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# 1965 Dalto

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Liege, Belgium—Dec 21, 2005

1st roll out phase completed, XDC increases major stake in European Digital Cinema. XDC financed digital cinema installations chalk up box office successes

XDC S.A., Europe’s leading digital cinema integration and service company, which has financed and rolled out over 200 digital cinema screens over 9 countries (Belgium, The Netherlands, Luxembourg, Germany, Switzerland, Austria, Spain, France and Sweden), in less than 6 months, announced today that the first roll out phase is approaching completion as originally planned. Laurent Minguet, CEO of XDC said, “Together with all our partners, we made it happen and I’m happy to see the cinema community’s faith in the XDC concept and I’m confident that 2006 will be a very exciting time for digital cinema in Europe”.

XDC’s progress, since launching its initiative last year has been outstanding. Over 200 cinemas have been equipped and their personnel trained to show digital movies. Over 60 movies have been processed and distributed on behalf of most of the major production companies around the world. These include Star Wars Episode III – Revenge of the Sith, LucasFilm/20th Century Fox; Madagascar, DreamWorks SKG/United International Pictures; Oliver Twist, Pathé; Frank Miller’s Sin City, Miramax/Buena Vista International; The Island, DreamWorks/Warner Bros.; Flight Plan, Touchstone/Buena Vista International; Harry Potter and the Goblet of Fire, Warner Bros; Polly Blue Eyes, Magnolia, MDR, Equinox/NFP; Merry Christmas/Joyeux Noël (several producers); The Chronicles of Narnia – The Lion, The Witch and The Wardrobe, Buena Vista International and Chicken Little, Buena Vista International. “Whilst Sweden represents the highest number of digital screens financed by XDC, in less than six months we have achieved remarkable market presence in the German speaking areas (Germany, Austria, Switzerland) with more than 50 screens, and growing daily. Many German exhibitors have reported significant increases in box-office since installing their XDC financed equipment and this against a considerable decline in box office in the country. One southern German operator reported over 5,500 seats sold for the first week and over 2,900 seats sold for the second week for the digital movie presentation of Frank Miller’s Sin City,” said John Birchell Hughes, Business Development Manager at XDC in charge of distributor relations for the region and with the major Hollywood studios.

XDC has also being working hand in hand with equipment manufacturers and industry organisations to achieve the highest levels of image quality and security for digital cinema content. Recently, its server equipment was tested rigorously in The Walt Disney Company’s™ laboratories and added to Disney’s list of MXF Inter-op compliant servers. XDC supports industry interoperability initiatives, and all its clients’ endeavours to fully embrace the recommendations in the industry guidelines to digital cinema – the Digital Cinema Initiatives (DCI) Digital Cinema Specification. Alone amongst European systems integrators of this magnitude, XDC offers its partners a cost neutral technology upgrade plan which insulates them from technological obsolescence. For instance, “From the beginning of 2006 all XDC sites will be upgraded to directly accept MXF packaged content”, said Bernard Collard, General Manager of XDC. Regarding the mastering capabilities, today XDC can process MXF packages, such as it successfully carried out for movies like Flight Plan, Chicken Little and The Chronicles of Narnia – The Lion, The Witch and The Wardrobe.

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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