NBC Enterprises and Trimark Join Forces for Domestic Home Video Distribution Deal; NBC Home Video Goes Retail

Business Wire, May 10, 1999

SANTA MONICA, Calif.--(ENTERTAINMENT WIRE)--May 10, 1999--

After a very successful foray into the direct-response home-video business, NBC Enterprises is focusing on its retail market position and has chosen independent home-video distributor Trimark to launch NBC Home Video entertainment product line into retail, it was announced by Jerry Petry, executive vice president, NBC Enterprises.

The multiyear deal between Trimark Holdings (Nasdaq:TMRK) and NBC Enterprises calls for Trimark to begin a major rollout of NBC Home Video entertainment titles, which includes several NBC Big Event movies and miniseries, "Saturday Night Live" specials and special event programming.

"We began our venture into the direct-response home-video business last year, and the results were astounding," said Petry.

"As we continued to offer videos from `Saturday Night Live' and such NBC long-form projects as the recent runaway ratings champ, `The '60s,' through direct response, it had become quite clear to us that the next step in the evolution of our home-video business was to partner on the retail distribution. Trimark's reputation as one of the industry's leading independent video-distribution companies made them the ideal partner."

"Our long-range plan is to leverage NBC content across multiple distribution platforms," said Elisabeth Sami, vice president of Business Development for NBC. "We chose Trimark because they will dedicate significant, focused resources on NBC product. They believe, as we do, that there is significant consumer demand for high-quality television-based home-video product."

Said Mark Amin, Trimark's chairman and chief executive officer: "This is another strategic relationship that falls in line with the business plan we created at the beginning of fiscal 1999. Having access to the great programs NBC has to offer should enable a strengthening of our position in the fast-growing sell-through and DVD markets. We are looking forward to a strong relationship with NBC."

Trimark's executive vice president, Peter Block, added: "When Guy Stodel (Trimark's director of Acquisitions) and I first met with Elisabeth Sami and her team, we knew we had found people who understood the ever-changing marketplace and appreciated Trimark's history of creativity and sales proficiency.

"NBC has an enormous catalog of quality movies, miniseries and special television events. The outstanding quality of its programs, coupled with the quantity of its programs, is what made this deal most attractive to Trimark, and we are thrilled to be associated with such product."

The deal, which combines NBC's proven direct-marketing capabilities with the strength of Trimark's sales force, includes an option for NBC to offer Trimark titles via direct response.

Trimark Holdings is a broad-based entertainment company that acquires, produces and distributes motion pictures domestically and internationally under the Trimark Pictures banner; licenses to the broadcast industry under the Trimark Television moniker; and distributes to the domestic home-video market under the Trimark Home Video label. Through each of the company's separate entities, Trimark is the owner of nearly 600 titles.

Trimark Pictures is the distributor of all of the company's theatrical films. Trimark Pictures has released such critically acclaimed films as "Eve's Bayou," "Kama Sutra" and "Chinese Box." Upcoming releases include "Twice Upon a Yesterday," featuring up-and- coming actress Penelope Cruz; "Romance," which was directed by the renowned French director Catherine Breillat; "Joe the King," starring Val Kilmer, John Leguizamo and Ethan Hawke and directed by Frank Whaley; and the sexy film "Better Than Chocolate."

Trimark Pictures produces approximately 10 pictures per year.

Trimark Home Video is an entity of Trimark Holdings and is a leader in the home-video business. Trimark Home Video releases approximately 35 titles per year to the home-video rental market and approximately 15 titles per year to the sell-through market, and is the distributor of its DVD catalog, which now contains more than 35 titles and is expanding rapidly with the growth of DVD.

Trimark Television is an entity of Trimark Holdings that produces films specifically for usage in network and cable broadcasting. Trimark Television has produced such titles as "Trucks," which is based on a Stephen King short story and was produced for a USA cable premiere; as well as the upcoming "The Simple Life of Noah Dearborn," which will appear May 9 for CBS sweeps and features Academy Award winners Sidney Poitier and Dianne Wiest.

In February 1999, Trimark became the first motion-picture company to form a partnership for exploitation of movies via the Internet. Its deal with Broadcast.com, in which the companies exchanged equity, allows Trimark titles such as the cult classic "Leprechaun" to be streamed on the Internet and positions the company as the first studio to embrace this new entertainment medium.

NBC Home Video, a unit of NBC Enterprises, is the home-video packager and marketer of NBC-owned content. NBC Enterprises is responsible for the global distribution and exploitation of NBC-owned product, which includes foreign and domestic program syndication, strategic marketing and ancillary exploitation of owned product in merchandising, licensing, music and publishing as well as strategic production and co-production alliances and co-ventures.