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# 1941 RCA

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Raleigh, N.C.—May 26, 2004

Microspace Completes Phase One of Digital Cinema Pilot Program By Delivering Shrek 2 Via Satellite

Pilot to Continue Throughout Year, Making Digital Cinema Reality for Many
Microspace Communications Corporation (Microspace), the leading provider of point-to-multipoint satellite services, announced today it has successfully delivered Shrek 2 via satellite, completing the first phase of a pilot digital cinema program with DreamWorks LLC. The digital film was delivered using Microspace's VELOCITY® satellite service.

"Microspace has been preparing for this over the past two years by participating in many test and demo situations with top entertainment industry companies and executives. We have now moved from the lab to delivering the summer blockbuster movie to a live theatre with paying customers," says Sam Matheny, manager of digital cinema development for Microspace. "We are proud to be working with DreamWorks to make digital cinema a reality and allow the public to experience the benefits."

Shrek 2 was distributed to Galaxy Cinemas in Waterloo, Ontario. The next phase of the program will involve gradually increasing the number of receive theatre sites.

"While the industry continues to perfect digital servers and projectors, we are still hand-delivering electronic files to theatres. Microspace's satellite delivery is timely, secure and seamless," says Mark Christiansen, head of operations for DreamWorks' distribution.

Microspace has been taking a leading role in digital cinema initiatives by being the first to deliver 4K Standardized Evaluation Materials (StEM) via satellite. It is one of the first satellite companies to obtain membership in the International Theatre Equipment Association (ITEA) and a sponsor of the Digital Cinema Laboratory's research and testing initiatives by donating a complete VELOCITY satellite network package. Microspace is also a member of the Society of Motion Picture and Television Engineers (SMPTE) and its DC28 committee, a forum to address technologies, and develop and recommend standards for digital cinema.

Concluded Matheny, "With the successful kick off of the pilot, we are beginning to move from the test phase of digital cinema to the commercial phase with so much more to come."

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 About Dreamworks: Steven Spielberg, Jeffrey Katzenberg and David Geffen launched DreamWorks SKG in October 1994. Their vision was to create an artist-friendly studio to develop, produce and distribute superior film and music entertainment that would inspire and delight audiences worldwide. DreamWorks SKG is now a leading producer of live-action motion pictures, animated feature films, network, and cable television programming, home video and DVD entertainment and consumer products. Dreamworks Directory page

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