Deluxe? Commences Digital Cinema Expansion Plan in Europe

Deluxe(R) Commences Digital Cinema Expansion Plan in Europe

LONDON, January 27, 2012/PRNewswire/ --

-- GBP4M investment sees Deluxe's Digital Cinema operation increase capacity
by 80%

Deluxe Entertainment Services Group Inc. today announced the expansion of its UK
Digital Cinema operation into a new purpose built facility. The GBP4M planned investment
will increase capacity by nearly 80% to meet the demand of its theatrical distribution
client base.

Over the past five years, Deluxe businesses worldwide have invested over GBP15M into
their Digital Cinema offering and are considered leaders in Europe, working with the
majority of major studios and film distribution companies. The expansion into Meard
Street, Soho, will create a custom built Digital Cinema solution which will sit along side
the film restoration centre also housed on site. The aggressive timeline will see the new
facility completed within 6 months and will include the creation of six new preview
theatres which can accommodate both film and digital formats. In addition, an advanced
CXFS SAN Infrastructure will be at the heart of the facility together with dedicated
storage for 'Babel', Deluxe's proprietary toolset for advanced 3D subtitling.

"We have been at the forefront of digital cinema for several years," says Peter
Wright, Managing Director of Deluxe's digital operations in Europe. "Our Digital Cinema
volume has increased ten-fold since we began offering the services in Europe, and this
additional investment will see a substantial increase in capacity once again. This
enhanced capacity also allows us to continue to deliver within the ever decreasing
timeframe between delivery and release."

"The growth in our digital cinema business has been extraordinary over the past three
years and this investment ensures Deluxe remains the natural partner for filmmakers and
distributors not only in the UK but across the globe as they transition from traditional
film acquisition and distribution workflows into the digital domain," says Ken Biggins,
Managing Director of Deluxe Europe. "It is an exciting time for our business as we
continue to partner with the filmmaking community and provide industry leadership and
innovation to this exciting sector," adds Biggins.

The transition of film screens to digital has now reached over 20,000 across 6300
sites in Europe, the Middle East and Africa.

About Deluxe

Deluxe Entertainment Services Group Inc., a wholly-owned subsidiary of MacAndrews &
Forbes Holdings Inc., is a leading provider of a broad range of entertainment industry
services and technologies to the worldwide entertainment industry including the Hollywood
studios, broadcast/cable/satellite providers, digital distribution, gaming as well as
content owners and creators. Services for content creation in features, television and
commercials are offered in production, post production, digital distribution, marketing
services and asset management. They include EFILM(R) and Company 3(R) digital
intermediates; post production and subtitling services; titles design and digital VFX; DVD
compression, encoding and authoring; advertising distribution and syndication services;
digital cinema services, motion picture film processing and printing; and 2D to 3D
conversioning. Post production facilities are located in North America, Europe, and
Australia. Deluxe Digital Studios offer home entertainment services in North America,
Europe and India. For more information, please visit
http://www.bydeluxe.com/ByDeluxeWeb/loginAction.do.

Source: Deluxe Entertainment Services Group Inc.

Sally Reid, +44-7801-752224, +44-20-7878-0000, sally.reid@bydeluxe.com

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