CinemaNow and MGM Partner to Test Internet-based Video-On-Demand; Select MGM Titles to be Made Available on CinemaNow's Web Site Beginning In February

Business Wire, Feb 20, 2002

Business/Entertainment Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Feb. 20, 2002

CinemaNow, Inc., a leader in Internet video-on-demand distribution and technology, today announced the company has partnered with MGM Home Entertainment, a subsidiary of Metro-Goldwyn-Mayer, Inc. (NYSE:MGM), to show select MGM titles in an exploration of consumer behavior and demand for Internet-based video-on-demand film distribution of MGM content. As part of the agreement, CinemaNow will offer select MGM titles on its Web site, www.cinemanow.com, in both streaming and downloadable formats.

The first titles to be made available will be "What's the Worst That Could Happen?" starring Danny DeVito and Martin Lawrence and "The Man In The Iron Mask" starring Leonardo DiCaprio. "What's the Worst That Could Happen?" will launch on CinemaNow.com on February 20th, the same day it becomes available in its traditional pay-per-view window. "The Man In The Iron Mask," which has grossed over $56 million, will also premiere on February 20th as a test of consumer response to previously released pictures from MGM's vast library of titles. As part of the agreement, CinemaNow will show the films at various price points and aggregate data regarding user purchasing patterns with respect to the films.

"MGM is committed to building new audiences for our new and classic films," said David Bishop, president and COO -- MGM Home Entertainment Group. "A test with CinemaNow allows us to explore how consumers are using Internet V.O.D. and helps us prepare for a more competitive future."

Mark Amin, Chairman of CinemaNow, said, "Making major-studio content readily available in a secure and legal manner is a significant milestone for online film distribution. With this agreement, MGM is taking the lead in creating the future of digitally-delivered movies."

Added Curt Marvis, CEO of CinemaNow, "For over two years we have been creating our PatchBay(TM) technology, which enables us to securely deliver content and effectively manage our video-on-demand site. We are thrilled that MGM is working with us to deliver their films to our audience of over one million users."

PatchBay(TM), CinemaNow's proprietary video-on-demand technology solution, already employed for online content distribution throughout the world, will facilitate all aspects of this pilot distribution program.

As part of the initiative, PatchBay(TM) will manage the pay-per-view transaction process at the various price points, along with digital and territorial rights protection, allowing control of how and where specific films are shown. In addition, PatchBay(TM) will provide comprehensive and detailed reporting on the number of purchases at each price point, streaming bit rates selected or number of downloads, length of viewing, referring sites for the users, success of on-site promotions, and other key behavior patterns of both users and purchasers. This will allow MGM and CinemaNow to better understand the audience accessing films online, as well as provide statistically backed information in determining how to best present their content for future Web-based video-on-demand endeavors.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com), the leader in Internet video-on-demand distribution and technology, currently delivers 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 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:LGF).

About MGM

MGM Home Entertainment controls the home video, DVD and video-on-demand rights to the largest modern library of filmed entertainment in the world. The Company manages worldwide home video, DVD and video-on-demand distribution rights to United Artists and current Metro-Goldwyn-Mayer theatrical releases, as well as titles from Orion, Goldwyn, and PolyGram libraries, totaling more than 4,100 films. For more information about MGM Home Entertainment, its products, and services, access MGM online at http://www.mgmhomevideo.com.

All product and company names herein may be trademarks of their respective owners.