Alliance Atlantis Signs Vinterberg For ``The Third Lie'': First English-Language Film from the Director of ``Celebration''.

LOS ANGELES AND TORONTO--(BUSINESS WIRE)--Aug. 13, 1999--

(NASDAQ:AACB) (TSE:AAC.A.) (ME:AAC.A.) (TSE:AAC.B.) (ME:AAC.B.) ALLIANCE ATLANTIS PICTURES, a division of ALLIANCE ATLANTIS COMMUNICATIONS INC., has signed with Thomas Vinterberg to write and direct his first English-language film, The Third Lie.

Mr. Vinterberg won critical acclaim for his film Celebration (Festen) at the 1998 Cannes International Film Festival winning the Jury Prize. Celebration went on to win a series of international awards including Best Foreign Language Film both at the 1998 Independent Spirit Awards and the New York Film Critics' Circle Awards as well as the European Discovery of the Year at the 1998 European Film Awards. Celebration was also nominated for Best Foreign Language Film at the 1998 Golden Globe Awards.

"Celebration was one of the most important cinematic events of last year and it is an honor to have Thomas join our family of filmmakers," said Andras Hamori, President, Alliance Atlantis Pictures. "The Third Lie is a powerful story that grapples with family tragedy, the horrors of war and the extraordinary power of childhood imagination."

The Third Lie tells the story of identical twins Lucas and Klaus who are reunited after a lifetime of separation. Tragically torn from his family and his brother at age four, Lucas kept notebooks that chronicled the boys' extraordinary relationship. In their final meeting, the reality of their separate lives rises starkly in contrast to the illusions of Lucas' notebooks, as the brothers are lost between loving each other, and being the strangers that they have become.

Mr. Vinterberg will write the screenplay with his regular writing partner Mogens Rukov based on the European best-selling trilogy, The Notebook The Proof The Third Lie, by Agota Kristof. Mr. Vinterberg's previous directing credits include The Boy Who Walked Backwards and The Biggest Heroes. The Third Lie will be produced by Mr. Hamori whose credits include, Istvan Szabo's Sunshine, David Cronenberg's eXistenZ and Atom Egoyan's The Sweet Hereafter.

ALLIANCE ATLANTIS COMMUNICATIONS INC. is a leading international creator, distributor and broadcaster of filmed entertainment with significant ownership of six Canadian television networks: HGTV (Home & Garden Television) Canada, History Television, Life Network, Showcase, Canal Fiction and Canal Histoire. Headquartered in Toronto, ALLIANCE ATLANTIS operates offices in Los Angeles, Montreal, Vancouver, London, Sydney, and Shannon. The Company's shares trade on the Toronto and Montreal exchanges under the symbols AAC.A, AAC.B and on NASDAQ under AACB.