CinemaNow Signs Warner Home Video to Deliver Downloadable Movies-On-Demand; CinemaNow to Make Warner Bros. Pictures Films Available for Download via the CinemaNow Web Site

Business Wire, Sept 9, 2002

Business/Entertainment Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Sept. 9, 2002

CinemaNow, Inc., a leader in IP-based video-on-demand distribution and technology, today announced it has signed a licensing agreement with Warner Home Video, to deliver selected first-run pay-per-view and library titles on-demand via the CinemaNow Web site, www.cinemanow.com. As part of the agreement, CinemaNow will offer the films in a download format, marking the first time that Warner Bros. Pictures' films will be made available for secure, protected download over the public Internet.

Films such as "Harry Potter and the Sorcerer's Stone" will appear on CinemaNow's site during its traditional pay-per-view window and be priced at $3.99 for 24-hour access. Additional titles from the Warner Home Video library will also be made available, ranging from the Alfred Hitchcock classic "Dial M for Murder" to Tim Burton's "Mars Attacks" starring Jack Nicholson, and will be offered for $2.99 for the same viewing period.

"Making major studio content available to download in a secure and legal manner marks a tremendous leap forward for online distribution," said Bruce Eisen, EVP of CinemaNow. "We are excited to add the quality films of Warner Bros. Pictures to our growing list of content providers. This is an important step to begin assessing both the demand and revenue platforms from this emerging business."

PatchBay(TM), CinemaNow's proprietary video-on-demand technology solution, already employed for online content distribution throughout the world, will facilitate all aspects of the films distribution. These include digital and territorial rights protection, user profiling, comprehensive pay-per-view services, and detailed report generation.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com), the leader in IP-based 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).

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