First Look Studios Establishes $80 Million Credit Facility to Finance its Continued Growth.

HOLLYWOOD -- First Look Studios, Inc. (Pink Sheets:FRST) today announced that it has closed a new, three-year, $80 Million Credit Facility with Merrill Lynch & Co., Inc. The asset-based facility relies on First Look Studios' accounts receivable, library of film titles and future ultimates of the company's upcoming film slate.

Henry Winterstern, First Look Studios' CEO, commented, "This facility is an important component of our plan to establish First Look Studios as a leading independent movie studio, comprising production, acquisition and distribution. It provides financial resources and flexibility that complement our existing support from Prentice Capital Management. We look forward to continuing to grow our company in the coming months and years."

The company indicated that, with the closing of this transaction, Prentice will shortly convert its initial investment in First Look Studios from convertible debt to equity, further strengthening the balance sheet and marking the strong commitment from Prentice to the company.

Mr. Winterstern continued, "Since forming First Look Studios last July, we have built a solid base for our future. In less than one year, we have brought together four companies, First Look Media, Capital Entertainment, DEJ Productions and Ventura Distribution, to form a distinctive, innovative and vertically-integrated movie company. We are now at more than $100 million in revenue at the current run rate. Our first theatrical release, THE PROPOSITION, has been well received, and our upcoming release of WASSUP ROCKERS later this month is a highly anticipated film by director Larry Clark. Strong equity backing from Prentice Capital has provided a solid financial foundation for First Look Studios and, with this credit facility, I am confident we will be able to accelerate our growth in theatrical releases, video/DVD distribution, and television syndication."

First Look Studios is based in Hollywood, California.

About First Look Studios, Inc.

First Look Studios, Inc. (www.firstlookstudios.com) was formed in July 2005 by the merger of First Look Media with Capital Entertainment. First Look Media had a 25-year heritage of domestic and international sales of videos, DVDs and movie rights. Capital Entertainment was operated by Henry Winterstern and had accumulated a library of high profile titles, including "American Idol," "Baywatch" and "thirtysomething," for DVD distribution in the U.S. In November 2005, First Look Studios was expanded through the acquisition of DEJ Productions, a unit of Blockbuster, Inc., which focused on the acquisition, development and distribution of feature films, primarily through rental and retail outlets. DEJ was executive producer of CRASH, which won the 2005 Academy Award for Best Picture.

With the recent acquisition of Ventura Distribution Inc.'s assets in March 2006, First Look has added rights to distribute a wide array of specialty videos and has expanded its array of sales channels to include direct distribution with mass merchants such as Best Buy, Target and Kmart. As of June 2006, First Look Home Entertainment has been established as the operating unit for the company's U.S. video business.

First Look Studios is backed by an affiliate of Prentice Capital Management, LP, a New York-based hedge fund.