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Woodland Hills, CA—Feb 9, 2012

Cinedigm Digital Cinema Corporation Announces Digital Deployment for Zyacorp Entertainment’s Cinemagic Stadium Theaters

Deal will enable the rollout of 79 New Digital Cinema Screens at 7 sites
Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in digital cinema, today announced a long-term VPF deployment agreement with Zyacorp Entertainment’s Cinemagic Stadium Theaters.  The agreement will enable the conversion of Cinemagic’s theatres to digital cinema under the terms of Cinedigm’s long-term agreements with all the major studios.  This Cinedigm-financed conversion will deploy 79 Cinedigm-Certified™ screens across seven sites, with completion expected by summer 2012. 

Zyacorp is a member of the Cinema Buying Group, a buying program formed by the independent theatre operators of the National Association of Theatre Owners (NATO) to find cost-effective solutions for converting theatres from film to digital projection.  Cinedigm is the digital cinema integrator partner for the CBG.

The transition from 35mm film projection, which has been used for 110 years, to digital projection systems is a worldwide motion picture industry effort and the costs to deploy this new technology are covered primarily through the payment of virtual print fees (VPF) from studios to implementation companies. Cinedigm's Digital Cinema division facilitates the funding, installation and operations support, along with ongoing VPF administration, for the company's digital cinema rollout plans. Cinedigm has signed long-term VPF agreements with all the major studios and interim agreements with over a hundred of independent distributors.

“We strive to provide our customers a state-of-the-art family entertainment venue, and our commitment to digital cinema further demonstrates this promise,” said Mark Adam, president, Zyacorp. “We are confident in the outstanding service that Cinedigm provides, and we look forward to a mutually beneficial relationship.”

 “Cinemagic has been very diligent in evaluating their digital cinema options, and we’re thrilled we were able to create a solution that works for them,” said Gary Loffredo, Cinedigm’s President of Digital Cinema Services.  “We look forward to sharing the benefits of digital cinema with Mark and his team.”

Cinedigm offers a new business model to exhibitors by enabling theaters to present engaging alternative programming including live 2D and 3D sporting events and concerts, shorts, cartoons, live Q&A’s, as well as branded entertainment.  Recent releases by Cinedigm include the first ever live 3D broadcast of a UFC bout on February 4, 2012, the ground-breaking, worldwide LIVE 3D broadcast of the FIFA World Cup Championship, the BCS Championship in LIVE 3D, the Dave Matthews Band 3D concerts, and the sold out 3D PHISH concerts. Cinedigm has also released the KIDTOONS series for the past six years, a weekly family friendly matinee series that runs in over 150 theatres across the country.

In the combined Phase One and Phase Two digital cinema deployment program, Cinedigm has:
·   Signed 10,201 screens overall
·   Installed 8,977 digital screens
·   Signed digital screens deals with 191 exhibitors 

Cinedigm digital theatres are fully networked, turnkey systems – simple and cost-efficient to operate.
* These figures do not include IMAX screens.

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 Zyacorp Entertainment: Zyacorp Entertainment is the fastest growing independent theatre chain in the Northeast, and operates its Cinemagic stadium theaters in Saco, Maine; South Portland, ME; Westbrook, Maine; Salisbury, Massachusetts; Hooksett, New Hampshire; and Merrimack, New Hampshire. They are planning to open a new eight-screen complex in Sturbridge, Massachusetts, this summer.   With the introduction of digital projection and their existing digital IMAX theatres in New Hampshire and Maine, Zyacorp maintains its reputation in all of its markets as the leader in technology and presentation. Zyacorp is a member of the Cinema Buying Group,  the National Association of Theatre Owners (NATO) and the Theatre Owners of New England (TONE). Zyacorp Entertainment Directory page

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