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Raleigh, NC—Mar 13, 2006

Microspace Communications Announces Letter of Intent with Paramount Pictures for Expanded Digital Cinema Pilot Program

Deal Builds on Existing Two-Year Distribution Agreement with Dreamworks SKG
Microspace Communications Corporation (Microspace), the leading provider of point-to-multipoint satellite services, today announced that it has signed a non-exclusive, non-binding letter of intent to partner with Paramount Pictures for satellite delivery of digital cinema. Since 2004, Microspace has delivered several films from Paramount’s Dreamworks SKG via its VELOCITY service to select digitally-equipped theatres in North America, including Shrek 2, Collateral and Shark Tale.

The program, which includes installation of a VELOCITY system at no cost to the participating theaters, decisively demonstrates the business advantages of satellite distribution, including cost-effectiveness, reliability, security, and work flow, according to Microspace VP and General Manager Joe Amor.

“Over the past three years, we have worked with most of the major movie studios in the development of digital cinema delivery,” said Amor. “This new agreement with Paramount affirms our core strategy and strongly bolsters our current plans to extend our existing digital cinema pilot program in 2006. “

“VELOCITY has consistently proven its reliability and will be a cost-effective solution for mass-market distribution of digital cinema and related in-theatre content,” said Mark Christiansen, executive vice president, operations, for Paramount Pictures. “As the number of digital screens and theatres increases, our partnership with Microspace will be critical to expanding our distribution channels for digital entertainment.”

VELOCITY, Microspace’s high-speed video, data and audio broadcasting service, provides an optimum solution for businesses requiring economical and reliable content delivery from one to multiple locations. Compared to terrestrial or traditional shipping solutions, VELOCITY is quicker and easier to implement and offers significant cost savings. The service is available as either a dedicated solution or on-demand service, enabling customers to easily and affordably expand bandwidth as their content delivery needs change.
About Microspace Communications: Microspace Communications Corporation (Microspace), a subsidiary of Capitol Broadcasting Company, is the leader in satellite services for digital cinema, business communications and digital signage. The company operates the largest global business satellite broadcasting network with nearly 250,000 remote links worldwide. With a 25-year heritage, Microspace's VELOCITY® satellite services power its digital cinema network along with private networks for Morgan Stanley, Abercrombie and Fitch, John Deere and many, many more. The VELOCITY service is available either as a dedicated solution or as an on-demand service, enabling customers to easily and affordably expand bandwidth as their needs change. Microspace headquarters are in the U.S. with a presence in Europe and Latin America. For more information, visit http://www.microspace.com. Microspace Communications Directory page
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