CinemaNow and ARCHOS Align to Deliver Portable Video to Consumers; Compatible ARCHOS Portable Video Players to Feature CinemaNow Video Download Service; Co-marketing Efforts Drive Adoption of Legal Online Video Distribution on Portable Devices

Business Wire, August 30, 2005

MARINA DEL REY, Calif. and IRVINE, Calif. -- CinemaNow Inc., the leader in video-on-demand for broadband, and ARCHOS, Inc., a global consumer electronics manufacturer and leader in portable digital entertainment solutions, today announced a co-marketing agreement to bring the CinemaNow video download service, www.cinemanow.com, to the new ARCHOS AV 700 Mobile Digital Video Recorder and Gmini 402 Pocket Multimedia Center devices. This agreement represents a significant milestone for consumers looking for additional ways to experience high quality video content on the popular ARCHOS line of portable video players and recorders.

As the first initiative under the new agreement, consumers who purchase the ARCHOS AV 700 Mobile DVR will receive two free download-to-own videos from CinemaNow's portable video collection. Once the content is downloaded, they can easily view the videos on their ARCHOS device. Currently, CinemaNow boasts a library of more than 550 full-length features and more than 200 music videos available for portable video players that are Microsoft PlaysForSure compliant.

The ARCHOS AV 700 comes in 40- and 100-gigabyte hard drive versions and can store up to 400 hours of video. Consumers will be able to watch their CinemaNow videos on the AV 700's impressive 7" wide screen or easily connect the device to their TV for full screen viewing. The AV 700, like all ARCHOS portable video players and recorders, allows consumers to record video content directly from the TV, DVD player, VCR, cable box or satellite receiver, as well as play and record music, view photos and play games. The agreement with CinemaNow gives consumers yet another easy way to acquire high quality video for enjoyment on the device wherever they go.

"CinemaNow has created the market for broadband video delivery over the past six years; in fact, by charting the growth of CinemaNow, one can chart broadband video delivery. As we've seen with the success of online music stores, the marriage of services and portable devices is an essential component in the growth of digital distribution," said Bruce Eisen, president of CinemaNow. "CinemaNow has been at the forefront of portable video, recognizing the need for content that people can view wherever, whenever and however they want. ARCHOS has created portable video players that are impressive in both design and function, and we look forward to working with them as the portable video market continues to grow."

CinemaNow and ARCHOS will continue to create unique promotional offers that entice consumers to get the most out of their portable video experience. Plans also include five free downloads of music videos with the purchase of the ARCHOS Gmini 402 Pocket Multimedia Center. With the Gmini 402 consumers can not only listen to music, but also watch music videos and other video content on the pocket-sized device. CinemaNow's new music video collection lets users build music video playlists for viewing on their portable devices or TVs.

"Whether you're a student on your way back to school, a busy corporate traveler or getting ready for your family vacation, ARCHOS' portable entertainment devices let you take your video, music and photos with you wherever you go," said Larry Smith, chief operating officer of ARCHOS. "In addition to the range of options we provide consumers for acquiring and enjoying media, we are excited to work with CinemaNow to create innovative new ways for consumers to enjoy their favorite movies and videos."

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com) is the global leader in broadband video-on-demand. CinemaNow legally offers content from a library of more than 7,500 new and classic movies, television programs, music concerts and music videos from 20th Century Fox, ABC News, Disney, HDNet, Lions Gate, MGM, Miramax, NBC Universal, Sony, Sundance Channel, Warner Bros. and more than 250 other licensors via downloading or streaming. Founded in 1999, CinemaNow continues to be an innovator in the video-on-demand industry with the introduction of high-definition content and support for portable media devices. CinemaNow counts Menlo Ventures, Lions Gate Entertainment, Microsoft, Cisco Systems and Blockbuster as investors.

About ARCHOS

ARCHOS is a global consumer electronics hardware manufacturer and is the technology leader in the field of digital portable entertainment solutions. Committed to the most innovative technology, ARCHOS offers award-winning digital pocket-sized products that feature audio and video recording, photo viewing, gaming, as well as other multimedia and productivity applications, for the enjoyment of the most exciting entertainment anywhere, anytime. ARCHOS has offices in the United States, Europe and Asia. More information is available online at www.archos.com.

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