CinemaNow and Walker Asia Entertainment Strike Licensing Deal To Bring Video-On-Demand to Asia

Business Wire, Nov 8, 2001

Business Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Nov. 8, 2001

Walker Asia, backed by Kadokawa Publishing, Sumitomo Corporation,

Compudia Pte Ltd. and Infocummu Investment Pte Ltd., brings

CinemaNow Video-on-Demand to Singapore

CinemaNow Inc., the leading video-on-demand distributor of feature films over the Internet, today announced that it has licensed PatchBay(TM), the company's proprietary video-on-demand technology solution, to Walker Asia Entertainment Pte. Ltd., a newly formed entertainment company created by Kadokawa Publishing, Sumitomo Corporation, Compudia Pte Ltd., Infocummu Investment Pte Ltd. and advertising agency Dentsu, Inc.

The agreement also includes a content syndication deal.

Walker Asia will offer CinemaNow's video-on-demand services initially in Singapore, with additional sites expected to launch throughout Asia as early as March 2002. Viewers will access the video-on-demand content via Walker Asia's Web site, www.walkerasia.com.sg, launching this December in Singapore. The site will use CinemaNow's PatchBay platform to manage several aspects of its Web-based video-on-demand initiatives including digital and territorial rights protection, user profiling, demographically targeted advertising, comprehensive pay-per-view and subscription services, and detailed report generation. Site content will include various titles from CinemaNow's vast library of exclusive Internet content available in the specified territories.

"We have elected to work with CinemaNow and use their PatchBay system because of the experience, content and superior technology that they provide," said Akihiko Seki, managing director of Walker Asia Entertainment. "With PatchBay's easy implementation and CinemaNow's knowledge of the online video-on-demand business, Walker Asia is now able to quickly and effectively enter this growing market space. This was a very easy choice for us."

"We are very excited to be working with such well-established partners as Kadokawa Publishing, Sumitomo Corporation and Dentsu to build a leading video-on-demand service throughout Asia," said Bruce Eisen, EVP of CinemaNow. "With 98% of all homes able to receive broadband Internet connections, Singapore represents an ideal starting ground for Pan-Asian expansion."

A key aspect of the new service will be Walker Asia's ability to fully leverage the synergies of its strategic investors. Kadokawa is one of Japan's largest publishers of both print and multi-media content and will provide both content and marketing outlets for the new Walker Asia venture. Currently, Kadokawa publishes the successful Walker line of magazines in Japan, Taiwan and other Asian territories and will be expanding to Singapore, China and Korea. Walker Asia will also receive content and have access to additional distribution channels through Sumitomo Corporation, one of the world's largest trading conglomerates, which operates CATV, satellite TV and various Internet businesses in Japan. Furthermore, Walker Asia will leverage its relationship with new partner Dentsu Inc., the world's largest advertising agency, which will assist in attracting online advertisers.

The Infocomm Development Authority of Singapore (IDA Singapore) will also be assisting Walker Asia and CinemaNow with the deployment of this service in conjunction with their efforts to speed up the adoption of broadband services and applications. In addition, Walker Asia will be working extensively with NTT Singapore, a wholly owned subsidiary of telecommunications leader NTT Communications, to redistribute its content through the NTT Singapore network, and in conjunction with their efforts to promote broadband expansion and establish Singapore as an Asian-Pacific communications hub.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com), is the leading video-on-demand distributor of feature films over the Internet currently delivering nearly 2 million video streams to approximately 1 million users per month. The Company makes films available via its Web site in both streaming and download formats and on a pay-per-view, subscription, and ad-supported basis. CinemaNow has also engineered PatchBay(TM), a proprietary video-on-demand content distribution and management system which runs the CinemaNow Web site and is available as a licensable technology solution. CinemaNow is majority owned by Lions Gate Entertainment (NASD:LGF).

About Walker Asia Entertainment

A Singapore based joint venture company formed by Japanese companies Kadokawa Shoten Publishing and Sumitomo Corporation, Japanese-owned Singapore firm Compudia Pte. Ltd. and Infocommu Investment Pte Ltd., Walker Asia will distribute broadband and multimedia entertainment content and services to be delivered to key Asian markets starting from December 2001. This includes the delivery of popular Hollywood movies, Japanese movies, music, animation and on-line comics as well as innovative broadband applications suitable for broadband users in Asia.

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