Cinequest Online Debuts World's First Destination to Bring Full-Length, DVD-Quality Feature Films to Fans Worldwide

Business Wire, March 3, 2004

Entertainment Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--March 3, 2004

Maverick Effort Uses Secure Movie-Sharing Network to Enable

Free Online Delivery Service of Independent Films Direct to

PCs and Wireless Handhelds

Cinequest, Northern California's premier motion picture institute and one of the Top Ten film festivals in the world, today announced the creation of an online distribution and promotional division that will provide the most advanced and innovative secure video delivery capability of its kind. Called Cinequest Online, the service is designed to securely deliver DVD-quality, full-length feature films to fans worldwide via the Internet for the first time. The first phase of the service will launch with expanded access to exciting content from this year's Cinequest San Jose Film Festival, being held March 3-14 -- including interviews with California Governor Arnold Schwarzenegger and extreme sports filmmaker Kurt Miller, and past Cinequest Maverick Spirit award winning actors such Jackie Chan and Kevin Spacey, among others.

Users will be able to easily download or stream full-length feature films, as well as shorts, trailers and select scenes from Cinequest Online onto their computers and handheld devices, and play them back in full-screen, DVD-quality whenever they choose. Film fans and industry executives also will be able to schedule the automatic delivery of films in advance, as well as other content from Cinequest Online, including film screenings, seminar presentations or daily festival updates and other highlights delivered directly to their inbox.

After Cinequest 14 concludes, Cinequest Online will continue to provide ongoing distribution and a free subscription vehicle to greatly expand exposure to independent and other breakthrough or "Maverick" film artists.

Cinequest Online's secure delivery network is enabled by leading-edge technology from Kontiki, the foremost provider of video on demand technologies to businesses. In addition, the launch of the new service is supported by palmOne, Inc., the leading provider of handheld devices. Highlighting the power and versatility of Cinequest Online, Kontiki and palmOne are teaming to provide festival goers with the capability to use their Tungsten(TM) C handhelds to access and view films or trailers and the festival schedule directly via Wi-Fi technology.(1)

"Over the past 14 years, Cinequest has been recognized as the first film festival to tap into and pay tribute to the creative and Maverick talents of the film and computer industry. It is only natural for Cinequest to 'Maverick' the Internet for filmmakers and fans and, in so doing, redefine distribution and access to independent films," said Halfdan Hussey, co-founder of Cinequest.

"The promise of the Internet has gone unfulfilled for filmmakers and most of what has transpired to date has been lacking in quality, impact and artistic control," Hussey added. "With Cinequest Online's secure movie-sharing network, we intend to change the playing field. Cinequest Online will provide an ongoing easy-to-use, high quality and secure venue for getting films to fans while providing additional educational and historical value to students, professional filmmakers and film lovers."

Cinequest Online is launching with an extensive selection of exciting content from this year's festival. Highlights include:

-- A selection of the 68 features and 38 world premiere movies

debuting during Cinequest 14

-- Exclusive coverage of Maverick Spirit Awards recipients,

including presentations to and interviews with California

Governor Arnold Schwarzenegger, extreme sports filmmaker Kurt

Miller and Oscar-nominated screenwriters David and Janet

Peoples, and past interviews with select Maverick Spirit Award

winners. (Past Maverick Spirit recipients have included Kevin

Spacey, Jackie Chan, Jennifer Jason Leigh, Val Kilmer and

James Woods, among others.)

-- A special edition of Kurt Miller's presentation of the Best of

Warren Miller Films

-- Excerpts from Cinequest DXD (Digital by Digital): Digital Film

Showcase and Media Technology Forums

-- Interviews with hot film artists, VIPs and patrons

-- Coverage of major events such as opening and closing night

festivities, and parties.

"Cinequest has a 14-year tradition of honoring maverick filmmakers and the digital cinema tools that they have used to revolutionize their craft. Cinequest Online's use of permission-based movie distribution technology to distribute and debut full-length feature films on-line is brilliant," said Brian McKernan, Editor in Chief Digital Cinema Magazine. "Cinequest Online showcases exciting new digital technologies that empower truly independent filmmakers to also become truly independent film distributors."

Leading Edge Secure Movie-Sharing Technology Employed

Cinequest Online is enabled by Kontiki's Delivery Management System (DMS)(TM), a complete solution that:

-- Provides secure DVD-quality, on demand, full-screen viewing of

feature films on a computer

-- Provides control to producers (using private viewing options