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# 1938 Baird.

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TOPEKA, Kan—Dec 17, 2003

Kaga Electronics Co., Ltd. and Ikegami Tsushinki Co., Ltd. to Distribute New QuVIS Digital Cinema Player

Kaga Receives First OEM License from QuVIS for its High Fidelity Digital Cinema Player
QuVIS, Inc., a pioneer and leader in digital cinema servers with wavelet based digital motion imaging technology, today announced an agreement to license a high fidelity player incorporating Quality Priority Encoding (QPE(TM)) technology to Kaga Electronics Co. Ltd. Kaga Electronics is known for its ability to boldly incorporate original ideas into commercial designs and has positioned itself to take advantage of the growing digital revolution. Kaga Electronics will distribute and service these players for the emerging digital cinema market and Ikegami Tsushinki will provide the support as the partner.

The new player is a third generation design derived from QuVIS' QuBit range of digital imaging servers. It incorporates QuVIS' new QDMC(TM) (QuVIS Digital Mastering CODEC) ASIC. The QDMC includes real time QPE (a wavelet based motion imagery process), support for a variety of transport methods, and AES encryption to guarantee secure delivery and playback of pristine digital images mastered in a QPE environment. Optimized for the digital cinema environment, the new unit will be aggressively priced and offer playback of digital cinema content at today's resolutions (including 2K) and optional playback of image resolutions up to 4K.

In development now, the player will be demonstrated at ShowWest in March 2004. First shipments of these units in North America and Asia are anticipated in the second quarter of 2004. Final pricing will be available in the first quarter of 2004.

"We are very pleased to license our high fidelity digital image player to Kaga Electronics Co.," says Kenbe Goertzen - QuVIS CEO, "Kaga and Ikegami provide an excellent combination of quality, engineering and worldwide support. We are excited to team up with them to provide the emerging digital cinema industry with another source for QPE enabled players delivering the world's highest fidelity digital cinema imaging."

"QuBit is one of most exciting technologies existing at present." Says Ryo Shima, General Manager Kaga Electronics, "Kaga's goal is to be the best in the digital field. This license is another example of choosing the best technology to enable further expansion of Kaga into the digital market."

In related news, QuVIS announced the debut of a technology that will enhance the art of filmmaking with a player that supports a full 4K image file. On December 16, 2003, QuVIS was joined by the ETC Digital Cinema Lab to provide an invitation only demonstration to members of the filmmaking community. The premiere showing included a demonstration of QuVIS' third generation technology playing a 2K image extracted in real time from a 4K master. With this announcement, QuVIS continues to pioneer digital cinema by leapfrogging the limitations of current technology and providing a system that meets the needs of today with a growth path to the higher resolution requirements of the future. Among the guests invited to participate in the meeting are members of the Digital Cinema Initiative (DCI,) a consortium of the seven major studios in Hollywood (Disney, Paramount, Universal, Warner Bros, MGM, Sony and 20th Century Fox). DCI was formed to develop a mutually agreeable set of minimum performance requirements and general technical recommendations for digital cinema that includes projection resolution and file compression format.

About QuVIS, Inc.: Quvis Technologies Inc. is a provider of digital cinema software and service. Quvis offers filmmakers, post-production houses and exhibitors a fast, reliable and attractively priced alternative for creating, archiving and distributing studio quality DCPs. For nearly two decades Quvis Technologies, Inc, a Seacoast Capital Partners company, has invented technology to move vast amounts of data in real time with extraordinary visual representation quality. Quvis' patented Quality Priority Encoding (QPE) enables ultra high quality image storage in an efficient format, without risking the distortion that often accompanies compression techniques. Quvis products have been trusted by more than 2,000 customers for digital mastering and cinema playback including Pixar, Universal, Paramount, Sony/Columbia Pictures, Fox, Miramax, Lucas Films, Warner Brothers, Light Storm, and DreamWorks. QuVIS, Inc. Directory page About Kaga Electronics, Co. LTD.: Kaga Electronics digital innovations have been remarkably progressive since it started in 1968. An independent all-round trading company, Kaga Electronics has consistently responded to customer needs with customized solutions, up-to-date products and services and a unique global network. The company has expanded its business to encompass four core businesses including: Electronics Semiconductor, EMS, Information Equipment and New Business. Kaga Electronics will continue to supply an optimum solution to customers by utilizing the synergy effect of all domestic and foreign group companies. TAXAN is the U.S. subsidiary of Kaga Electronics. Kaga Electronics, Co. LTD. Directory page About Ikegami Tsushinki Co.: Ikegami Tsushinki is one of the world's leading manufacturers of high quality professional broadcast equipment. Ikegami offers a broad range of TV cameras for ENG, EFP, Studio, HDTV, CCTV and Medical Imaging. Ikegami products have received various Emmy Awards for Engineering Excellence. The company's universal High Definition TV Cameras have been widely accepted by the broadcast industry as it continues the change over to the High Definition Television Format. Ikegami Tsushinki Co. Directory page
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