Relativity Media Principal Kavanaugh Wins Litigation Brought by PR Exec Sitrick

LOS ANGELES--(Business Wire)--
In the ongoing and much publicized trial Kavanaugh vs. Sitrick, on
Friday, February 22, 2008, the Honorable Judge Chalfant, of the Los
Angeles Superior Court, presented the highly anticipated ruling. He
found in favor of Kavanaugh, namely that Sitrick is bound by the terms
of his 2002 Settlement Agreement with Kavanaugh.

This case arose because Michael Sitrick breached a November 2002
Agreement he entered into with Ryan Kavanaugh. In the fall of 2006, he
ran into Court, without notice to Mr. Kavanaugh, and obtained a TRO
freezing all of Mr. Kavanaugh's assets and the assets of numerous
third parties -- all based on a 2002 Judgment that had been released.
The Appellate Court immediately overturned the initial Court's ruling
and Mr. Kavanaugh sued Mr. Sitrick for breaching the settlement
agreement. Sitrick then presented a new claim - specifically that he
believed that Kavanaugh had breached a representation that the
aggregated value of certain of his holdings did not exceed $100,000.
Sitrick promised the Court (and the papers) "overwhelming recent
evidence" which proved this. Today the Court found otherwise made a
final decision against Michael Sitrick.

As stated by the Honorable Judge Chalfant in today's Statement of
Decision After Court Trial: "The court permitted Sitrick considerable
leeway in pursuing discovery from Kavanaugh and from third parties in
this case. This leeway permitted Sitrick to verify whether Kavanaugh
was hiding assets when he made the 100k warranty. Yet, Sitrick has
developed only evidence that Kavanaugh was truly indigent in November
2002. Thus, Kavanaugh made a fortune, lost it, and made another all
before his mid-30's. This may say something about Kavanaugh's
risk-taking, his acumen, or something else, but it is undeniable that
he was impecunious at the time of the 100k warranty...Sitrick is bound
by the November 2002 Agreement and may not execute the judgment
against Kavanaugh."

Ryan Kavanaugh commented: "People encouraged me to settle this for
the past few years, kept telling me it was a nuisance and a
distraction. There was no way I was going to pay Mike and let him keep
doing this to other people. I understand he has been involved in over
40 legal matters and uses the press as a litigation tactic, as he
tried to here. I wasn't going to let it happen just as a matter of
principle. Hopefully, this will teach him a lesson that justice in the
end does prevail and that he can't keep using his money and press
influence to bully people."

Mr. Kavanaugh's attorney, Carol Genis, of Bell, Boyd & Lloyd in
Chicago stated: "Today's decision unequivocally confirms that Sitrick
and his lawyers had no case here. This is a great victory for Ryan
Kavanaugh because truth prevailed."

Mr. Kavanaugh is represented by Carol Genis of Bell Boyd and Lloyd
from Chicago and also used Tom Weiss and Matthew Kavanaugh (of Harris
and Ruble). Mr. Sitrick was represented by Patricia Glaser and Mark
Krum of the Christensen Glaser Firm.

for Relativity Media
Lynda Dorf, 310-248-6105
ldorf@bwr-la.com

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