Arts Alliance Media Secures 43 Million Euro Financing and Partnership With Arqiva for Conversion of European Cinemas to Digital, Satellite and 3D

Arts Alliance Media Secures 43 Million Euro Financing and Partnership With Arqiva for Conversion of European Cinemas to Digital, Satellite and 3D

LONDON, December 11/PRNewswire/ -- Arts Alliance Media (AAM), Europe's leading provider of digital cinema
technology, deployment and content today announced that it has signed
agreements for 43 million euros of funding from pan-European services company
Econocom and various private investors, together with a long term strategic
partnership agreement with Arqiva Satellite & Media for the satellite
distribution of films and alternative content live events into European
cinemas.

Econocom Financial Services, will provide financing of 20 million euros
for the purchase of equipment to complete the Circuit George Raymond's (CGR
Cinémas) digital cinema deployment in France. CGR Cinémas, based in La
Rochelle, have already installed 126 digital screens to date via its virtual
print fee-based rollout agreement with AAM and is aiming to complete the
digital conversion of 100% of the circuit's 400 screens by Spring 2009. This
confirms CGR's position as the European leader of digital cinema roll-out.
The CGR deployment will complete in time to play next year's highly
anticipated 3D movie releases, such as My Bloody Valentine (Lionsgate),
Monsters vs. Aliens (Dreamworks), Up (Pixar/Disney), Ice Age 3 (Twentieth
Century Fox), Planet 51 (Sony Pictures), Toy Story 3D (Pixar/Disney) and
Avatar (Twentieth Century Fox). Currently, there are thirteen 3D movies
scheduled for theatrical release in 2009.

The additional 23 million euros (of the total 43m) has been raised from
private investors and will fund the continued growth of AAM, with particular
focus on building up the group's infrastructure and support network for its
European digital cinema deployment business, as well as developing new and
emerging revenue streams. The new investors will have a minority shareholding
in the AAM group.

Howard Kiedaisch, AAM's Chief Executive Officer said, "We are delighted
to announce this fantastic news, especially in today's challenging economic
climate. The significant investments and new partnerships with Econocom and
Arqiva are a tremendous boost, and strengthen us to forge ahead with building
the largest digital cinema delivery network in Europe, to which we can
deliver digital content - films, alternative programming and live events."

Christian Levie, Chief Funding Officer, Econocom, said, "Digital cinema
is transforming the moviegoing experience and taking film exhibition and
distribution into a new and exciting future. We are proud to be a part of
this revolution and to be joining forces with Arts Alliance Media, a proven
leader in this business. The digitisation of CGR's screens in France is the
first step for us and we look forward to a long and successful partnership
with AAM throughout Europe."

Jocelyn Bouyssy, General Manager of CGR Cinémas, added, "We are delighted
to see that, in the current market, the VPF model is clearly validated and
supported by financial partners. We hope that the completion of our digital
roll-out in Spring 2009 will convince all French distributors to jump on
board and seize the tremendous opportunities of digital cinema and 3D."

Chantal De Vrieze, Country Manager Belux, Econocom, said, "Econocom
Financial Services was chosen for its flexible approach towards the digital
cinema roll out needs and VPF model as well as for its ability to find an
appropriate financial structure in those turbulent markets."

Barrie Woolston, Commercial Director at Arqiva Satellite & Media, added,
"We're thrilled to partner with Arts Alliance Media and move into the cinema
business, which is going through a huge digital transformation. Satellite
transmission of films to cinemas is the future of film distribution and
exhibition and our extensive international satellite infrastructure together
with AAM's proven digital cinema expertise is a strong proposition for
European cinema exhibition and distribution."

Patrick Foley, AAM's Chief Financial Officer, concluded, "To be able to
attract investors and partners of this calibre further verifies our digital
cinema business and will open up great opportunities for AAM."

The Arqiva/AAM partnership agreement sets out an action plan for the
development of a content delivery platform and network for film distribution
via secure satellite. Extensive research, development and testing has already
been completed. In October 2008, AAM and Arqiva successfully distributed the
2008 Palme d'Or winning film, Entre Les Murs, to CGR Cinema's megaplex site
in Villenave d'Ornon, Bordeaux, France. The full digital cinema package, a
216 GB file, was transmitted via the Intelsat 905 satellite direct to the
library server at the cinema, without any operator intervention. Arqiva and
AAM have also been working together recently on the live HD transmissions of
the opera and ballet performances from the Royal Opera House and other
leading venues to cinemas across Europe.

To date, AAM has a European footprint of 402 installed and operated
digital cinema screens and its in-house digital cinema lab has mastered over
422 digital cinema titles. AAM was the first digital cinema provider in
Europe to sign up studios and exhibitors to its digital cinema rollout plan.
AAM has digital cinema deployment agreements, utilising the virtual print fee
model, with Twentieth Century Fox, Universal Pictures International,
Paramount Pictures International, Sony Pictures Releasing International and
Walt Disney Studios International and various independent film distributors.
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).

Widespread commercial digital cinema rollout across Europe 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 - premium ticket shows
and alternative content, notably 3D films and live satellite events (opera,
concerts, sports, etc), as well as vastly reduced print production and
logistics costs.

Notes to Editors:

About Arts Alliance Media:

Arts Alliance Media, based in London, Paris and Amsterdam, is Europe's
leading provider of digital film distribution services, dedicated to building
a European digital cinema network. 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 also sources, manages and actively promotes 'Alternative
Content' programming for cinemas. AAM was founded in 2003 by Thomas C. Hoegh
who serves as Chairman of the board in the UK. Further information can be
found at http://www.artsalliancemedia.com

About Econocom:

With revenue of EUR700 million in 2007 and 2,300 employees, Econocom is a
European services company specialized in the management of IT and telecom
resources for businesses. Econocom's service offerings include consulting, IT
products and financing solutions, and managed services (outsourcing and
maintenance). Econocom Group is a member of Euronext's Next Economy index and
is quoted on the Eurolist market (compartment B) of Euronext Brussels. For
further information: http://www.econocom.com

About Arqiva:

Arqiva operates at the heart of the broadcast and mobile communications
industry and is at the forefront of network solutions and services in an
increasingly digital world. The company provides much of the infrastructure
behind television, radio and wireless communications in the UK and has a
growing presence in Ireland, mainland Europe and the USA. There are three
operating divisions - Terrestrial Broadcast, Satellite & Media and Wireless
Access. Arqiva has its headquarters near Winchester and other major UK
offices in London, Warwick, Buckinghamshire and Yorkshire. The company is
owned by a consortium of investors led by Macquarie Communications
Infrastructure Group. Major customers include the BBC, ITV, Channel 4, Five,
BSkyB, Classic FM, the five UK mobile operators, the RNLI and the
Metropolitan Police.

http://www.arqiva.com

Source: Arts Alliance Media (AAM)

For information, please contact: Arts Alliance Media: Gemma Richardson, gemma@artsalliancemedia.com, Tel: +44(0)7920-236299; Econocom: Rafaël Tirmarche/Quadrant Communications, rafael@quadrantcommunications.be, Tel: +32(0)9-265-0256; Arqiva: Bruce Randall, press.office@arqiva.com, Tel: +44(0)1962-822582; CGR Cinémas: Jocelyn Bouyssy, Tel: +33(0)5-46-44-01-76

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