PAE Peace Arch Ent Grp

Peace Arch� Entertainment Group Inc. (AMEX: PAE) (TSX: PAE) announced today that trading of its shares were temporarily halted this morning on the Toronto Stock Exchange.

The Company previously announced that it will be unable to timely file its annual financial statements for the year ended August 31, 2008 in Canada and related CEO and CFO certifications, management discussion and analysis and Annual Information Form due to management's re-evaluation of the Company's investment in ten movie titles and its participation in their production during fiscal 2006 and possible restatement of its consolidated financial statements for fiscal 2006 and fiscal 2007. In addition, the Company previously stated it has concerns that certain transactions in connection with certain non-owned production companies and sub-distribution agreements may not have been appropriate and may not have been accounted for correctly. The Board has appointed a Special Committee to investigate the Company's involvement with the non-owned production companies and the nature of the sub-distribution agreements.

Pursuant to a Notice of Temporary Order and Hearing issued by the Ontario Securities Commission on December 4, 2008, trading in the Company's shares was halted in Canada for a period of 15 days from the date of the Order. The Company intends to comply with the requirements of the Ontario Securities Commission in connection with its Notice of Temporary Order.

Forward-Looking Statements

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, that the corresponding restatement of the Company's financial statements may change based upon the Audit or Special Committee's ongoing analysis, that the Company's ability to file required reports timely with the Securities and Exchange Commission and Canadian securities regulators will be impaired, that potential claims or proceedings may arise relating to such matters, that the Audit or Special Committee in consultation with the Company's independent auditors will determine that the proper accounting differs from the accounting treatment upon which the assumptions and forward-looking statements in this release are based and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission and with the Canadian securities regulators. 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.

Distributed by Filing Services Canada and retransmitted by Marketwire

Contact: Gerry Noble Chief Executive Officer Peace Arch Entertainment Group Inc. 416.783.8383 Email: Email Contact