First European Exhibitor Goes Fully Digital: CGR Signs With Arts Alliance Media

First European Exhibitor Goes Fully Digital: CGR Signs With Arts Alliance Media

Virtual Print Fee Agreement Signed for 400 Screens in France

PARIS, November 19/PRNewswire/ -- Circuit George Raymond ("CGR Cinemas"), one of France's
largest cinema chains and Arts Alliance Media ("AAM"), Europe's leading
provider of digital distribution services, have reached an exclusive
agreement for the deployment of digital cinema in 100% of the circuit's 400
screens, throughout France. The rollout is scheduled to begin in the first
quarter of 2008, with a target of 200 screens during the first year.

This agreement signifies the highly anticipated start of a
widespread commercial rollout initiative across Europe which will enable
exhibitors, distributors and the entertainment industry at large to reap the
substantial benefits of digital cinema: consistently high quality
non-degradable prints, new programming opportunities - alternative content
and premium ticket shows, notably 3-D films and live satellite events (opera,
concerts, sports, etc), as well as vastly reduced print production and
logistics costs.

Under the conditions of the agreement, AAM will create a fully
integrated

DCI-compliant digital cinema network within the CGR Cinemas
infrastructure. The agreement requires AAM to procure, service and maintain
all digital cinema systems deployed, including projectors and servers,
central storage servers and a Theatre Management System.

CGR Cinemas is a leading and expanding cinema chain in France.
The company is well known for the success of its multiplexes in many mid-size
cities across the country, for the efficiency of its cost management and for
its profitability. By becoming the first European cinema chain to join the
AAM initiative and go fully digital, CGR Cinemas is demonstrating that it is
an innovative company, ready to embrace new technology to deliver the best
possible quality cinema experience.

This agreement between CGR Cinemas and AAM shows that the
VPF-based business model has now been fully adapted to meet the particular
requirements of the European exhibition market. The VPF business model is a
means of financing the conversion to digital cinema, where both distributor
and exhibitor contribute over time towards the total cost of the digital
projection and server equipment, funded up front by the rollout entity (AAM).
The VPF model has been proven in North America, with over 3,700 digital
screens installed to date.

AAM is the only studio-backed digital cinema rollout entity in
Europe. In June 2007, AAM signed Europe's first long term digital cinema
deployment agreements with Twentieth Century Fox and Universal Pictures
International for the conversion of close to 7000 screens, and in October,
Paramount Pictures International also committed to supporting AAM's digital
cinema rollout in Europe. AAM is in active negotiations with European
distributors and other Hollywood studios for further deals, and announcements
are expected shortly.

"We are delighted to be the first movers in the digital
transition and to enter into a new era of French and European cinema," said
Jocelyn Bouyssy, Chief Executive Officer, CGR Cinemas. "CGR Cinemas is a
forward thinking company and its ability to seize new opportunities makes it
one of the most successful chains in the French exhibition market. I would
like to thank Gwendal Auffret and AAM's technical team, the staff at CGR
Cinemas', as well as the suppliers and installers for their innovation,
creativity, skills and efficiency. This teamwork made such a historical
agreement possible and now CGR Cinemas will embark on the great adventure of
digital cinema in every screen in our circuit."

Mr. Bouyssy continued, "Starting as soon as this Christmas, we
will equip seven screens in different multiplexes across the chain, so our
customers can immediately enjoy films in 3D, which I believe will play a
major role in the future of cinema exhibition."

AAM's Chief Executive Officer Howard Kiedaisch said, "This
agreement is an epic milestone for the industry, for AAM and for audiences
Europe-wide. CGR is clearly a visionary leader in the European exhibition
community and they are seizing the enormous opportunities that digital cinema
offers to strengthen and sustain their business, as well as to revolutionize
the movie-going experience."

Gwendal Auffret, Managing Director, AAM Southern Europe added,
"We are very honoured and extremely happy to have CGR as our first exhibitor
partner. This should drastically accelerate the digitalisation of the
European distribution and exhibition industry. Leveraging all our experience
and expertise in rolling out digital cinema, coupled with our major studio
agreements, we are ready to start the transformation immediately."

AAM completed the UK Film Council digital cinema rollout of
240 screens, known as the Digital Screen Network, on April 30th, 2007. The
company is also participating in two digital cinema trials, one in the UK at
the Odeon Surrey Quays multiplex, since February 2007, and the other in
Norway, in various cinemas across the country, since April 2006. To date,
AAM's in-house digital lab has encoded over 200 digital cinema titles and
shipped over 3600 digital prints.

Notes to Editors:

About Circuit Georges Raymond:

Founded in 1974 by George Raymond, CGR Cinemas is a French exhibition
group based in La Rochelle, France. The group, initially based in the South
West of France, took advantage of the creation of multiplexes to spread to
the whole of the French territory. Today, CGR Cinemas is the third largest
exhibition chain and the first independent circuit in France with more that
16 million admissions per year. Madame Nicole Raymond and her children, Luc
and Charles Raymond, took over the group when George Raymond died. Jocelyn
Bouyssy has worked at CGR Cinemas for the last 20 years and currently serves
as Chief Executive Officer of the company. http://www.cgrcinemas.fr

About Arts Alliance Media:

Arts Alliance Media, based in London and Paris, is Europe's leading
provider of digital film distribution services, dedicated to building a
European digital network to deliver film to the cinema, to the home and
between industry players. AAM provides end-to-end digital cinema solutions
encompassing equipment selection, financing and integration, operator
training, installation and support, and content management and delivery. AAM
was founded in 2003 by Thomas C. Hoegh who serves as Chairman of the Board.

http://www.artsalliancemedia.com

Source: Arts Alliance Media

Contact Info: CGR Cinemas: Jocelyn Bouyssy, Tel : +33-(0)5-46-44-01-76. Arts Alliance Media: Virginie Gosselin virginie.gosselin@artsalliancemedia,com, Tel: +33-(0)1-42-60-88-76 Gemma Richardson, gemma@artsalliancemedia.com, Tel: +44-(0)207-751-7466, Mob: +44-(0)7920-236299

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