For Immedia= te Release:

EMA Loss Prevention Committee Comm= ends New Lionsgate Source Tagging Decision

Says Dual Source Tagging Will Decr= ease Costs and Shrink

ENCINO, CA (November = 14, 2006) … The Loss Prevention Committee of the Entertainment Merchants Association today issued the following statement regarding the decision of = Lionsgate to ship all new-release DVDs with both Sensormatic and Checkpoint Electronic Article Surveil= lance tags:

The Loss Prevention Committee of the Entertainme= nt Merchants Association (EMA) commends and supports the decision by Lionsgate to ship all new-release DVDs with both Sensormatic and Checkpoint Electronic Article Surveil= lance (EAS) tags.

Members of the Loss Prevention Committee, includ= ing loss prevention executives representing Target, Movie Gallery, Hastings, Circuit City Stores, and Blockbuster, agree that source tagging is a deterr= ent to external theft and that delivering the product with the appropriate EAS = tag to each retail location is essential. Tagging product for both systems assu= res such success.

DVD retailers generally use one of several EAS systems, such as Sensormatic or Checkpoint, to = detect when a DVD is removed from a store prior to purchase. The cost of carrying duplicate inventory at wholesale distribution facilities and, in some cases, retail distribution centers, is costly. As a result, nearly all events in supply chain experience increased costs. And occasionally, product is shipp= ed to retail with the wrong EAS tags, especially when a retailer requires rush replenishment for a popular title.

Lions= gate's new = policy will not only decrease its operating costs, but will decrease operating cos= ts and shrink throughout the supply chain.

Loss Prevention Committee Co-chair Mike Currier = of Circuit City Stores states, "Now, sto= res will no longer have Lionsgate's product deliver= ed with inappropriate tagging when requiring rush replenishment. This will ass= ist us in reducing costly inventory shrink and help keep product on the shelves= for sale."

Bob Geistman, Chairman of the EMA Video Board and Senior Vice President of Ingram Entertainment adds, "Efficiencies in supply chain are critical in today's economy. Lionsgat= e's innovative initiative will not only reduce their costs and better support t= heir customers, but it will reduce costs in warehousing, distribution and retail= ing."

The Entertainment Mer= chants Association (EMA) was established in April 2006 through the merger of the V= ideo Software Dealers Association (VSDA) and the Interactive Entertainment Merch= ants Association (IEMA). EMA is the not-for-profit international trade associati= on dedicated to advancing the interests of the $32 billion home entertainment industry. EMA represents more than 1,000 companies throughout the United States, Canada, and other nations. Its members operate more than 20,000 retail outlets in the U.S. th= at sell and/or rent DVDs and computer and console video games. Membership comprises= the full spectrum of retailers (from single-store specialists to multi-line mass merchants), distributors, the home video divisions of major and independent motion picture studios, and other related businesses that constitute and support the home entertainment industry.

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For more information, = please contact:

Sean Bersell, Vice President, Public Affairs

Entertainment Merchants Association (EMA)

818-385-1500 Ext. 226 = or sbersell at entmerch.org