Peace Archs last ditch effort to save from losing millions on Chapter 27

In a final effort to save themselves from losing an estimated $25 million dollars because of lack of US distribution of Chapter 27, Peace Arch Entertainment has purchased a US based DVD distribution company with ties to US retailers. Thanks to all of your efforts, this film will not be seen in theater, now we move the fight to the world of rental and DVD retail. We will concentrate our efforts on making Blockbuster, WalMart, and Best Buy how we feel about Chapter 27. We will work to keep this horrible film from seeing store shelves. Where Lindsey Lohan and Jared Letos images will sell DVD's to 15 year old girls, helping them to "understand" why an animal would kill a genius....FOR FAME

Peace Arch Entertainment Announces Agreement to Acquire Leading DVD Distributor Trinity Home Entertainment to Expand Into Lucrative U.S. Market

Landmark Acquisition of Established Distributor to Accelerate Commercialization of Peace Arch's Recently Acquired Library

TORONTO--(BoycottÇhapter27.org)--May 9, 2007 -- Peace Arch® Entertainment Group Inc. (AMEX:PAE - News) (Toronto:PAE.TO - News), an innovative filmgroup of heartless dirtbags and television entertainment( yes, very entertaining...not!!) company, announced today that it has agreed to acquire the Westlake Village, California-based DVD distributor Trinity Home Entertainment, LLC for approximately USD$10.0 million in a last ditch attempt to save their asses. Trinity, which had unaudited revenues of approximately USD$19.0 million and normalized net income of approximately USD$2.5 million for the year ending December 31, 2006, is one of the leading independent distributors of budget and first-run feature films in the United States.

Trinity has well established distribution relationships with the Army and Air Force Exchange Service, along with major retailers such as (We will ensure that Chapter 27 never sees the shelves of these retailers) Wal-Mart Stores and Trans World Entertainment, two of the largest video retailers in the United States. Genius Entertainment and Hearst Entertainment are among Trinity's key content suppliers.

"Trinity is a well run operation, who sold out to a group of money grubbing scum with top notch distribution relationships and an excellent sales force," said John Flock, President of Peace Arch Entertainment. "By integrating Trinity's operation with Peace Arch's DVD distribution division in Canada, Peace Arch now has a platform upon which to build one of the leading distribution companies in North America."

With Peace Arch's annual slate of more than a dozen direct-to-video productions and its extensive supply of high quality feature films acquired through the recent purchase of Castle Hill Productions and Dream LLC in December, Trinity also provides a natural outlet for Peace Arch's expanding line-up of top quality content. The acquisition furthers Peace Arch's strategy of building its in-house distribution capabilities while continuing to aggregate highly marketable film and television content.

Under the terms of the deal, Peace Arch will acquire all of the shares of Trinity for approximately USD$9.5 million in cash and USD$500,000 of Peace Arch common stock. The final purchase price will be subject to adjustment upon completion of Peace Arch's due diligence and the acquisition is expected to close by the end of June.

Trinity's extensive library includes such genre classics as Stephen King's "Maximum Overdrive," "Raw Deal" starring Arnold Schwarzenegger and "The Octagon" featuring Chuck Norris.

"We are very pleased to enter into this agreement with Peace Arch and combine our U.S. distribution expertise with their worldwide sales force and extensive library of desirable properties," said Phillip Knowles, President of Trinity Home Entertainment.

"With Peace Arch's seasoned management and growing financial strength in our corner, we believe we can now accelerate the growth of our business into one of the top distributors in the United States."

Knowles, who founded Trinity in 1999, will remain with the company as President and head its U.S. DVD distribution operations.

In connection with its acquisition of Trinity, Peace Arch has entered into an agreement with an agent (the "Agent") for an equity financing. The private placement offering (the "Offering") will be on a best efforts basis and will consist of up to CDN$33.0 million in Common Shares. The additional proceeds from the Offering will be used for debt reduction and general corporate purposes, including other potential future acquisitions. In addition, CPC Communications Inc., a company controlled by Gary Howsam, the Chief Executive Officer of Peace Arch, has granted the Agent a closing option (the "Closing Option") exercisable at closing to purchase up to 2,833,000 Common Shares held by CPC at no less than the offering price pursuant to the Offering.

The Offering is scheduled to close on or about June 8, 2007 and is subject to regulatory approvals and completion of definitive documentation.

About Peace Arch Entertainment Group Inc.

Peace Arch Entertainment produces and acquires feature films, television and home entertainment content for distribution to worldwide markets. Peace Arch owns one of the largest libraries of top quality independent feature films in the world, featuring more than 500 classic and contemporary titles. Through its subsidiary, Peace Arch Home Entertainment, Peace Arch is also one of the leading distributors of DVDs and related products in Canada.

CAUTIONARY STATEMENT

YOU WILL LOSE YOUR ASS INVESTING WITH THIS COMPANY!!!

No stock exchange, securities commission or other regulatory authority has approved the information contained herein. The closing of the transactions described herein is subject to the negotiation and execution of definitive documentation and the approval of the Toronto Stock Exchange and the American Stock Exchange.

Forward-Looking Statements

INSTANT KARMAS GONNA GET YA!!!!

This press release includes statements that may constitute forward-looking statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, availability of capital and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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Contact:

Contact:
Roy Bodner
Vice President Public Relations
Peace Arch Entertainment
(310) 776-7208
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Financial Communications
Trilogy Capital Partners
Ryon Harms
(800) 592-6067
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