Morristown, NJ—Jul 23, 2009
Cinedigm Announces Agreement With Emagine for Phase 2 Deployment Program
Theatre Circuit First to Leverage Self-Financing to Bring Digital Cinema to Audiences
Cinedigm Digital Cinema Corp. (NASDAQ: CIDM) (formerly AccessIT), the leader in the digital cinema industry, today announced Emagine Entertainment, Inc. ("Emagine"), a Michigan-based cinema chain, will participate in Cinedigm's Phase 2 digital cinema deployment program and will be the first exhibitor to do so through self-financing. Emagine is one of Cinedigm's first Phase 1 deployment program exhibitor partners and has been utilizing their networked digital cinema systems since late 2005.
In Phase 2, Cinedigm will provide networked digital cinema systems, including Christie DLP Cinema(R) projectors, to the ten screens at Emagine's new Woodhaven, Michigan location. Christie Managed Services will be providing the long-term service agreement for this theatre. Under this new agreement, Emagine will become a senior lender to Cinedigm's Phase 2 deployment subsidiary. Cinedigm's subsidiary will make regular payments to Emagine based on an agreed-upon schedule similar to those of other long-term lenders.
"We've had great success with Cinedigm's digital cinema systems. Their technology has enabled us to bring unique, cutting-edge programming to our customers. Events like the live 3-D showings of the BCS and NBA games help set Emagine apart from competitors and is the reason we want to expand our relationship with Cinedigm to our new location," said Paul Glantz, founder of Emagine. "We're pleased that Cinedigm has worked with us to create this self-financing option which enables us to invest further in a business that is revolutionizing the movie-going experience."
"Emagine is breaking new ground with us, creating an innovative financing template for Cinedigm's rollout. This trend of self-funding by theatre owners is important given the ongoing growth of the theatre industry and the current lack of financing from traditional channels. We are confident that with the help of partners like Emagine, our Phase 2 deployment will continue to progress as planned," said Bud Mayo, chairman and CEO of Cinedigm.
"Cinedigm is pleased that our first exhibitor from our Phase 1 deployment has engaged us for Phase 2. We have valued our relationship with Emagine over the years and look forward to adding their new location to the growing number of screens contracted to our Phase 2 program for up to 10,000 digital cinema projection systems," said Chuck Goldwater, president of Cinedigm's Media Services Group.
Cinedigm's Digital Cinema division is the industry-leading deployment program for Digital Cinema that provides the funding, installation support and administration for the company's studio-supported Digital Cinema rollout plans.
To date, Cinedigm has contracted for and completed the rollout of nearly 4,000 systems in forty-one states with exhibitors including Atlas Theatres, Allen Theatres, Carmike Cinemas, Celebration! Cinema, Cinema West, Cinetopia, Dickinson Theatres, Emagine, Galaxy Cinema, Marquee Cinemas, Krikorian Premiere Theatres, MJR Theatres, Neighborhood Cinema Group, Premiere Cinema Corp., Rave Motion Picture Theatres, Showplace Cinemas, UltraStar, and Cinedigm's own Pavilion Digital Showcase Theatre.
Its Phase 2 plan for up to an additional 10,000 screens will provide networked, turnkey Digital Cinema systems in conformance with DCI specifications.