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# 1930 de Forest

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Morristown, NJ—Feb 11, 2010

Cinedigm Announces Agreement with B&B Theatres For Phase 2 Deployment Program

NATO Cinema Buying Group Exhibitor-Buyer Agreement Continues to Gain Traction with Exhibitors
Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today announced B&B Theatres, a Missouri-based cinema chain, has signed an agreement to deploy 205 digital projection systems as part of Cinedigm’s 10,000 screen Phase 2 digital cinema deployment program.

B&B is the second of many National Association of Theatre Owners (NATO) Cinema Buying Group (CBG) members expected to work with Cinedigm using a newly completed form of contract developed for CBG members. The CBG represents more than 600 members that collectively have over 6,000 screens. B&B selected Cinedigm’s Exhibitor-Buyer financing plan, which means the exhibitor will purchase its own equipment for 205 screens at 31 locations and Cinedigm will administer and manage the systems under its Virtual Print Fee agreements with all the major studios for up to a ten-year term.
 
In Phase 2, Cinedigm has created an Exhibitor-Buyer financing option for exhibitors. When exhibitors participate, they select and purchase Cinedigm-certified fully-networked digital cinema systems and Cinedigm manages the reporting, billing and collection of VPFs from movie distributors, receiving a fee for doing so. Cinedigm and the CBG have system supply and service arrangements with Barco, Christie, NEC, and Sonic Equipment Company. B&B has selected Sonic Equipment Company based in Iola, Kansas as the Service Provider for the duration of the Cinedigm agreement.
 
Bob Bagby, President of B&B Theatres: “As B&B celebrates its 86th year in business, we’re thrilled to be transitioning to digital cinema. In our 86 year history, we’ve seen many technological improvements, including the transition from silent film to sound; black and white film to color; mono sound to surround sound; surround sound to digital sound; and slope seating to stadium seating. We are truly excited to usher in the next technological advance of digital cinema and are committed to converting our circuit over the next two years. The digital transitions will ensure that we will continue to bring the best quality movies to our audiences and enable us to develop a wider array of alternative content options. We’ve been using Preflix, UniqueScreen Media, a Cinedigm Company’s, cinema advertising solution for 10 years and are excited about extending our relationship using the CBG Phase 2 contracts.”
 
“B&B joins R/C Theatres as the second chain to contract with Cinedigm using the CBG Exhibitor-Buyer agreement. We’re excited to be moving forward with them and look forward to doing so with the many other CBG members in our pipeline,” said Bud Mayo, Chairman and CEO of Cinedigm.
 
Chuck Goldwater, President of Cinedigm’s Media Services Group, said, “Cinedigm is proud to expand our relationship with B&B beyond our Preflix advertising solution. B&B’s commitment to digital cinema and to bringing the best quality programming including alternative content options to their audiences is evident. Cinedigm is proud to be working with them to help fulfill this commitment and looks forward to working with the many other CBG members who are excited to move forward with our Phase 2 program.”
 
Cinedigm provides the industry-leading deployment program for Digital Cinema that facilitates the funding, installation support and administration for the company's studio-supported Digital Cinema rollout plans.  In April 2008, the CBG, a buying program of the National Association of Theatre Owners (NATO) for small and independent theatre operators, announced the selection of Cinedigm as the digital cinema integrator of choice for the CBG’s 600+ members in the United States and Canada.
 
To date, Cinedigm has contracted for and completed the rollout of more than 4,500 systems in forty-one states with exhibitors including Atlas Theatres, Allen Theatres, Carmike Cinemas, Celebration! Cinema, Cinema West, Cinetopia, Dickinson Theatres, Emagine, Galaxy Cinema, Georgia Theatre Company, Great Escape Theatres, Marquee Cinemas, Krikorian Premiere Theatres, MJR Theatres, Neighborhood Cinema Group, Premiere Cinema Corp., Rave Motion Picture Theatres, R/C Theatres, Showplace Cinemas, UltraStar, and Cinedigm's own Pavilion Digital Showcase Theatre.

About Cinedigm: Cinedigm Digital Cinema Corp. is a leader in providing the services, experience, technology and content critical to transforming movie theaters into digital and networked entertainment centers. The Company partners with Hollywood movie studios, independent movie distributors, and exhibitors to bring movies in digital cinema format to audiences across the country. Cinedigm's digital cinema deployment organization, state of the art distributor and exhibition software, and marketing and distribution platform for alternative content and independent films are a cornerstone of the industry's digital cinema transformation. With the April acquisition of New Video, the world's largest aggregator of independent digital content and leading distributor of quality entertainment, CIDM has created a new full service end-to-end digital studio, enabling the Company to acquire and distribute independent films and specialty content both theatrically and via digital, mobile and home media platforms. Cinedigm Directory page About B&B Theatres: B&B Theatres has been family owned and operated since 1924 when Elmer Bills Sr. opened a movie house in Salisbury, Missouri where the future Mrs. Bills played the piano for silent movies.  During the company’s 94 years, and four generations of family involvement, it has seen the coming of sound, color, Technicolor, stadium seating, multiplexes, recliners and digital cinema. B&B Theatres is the 7th largest theatre chain in North America and operates approximately 400 screens at 50 locations in Kansas, Florida, Iowa, Missouri, Mississippi, Oklahoma and Texas. B&B Theatres Directory page

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