MORRISTOWN, N.J.—Nov 7, 2007
Access Integrated Technologies Announces Plans For New Digital Cinema Deployment Plan Targeting 10,000 Screens
Three-Year Plan Intended to Launch in First Quarter of 2008
Further solidifying its global leadership in Digital Cinema, Access Integrated Technologies, Inc. (“AccessIT”) (NASDAQ: AIXD) today announced its intent to provide up to an additional 10,000 networked Digital Cinema systems to exhibitors across the United States and Canada. The Company has reached substantial agreement with several of the major movie distributors who fully supported its initial “Phase One” deployment of close to 3,750 screens, completed last month. Agreements are structured so they may be amended to international deployment as well. AccessIT also is in active negotiations with several exhibition chains that were ready to commit to “Phase One” but were unable to participate due to timing. This “Phase Two” deployment is anticipated to begin in the first quarter of 2008 and to continue for three years. While AccessIT has not yet executed final agreements, announcements regarding studio and exhibitor signings are expected shortly.
AccessIT’s new plan will build on the valued relationships established with Christie USA and Doremi Labs Inc. both domestically and internationally while tapping into the substantial additional resources of other interested vendors. Utilizing AccessIT’s unique vendor neutral software and systems architecture will aid AccessIT in providing approved choices of equipment for each theatre at the best possible terms. AccessIT has announced to potential vendors that it will entertain proposals for inclusion in the plan and anticipates selecting only those who meet AccessIT’s high standards of performance, reliability and service.
As with its earlier deployment, this plan utilizes a “Virtual Print Fee” or VPF model and is substantially the same as the one announced by AccessIT with the industry in June 2005 and commenced in November of that year. This innovative template has been used to financially support the installation of networked digital cinema systems to more than 10 percent of screens in the United States.
“We look forward to leveraging our proven technologies and experience in Phase Two,” said Bud Mayo, Chairman and CEO of AccessIT. “We anticipate our success, equity investment and cash flows in Phase One, as well as a proven VPF model, will assist us in securing lower cost debt under more reasonable terms. Our goal is to minimize or eliminate any further equity investment by AccessIT. While we are mindful of the substantial amount of work left to achieve our goals, we are the only company that can honestly say ‘you can count on us, we’ve done this before’ to distributors, vendors and exhibitors alike.”
“The seamless integration of our software and a growing list of hardware partners should allow us to accelerate our installations in direct proportion to our exhibitor demand and preferences,” said Chuck Goldwater, President of AccessIT’s Media Services Group. “Our pipeline of interested exhibitors is extensive, and we expect to be adding many of them to our plan in the coming months.”