entertainment products company headquartered in Van Nuys, California manufactures innovative lines of proprietary and licensed products, including toys, games, dolls, consumer electronics, home d??cor, stationery and sporting goods. BRATZ, which MGA launched in June 2001, has become one of the world's leading toy lines and girls' lifestyle brands. The BRATZ brand is also noted for having won Family Fun magazine's Toy of the Year Award four years in a row. With over 400 licensees worldwide, the BRATZ brand is distributed in more than 65 countries. For more information please visit: http://www.mgae.com/ and http://www.bratz.com/.

ABOUT ARAD PRODUCTIONS

Arad Productions is the personal producing outfit of Avi Arad. Arad is the producer of SPIDER-MAN 2 and SPIDER-MAN 3; X-MEN: THE LAST STAND; GHOST RIDER; THE HULK; DAREDEVIL; THE PUNISHER; ELEKTRA; and FANTASTIC FOUR. He is the executive producer of SPIDER-MAN; X-MEN and X2: X-MEN UNITED; BLADE, BLADE II and BLADE: TRINITY. As a specialist in youth marketing, Arad invented many toys and has produced numerous animated shows.

ABOUT CRYSTAL SKY PICTURES

One of the oldest independent film production, sales and financing companies in Hollywood, Crystal Sky, LLC was founded in 1977 by its chairman and CEO Steven Paul. Paul's credits include conceiving and creating the BABY GENIUSES franchise. Currently in post-production for Crystal Sky Pictures and Marvel Studios is GHOST RIDER, directed by Mark Steven Johnson and starring Nicolas Cage. In post-production for Crystal Sky Pictures is BIG STAN, starring Rob Schneider. In pre-production is DOOMSDAY written and directed by Neil Marshall for Rogue Pictures and the video game Castlevania from Konami written and directed by Paul W.S. Anderson.

  For further information, contact:

  For Lionsgate and Arad Productions:
  Sarah Greenberg
  310-255-3856
  sgreenberg@lionsgate.com

  Jodie Magid
  212-386-6885
  jmagid@lionsgate.com

  For corporate inquiries:
  Peter Wilkes
  310-255-3726
  pwilkes@lionsgate.com

  For MGA Entertainment & Bratz:
  Dave Malacrida / Rachel Griffin
  818-894-2525 x6590 / x6592
  DMalacrida@mgae.com / RGriffin@mgae.com

  For Crystal Sky Pictures:
  Andrew Hyatt
  310-843-0223
  andrew@crystal-sky.com