O2 to Launch CinemaElectric Mobile Multimedia in UK and Ireland

Business Wire, Feb 13, 2004

Business Editors

HOLLYWOOD, Calif.--(BUSINESS WIRE)--Feb. 13, 2004

CinemaElectric, Inc. (OTCBB:CINM) announced the launch of mobile multimedia content offerings in the UK and Ireland via leading mobile operator O2.

The companies have signed a comprehensive agreement to distribute CinemaElectric's PocketCinema(TM) multimedia content to O2 mobile subscribers via the O2 ACTIVE service in the UK and Ireland. The content offerings will include video, multimedia message service (MMS) content, applications and graphics customized for Nokia, Sony Ericsson, Samsung, Seimens, Motorola and Panasonic color mobile phones, as well as the O2 X1. The deal also includes content exclusive to O2 in the UK and Ireland. The O2 ACTIVE service offers mobile data entertainment such as games, graphics, video and ringtones. Based on WAP page impressions, O2 records the highest usage of any UK operator.

"CinemaElectric is proud to be providing our advanced mobile content to O2," said CinemaElectric founder and CEO James F. Robinson. "O2 has shown its leadership in data services by bringing television and sports brands to the mobile space. Our goal is to work together with O2 to provide an enhanced multimedia entertainment experience for O2 ACTIVE subscribers."

According to EMC, 100 million, or 7.7% of all global mobile subscribers can currently access multimedia services and applications. This represents growth of 14% since June 2003 and has been made possible by the robust sales of color mobile phones and new high-speed wireless networks. Mobile entertainment products have already proven to be hugely profitable. Tens of millions of mobile users regularly download ringtones and graphics to their mobile phones globally, at prices ranging from $0.30 to $5.00 per download. Reuters estimates global ringtone royalties between $750 million and $1 billion in 2002, from total revenues of $4 billion. Multimedia (graphics & video) revenues are expected to pass ringtone revenues by 2007.

About CinemaElectric

CinemaElectric is a Hollywood-based producer of mobile multimedia and value-added services and is believed to own the world's largest library of formatted multimedia content for mobile devices. The Company produces original and branded content including video, multimedia applications, graphics and "true-tone" ringers, currently being distributed in Europe, North and South America and the Pacific Rim.

Website: http://www.CinemaElectric.com

About O2

O2 aims to enrich customers' lives by enabling them to get the most from their mobile. As a leading provider of mobile services to consumers and businesses in the UK, O2 offers a range of services including text, media messaging and mobile video. O2 is the UK market leader in mobile data services with approximately 12 million UK customers.

Website: http://www.mmo2.com

This press release may contain forward-looking statements, including the Company's beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. In addition, the factors underlying Company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given.