CinemaNow and Chunghwa Telecom Announce Licensing Deal To Expand Video-On-Demand Offerings in Taiwan; CinemaNow to Provide Secure Online Film Distribution

Business Wire, March 12, 2002

Business Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--March 12, 2002

CinemaNow, Inc., the leading video-on-demand distributor of feature films over the Internet, today announced a content licensing deal with Chunghwa Telecom, Taiwan's largest telecommunications provider. Chunghwa will offer CinemaNow's video-on-demand services in Taiwan via Chunghwa's VOD technology platform and online property, hiChannel (www.hichannel.com.tw). The Web site, which offers video-on-demand content, features various titles from CinemaNow's vast library of films.

"As the leading broadband provider in Taiwan, we are excited about the opportunity to offer a wide selection of U.S. movies on-demand to our growing audience," said Yen-Sung Lee, president of Chunghwa Telecom Communications Business Group. "CinemaNow, with their robust content and technology, allows companies like ours to immediately take advantage of the burgeoning video-on-demand business, resulting in more options for our customer base."

"As the recently shuttered Movies88.com Web site has shown, there is significant interest in this type of film distribution," said Bruce David Eisen, CinemaNow's executive vice president. "We believe that today's agreement with Chunghwa Telecom further validates our company as a leading distributor of licensed, fully secure online American film content throughout Asia."

PatchBay(TM), CinemaNow's proprietary video-on-demand technology solution, will handle several aspects of the distribution of the films provided by CinemaNow to hiChannel 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 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 and TSE: LGF), a leading creator, producer and distributor of filmed entertainment.

About Chunghwa Telecom

Chunghwa Telecom (www.cht.com.tw) is the largest and leading integrated telecommunication services provider in Taiwan, with a full spectrum of service offerings ranging from fixed-line and wireless to Internet & Data services. In January 2002 Chunghwa Telecom announced that it had reached ADSL broadband users beyond 1 million. Chunghwa Telecom Co. is listed in the Taiwan Stock Exchange (TSE: 2412). hiChannel (www.hichannel.com.tw) is the video-on-demand distributing site of Chunghwa Telecom and is now delivering 3 million views per month.

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