MORRISTOWN, N.J.—Oct 3, 2005
Access Integrated Technologies, Christie Commit For The Long-Term in Groundbreaking Digital Cinema Framework Agreement
Reached new milestone as Christie/AIX Subsidiary Orders Another 100 Units From Christie Digital Systems USA Inc.
Spurred by positive industry acceptance of
their groundbreaking digital cinema funding plan, Access Integrated
Technologies, Inc. ("AccessIT") (AMEX:AIX) and Christie Digital Systems USA,
Inc. ("Christie") today announced a strengthened commitment to their Digital
Cinema Framework, removing provisions that had originally allowed either party
to terminate their agreement by September 30. The companies viewed the move as
an expression of their long-term pledge to the innovative template they designed
for funding a nationwide rollout of theater-based digital systems.
The modification reaffirms the AccessIT subsidiary, Christie/AIX's plan to
ultimately purchase and install 4,000 Christie DLP Cinema(r) projection systems
and related hardware. The first 100 systems covered by the agreement were
ordered from projector manufacturer Christie on August 5, 2005. The second 100
were ordered last week, successfully reaching a milestone in the planned
deployment of 150 systems by December 31, 2005.
Last month, Walt Disney Studios' Buena Vista Pictures Distribution arm
contracted with Christie/AIX to provide up to 100% of all future feature film
releases for digital distribution to those 4,000 screens and pay Christie/AIX a
virtual print fee for each digital movie displayed on Christie/AIX's systems.
Commenting on today's announcement, AccessIT Chairman and CEO Bud Mayo said:
"This amendment underscores both parties' commitment to the rollout plan and our
mutual confidence in its success. We remain fully committed to our timeline and
confident that we will begin deployments on schedule."
Jack Kline, President and COO of Christie Digital Systems USA, Inc., added: "We
are making great strides with distribution and exhibition and no longer need a
contingency clause in our agreement. We now know it is truly going to happen.
All the pieces of the puzzle are falling into place. We are making significant
progress in negotiating contractual commitments with the top studios and expect
the completion of exhibition agreements very soon. There is no doubt that
digital cinema is finally shifting into high gear, driven by a practical,
workable solution that meets the needs of exhibitors and studios alike."
Christie/AIX is currently in negotiations with multiple major studios for
similar commitments and expects formal announcements to be made shortly.
Elsewhere, Christie/AIX is also continuing high-level negotiations for
installation of digital systems with several regional and national exhibition
chains to participate in its deployment plan.