CinemaNow and Cflix Licensing Deal Delivers Video-On-Demand To College Students; CinemaNow to Make Feature Films Available on Duke University's Local Area Network

Business Wire, April 18, 2002

Business Editors & High-Tech Writers

MARINA DEL REY, Calif.--(BUSINESS WIRE)--April 18, 2002

CinemaNow, Inc., the leader in Internet-based video-on-demand distribution and technology, today announced a content licensing deal with Cflix, Inc., a broadband entertainment network dedicated to the college market, to bring CinemaNow content to Duke University students. As part of the agreement, CinemaNow and Cflix plan to examine the online behavior of the college student demographic as well as their demand for downloadable and streaming Internet-based film content. Additional college campuses are expected to roll out in fall of 2002.

As part of a trial at Duke University, Cflix will host a CinemaNow featured channel offering select films from CinemaNow's vast content library. CinemaNow films will be made available to Duke University's closed LAN network of end-users at high-speed access rates of 700K. Because Duke's own internal network will deliver the content, end users will receive the highest picture quality available.

"College students are historically the first adopters of new technologies. Our partnership with CinemaNow enables Cflix to provide a compelling content offering to an audience already inclined to stream entertainment from the Internet," said Matt Edelman, Cflix's acting executive vice president of content. Brett Goldberg, one of Cflix's founders, added, "We are thrilled to be working with CinemaNow, as their experience, content and proven technology are a key component of our strategy to provide a legitimate Internet-based entertainment destination for college students."

"The college market has always been a key demographic for CinemaNow because of their access to broadband connections and their interest in pursuing breakthrough distribution methods," said Bruce Eisen, executive vice president of CinemaNow.

Added Peter Block, president of Lions Gate Home Entertainment, "It is very exciting for Lions Gate and especially for me personally to be launching this service at Duke, my alma mater."

PatchBay(TM), CinemaNow's proprietary video-on-demand technology solution, will handle several aspects of the distribution for Cflix, including digital and territorial rights protection, user profiling, comprehensive pay-per-view and subscription services and detailed report generation.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com), the leader in Internet video-on-demand distribution and technology, currently delivers nearly two million video streams to approximately one 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 developed 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 (AMEX and TSE: LGF), a leading creator, producer and distributor of filmed entertainment worldwide.

About Cflix

Cflix, Inc. (www.cflix.com) is a private company in the initial phase of building an Internet-based network to deliver entertainment content to college audiences in a secure and targeted manner. By offering film, television and new media content solely on the Ethernet at a Cflix affiliated school, Cflix's technology solution provides the highest possible quality video to its subscribers. Cflix is positioned to emerge as a leader in IP-based content delivery by aggregating a compelling mix of content that will appeal to an audience already consuming entertainment through their PCs.

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