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Los Angeles—Mar 13, 2006

DCNS and BT to Launch the World's First Fully Integrated, DCI-Compatible Digital Cinema Business Solution

Digital Cinema Network Service (DCNS) and BT today announced they are launching a worldwide digital cinema solution designed to offer a complete menu of products, systems and services, including state-of-the-art theater equipment, installation and comprehensive technical support. DCNS has appointed BT as its global system integrator to develop, install and operate its digital cinema solution, which promises to revolutionize the movie industry.

According to Malcolm Ferris, President and CEO, DCNS, "We are thrilled that BT, one of the world's leading networked IT service providers, will be working with us to deliver this exciting new technology and comprehensive business solution to the global entertainment industry. The DCNS digital cinema solution will generate significant benefits to all facets of the film business, at no cost to exhibitors. Besides providing audiences with better viewing experiences and options, the enabling technologies delivered by DCNS will also serve as catalysts to help filmmakers and production companies eliminate the limitations of 35mm film, while providing them with broad access to standards-based, affordable digital delivery

Chuck Pol, President, BT Americas, added: "We are excited to be selected as the system integrator by DCNS, making it possible to deliver their ground- breaking digital cinematic solution to theaters. This is another example of the innovative ways BT is improving technologies, business processes and, in this case, the quality and global accessibility of digital distribution."

DCNS said they selected BT as the global systems integrator because of their expertise in building, managing and deploying complex networks and IP hardware systems, and their vast experience running satellite delivery networks. BT also has the required strategic relationships and experienced resources for delivering such network-centric solutions.

The project has been in development for over four years. DCNS' second generation, patent-pending digital cinema business method provides for consistent implementation of the DCI specifications and achieves all stated objectives for digital cinema from NATO and the MPAA. Fully scalable, the DCNS solution will be the first to provide secure "point and click" satellite delivery of DCI-compatible films, remote technical support and monitoring, diagnosis and preventive maintenance capabilities.

In another unique feature, the DCNS solution will also present DCI- compatible films utilizing all of the leading high-quality, high-resolution digital cinema projection systems available from Sony, NEC, Barco, and Christie. This completely integrated digital cinema solution will also support 3-D, pre-show advertising, trailers and live entertainment events.

DCNS' comprehensive capabilities will be demonstrated later this year in four multiplex theater locations in North America in joint efforts with BT, vendor technology suppliers and customers, as the first step of the conversion of an initial 3500 screens to digital technology, to be followed by full global deployment.


About Digital Cinema Network Service: DCNS was founded in 2000 by Malcolm Ferris as Cinematica and is headquartered in Los Angeles and London. DCNS is a technology, business integration and licensing company that provides business models, methods and solutions to convert the existing analog (35mm) production, distribution and exhibition business to digital. The Company helps convert, finance, maintain, improve and upgrade every aspect of the digital Network and infrastructure. Comprised of experienced technology, network services, film distribution and exhibition executives, the DCNS team provides the entertainment industry with a consistently reliable digital cinema Network presented on demand as a utility system and service. As a utility-based Network, DCNS business solutions can utilize all workable and DCI-compliant equipment available, providing maximum flexibility to the exhibition community. The Company’s capabilities cover the entire digital cinema value chain including engineering-level technology and partnerships, equipment finance, infrastructure, services and end users. Digital Cinema Network Service Directory page About British Telecommunications plc: BT is one of the world's leading providers of communications solutions and services operating in more than 160 Countries. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale. In the year ended 31 March 2005, BT Group's revenue was 18,623 million Pounds Sterling with profit before taxation of 2,354 million Pounds. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc Directory page

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