Iwerks Entertainment acquires advanced new technology for large format theatre expansion

Business Wire, March 5, 1997

BURBANK, Calif.--(BUSINESS WIRE)--March 5, 1997--

Pioneer Technology Corp.'s proprietary Linear-Loop(R)

technology viewed as major projection technology advance

Iwerks Entertainment (Nasdaq/NMS:IWRK), one of the world's leading creators of multi-sensory entertainment attractions, Wednesday announced it has acquired Burbank-based Pioneer Technology Corp. and related entities and technologies, including patent rights, for an undisclosed amount of cash and stock.

Pioneer creates unique specialty and large-format projection technologies, including an 8-perforation 70mm projector that uses a proprietary Linear-Loop(R) process. "The Pioneer Linear-Loop (R) projector offers enhanced image stability, ease of operation, and more operational flexibility than other large-format projection systems on the market today," according to Don Iwerks, vice chairman of Iwerks Entertainment.

"Our acquisition of Pioneer underscores our commitment to large-format entertainment and projection systems," said Roy A. Wright, Iwerks president and CEO. "This proprietary new technology, combined with our strong attractions expertise, will help us offer a new, economically viable alternative for the large-format theatre operators and firmly establish Iwerks as a leading provider to this marketplace."

The Pioneer technology, which the company believes represents one of the most significant advancement in film handling and projection technology in the last 30 years, is a highly stable, pin-registered, non-friction format in which the film is literally transported on a column of air.

The Linear-Loop (R) refers to the fact that the air column is used to form a loop in the film as it runs vertically through the projector and then is pressed flat on registration pins over the shutter aperture as light is projected through each frame. "This is a very sophisticated technology and we are pleased that it has successfully operated in several sites worldwide," said Linear-Loop (R) creator Ron Schmidt.

"The Linear-Loop (R) technology has been very successful at a number of sites, including Destination Cinema's Hearst Castle theatre in San Simeon," said Pioneer's President Don Stults. "We are thrilled to be a part of the Iwerks team and look forward to helping Iwerks increase its market share in this important arena."

"With the rapid growth in interest in large-format theatres, this technology has the potential of making a significant positive impact on the financial model faced by large screen theatre operators," continued Wright. "The Linear-Loop (R) projector projects a large-format image and offers performance characteristics similar to the larger and much more expensive "rolling loop" projectors currently made by Iwerks and Imax, but at a much more affordable level."

The Pioneer system has less wear and tear on the film prints than does claw and pulldown geneva systems in use virtually everywhere else. In addition, the positive air pressure on the film path keeps the projector cleaner and thus it requires significantly less routine maintenance and cleaning than normal projectors.

Because of the ease of transport, not only does the film move forward smoothly through the projector for viewing but it also can be rewound through the gate at more than three times normal speed, to allow for automatic rewind and reset of the projector.

While this new technology can be used as a replacement component for a number of Iwerks' current products, the company views its largest potential impact will come from the growth of its worldwide large-format theatre network, and does not anticipate immediate incremental revenue.

Burbank-based Iwerks Entertainment is one of the world's leading producers of high-tech, multi-sensory experiences such as ride simulation, 2D and 3D giant screen theatres, and other immersive attractions. Serving entertainment, information, and consumer marketing providers, Iwerks experiences can be found worldwide at prestigious locations such as Time Warner/Six Flags Theme Parks, Viacom's Block Party, Hoyts Cinemas, NASA/Houston Space Center, The Orlando Science Center, and Dave & Buster's. For complete information access www.iwerks.com.

This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the limited protection provided by U.S. patent laws, advances in competing technologies, the company's ability to successfully market and sell the acquired technologies, customer acceptance of the acquired technologies in the marketplace, the effects of competition and other factors detailed in the company's Securities and Exchange Commission filings. -0- Note to editors: For this company's past news releases go to http://www.businesswire.com/cnn/iwrk.htm .