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# 1938 Baird

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Deauville, France —Sep 29, 2005

DIGITAL CINEMA – XDC boosts international development by starting XDC France

With more than 80% of the European digital screens, XDC, the leading digital cinema company, is boosting its international development with the creation of XDC France. “France is a specific market for which a particular structure had to be developed. Thanks to its local presence, XDC France plans to be the trusted partner of the exhibitors and the distributors. We forecast to roll out 300 screens in France in over the next four years.”, says , Jacques Galloy, EVS Group CFO and XDC Director with much enthusiasm.

According to the specificity of French market, XDC has given the responsibility of its subsidiary to Alain Remond who possesses in-depth knowledge of both digital cinema and the French cinema industry. For several years, Alain has been one of the major players in the technical cinema industry and in cinema exhibition. After 15 years with Barco, Alain will take over operations as General Manager of XDC France by early 2006. “From the beginning, I appreciated the XDC initiative, but when they approached me to lead the French subsidiary, I realized the outstanding opportunity for new challenges, in particular with digital distribution. Although there are many barriers to be crossed, XDC has numerous assets and the unique expertise to succeed. My long-term relationship with Barco will strengthen our position in France and although there are many doubts about digital cinema from the key cinema industry players, XDC France will be there every step of the way as the ideal partner to insure the success of exhibitors and distributors who want to go all digital.”

“XDC will rely on its expertise developed in France and worldwide. We are very proud to have been chosen as the Official Partner of “Festival de Cannes” for preparing the digital content as well as providing the play-back servers. XDC has 10 of the 14 digital screens in France and we are confident that XDC France will enable us to rapidly increase that figure to a critical mass in order to attract digital distribution.” states Bernard Collard, General Manager, XDC International.

XDC France has also appointed one Sales Manager. The new company will rely on the Belgian Headquarters of XDC International where more than 40 people are actively deploying the largest European digital cinema network. XDC France will be fully functional in January 2006 as XDC headquarters monitors the preparation and follow-up of current business activities. “XDC is growing daily as more and more European films are managed by XDC for encoding and digital screening. A recent example of XDC’s turnkey involvement in the digital cinema chain is demonstrated in Christian Carion’s new movie, Merry Christmas (staring Diane Krüger and Guillaume Canet). With the creation of this subsidiary, XDC France will act as a strong catalyst for the digital distribution of French cinema productions”, explains Laurent Minguet, CEO of XDC International.
About dcinex™:
dcinex is the leading Pan-European provider of fully integrated and best in class solutions for movie operations. The company operates three business lines: Exhibitor Services, Content Services and Consulting.  dcinex Exhibitor Services provides end-to-end solutions, from equipment financing, sales, installation and maintenance to training and support services for movie theaters.  dcinex Content Services offers a complete range of post-production, mastering and transcoding services, as well as Pan-European physical and electronic delivery and digital rights management.  dcinex Consulting advises cinema operators, local authorities, real estate firms and corporate investors providing a.o. cinema design and lay-out, project management, feasibility studies as well as market research, expert witness and due diligence.
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