Peace Arch Entertainment Group completes private placement

On June 7, 2006, Peace Arch Entertainment Group Inc., a film and television company listed on the TSX and AMEX, announced that it had closed an arm's length private placement of 7.5 million of the Company's Common Shares to a group of institutional and private investors at a purchase price of $1.21 per share, yielding gross proceeds of $9,075,000.

The net proceeds of the offering will be used by Peace Arch to fund working capital requirements and to repay the interim debt financing the Company incurred in connection with its recent acquisition of leading Canadian home entertainment distributor kaBOOM! Entertainment Inc.

Westwind Partners Inc. acted as sole agent to Peace Arch in Canada and was advised by Anil Aggarwal and Krisztian Toth of Fasken Martineau.