Gaiam Acquires Majority Interest in Spiritual Cinema Circle

Gaiam Acquires Majority Interest in Spiritual Cinema Circle

Spiritual Films DVD Club Gains Access to 7 Million Potential Customers

BROOMFIELD, Colo., Aug. 2 /PRNewswire-FirstCall/ -- Gaiam, Inc. (NASDAQ:GAIA), a branded lifestyle-media company catering to people who value personal development, natural health and inspirational media, announced today that it has acquired an approximately 63% ownership interest in Cinema Circle, Inc. for $6.9 million in cash.

Cinema Circle, Inc. is the parent company of Spiritual Cinema Circle, a subscription-based DVD film club designed to connect "spiritual" moviegoers around the world founded in 2004 by Hollywood veteran producer, Stephen Simon (What Dreams May Come, Somewhere In Time, Bill & Ted's Excellent Adventures, Conversations With God) along with bestselling authors Kathlyn and Gay Hendricks.

The Spiritual Cinema Circle delivers films that seek to touch members' hearts, expand their minds and stir their souls without the violence, explicit language or sexual content that characterize mainstream Hollywood releases today. Circle subscribers receive each month a DVD that is theirs to keep, containing spiritual films (feature, documentary and shorts). According to USA Today, 60 million Americans consider themselves "spiritual."

"We are very pleased to partner with Spiritual Cinema Circle, a media organization with heart, whose vision and products will expand Gaiam's subscription based offerings," said Jirka Rysavy, Gaiam's Chairman & CEO. "The transaction fits perfectly with Gaiam's growth strategy to leverage our seven million customer base to expand our media subscription base products."

"Gaiam is an established player in the lifestyle-media market and we are thrilled to join forces to bring our unique spiritual experience to millions of global movie lovers," commented Stephen Simon, Spiritual Cinema Circle's founder. "This partnership provides us access to seven million direct customers, 20 million catalogs and 60,000 retail stores and we are excited about the enormous growth opportunities lying ahead. We look forward to a long-time and productive partnership resulting in broader market recognition."

More details of the acquisition will be provided during Gaiam's second quarter conference call, which is scheduled to be held tomorrow Thursday, August 3rd.

For more information about Gaiam, please visit www.gaiam.com.

This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as "expect," "believe," "will," "should" or comparable terminology or by discussions of strategy. While Gaiam believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of new products and services, completion and integration of acquisitions, the possibility of negative economic conditions, and other risks and uncertainties included in Gaiam's filings with the Securities and Exchange Commission. Gaiam assumes no duty to update any forward-looking statements.

Source: Gaiam, Inc.

CONTACT: John Mills of Integrated Corporate Relations, Inc.,
+1-310-954-1100, jmills@icrinc.com, for Gaiam, Inc.

Web site: http://www.gaiam.com/

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