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# 1938 Baird.

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Santa Monica, CA—Aug 5, 2002

China Opens Nationwide Digital Cinema Network on Avica FilmStore™

China Film Group Corporation has selected Avica's FilmStoreTM Digital Cinema Players and Avica's Digital Cinema Mastering System exclusively for its initial deployment of Digital Cinema throughout the People's Republic of China. The Group's Hua Long Digital Productions Co., Ltd. has taken delivery of the Avica Mastering System to produce distribution masters of digital content produced in China, and China Film Group Corporation has deployed Avica FilmStore Digital Cinema Players in 10 theaters in Beijing, Shanghai, Shenzhen, Guangzhou and Chengdu.
 
FilmStore is the server of choice worldwide and enjoys the widest installed base of any Digital Cinema server. Avica FilmStores have been deployed in China as the first wave of a scheduled 100 screen deployment that will take place over the remainder of 2002 and continue into 2003. "Avica's ability to assist in integration of our distribution and conditional access system, as well as the overall reliability and ease of use of their products and software, was a key consideration in our selection process," explained Mr. Yaozu Huang, Board Director and Chief Engineer of China Film Group Corporation and President of Hua Long Digital Productions Co., Ltd. "Avica's unique expertise with Digital Cinema mastering and distribution, as demonstrated with digital release of Lucasfilm's Star Wars Episode II: Attack of the Clones movie, made their products a logical choice for our installations." "We are honored that the Avica FilmStore has been selected by China Film Group," commented Andrew Maltz, Avica Technology's President and CEO. "The conversion of movie screens throughout the world to digital technology has now moved to an entirely new level with the commitment of China Film Group Corporation to upgrade its movie distribution and presentation infrastructure. Exhibitors worldwide are aware of the many benefits and increased revenue potential offered by the digital format and we expect the industry conversion we've seen this year to continue at an increasing rate."
 
An Avica FilmStore also provided playout for a preview screening of Lucasfilm's Star Wars: Episode II Attack of the Clones during the Shanghai Film Festival in June. The ten newly installed servers are currently screening the movie in China's historic first nationwide Digital Cinema release.

About Avica Technology Corporation : Avica is a leading provider of technologies and services for Digital Cinema post-production, distribution and exhibition. Avica's FilmStoreTM family of products handles content delivery and presentation for distribution networks; including encoding and encryption, packaging and distribution, security and all aspects of theatre management and screening. For additional information on Avica and its products visit http://www.avicatech.com. Avica Technology Corporation Directory page
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