Cinedigm Digital Cinema Corp. Announces Fiscal Year End 2009 and Fiscal 2009 Fourth Quarter Results

Market Wire, June, 2009

Access Integrated Technologies, now doing business as Cinedigm Digital Cinema Corp. ("Cinedigm" or the "Company") (NASDAQ: CIDM), reported a 3% increase in fiscal year 2009 revenue to $83.0 million, and an 18% decrease in revenue, to $17.9 million for the fiscal 2009 fourth quarter ended March 31, 2009, versus the year-ago periods. The Company posted Adjusted EBITDA(1) (defined below) of $39.4 million for the fiscal year 2009, an improvement from fiscal year 2008 Adjusted EBITDA of $30.3 million. The net loss for the fiscal year 2009 of $37.4 million includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, stock-based expenses, stock-based compensation, impairment of goodwill and change in the fair value of interest rate swap aggregating $53.6 million or $1.95 per share compared to $44.4 million or $1.74 per share in the fiscal 2008 year-end. The Company generated positive cash flow from operations of $8.4 million in the fiscal 2009 fourth quarter and ended the fiscal year with over $26 million of cash on its balance sheet.

FISCAL YEAR 2009 AND FOURTH QUARTER HIGHLIGHTS

--  Fiscal year 2009 revenue increased by 3% to $83.0 million compared to
    $81.0 million in the prior year. The yearly improvement was driven largely
    by an increase in the media services segment, including increased Virtual
    Print Fees ("VPFs") as a result of a larger number of digital screens
    deployed and higher media delivery fees in our Digital Media Services
    ("DMS") delivery unit, offset by a decrease in our content and
    entertainment segment due primarily to the movement of several events to
    fiscal year 2010 and planned reductions in unprofitable pre-show
    advertising contracts.

--  Total fiscal year 2009 Media Services segment revenues of $59.0
    million and EBITDA of $46.8 million, versus prior year amounts of $53.9
    million and $38.8 million, respectively (before corporate allocation).

--  Total fiscal year 2009 Content and Entertainment segment revenue of
    $22.7 million and EBITDA loss of $0.5 million, versus prior year amounts of
    $25.8 million and loss of $1.2 million, respectively (before corporate
    allocation).

--  Fiscal 2009 fourth quarter revenue decreased by 18%, to $17.9 million
    from $21.9 million in the comparable year-ago period primarily due to a
    contracted 16% step-down in VPF rates and seasonally fewer titles and
    prints in the quarter. This contracted step-down in VPF rates charged to
    the major studios will stabilize with just one more contracted reduction of
    7% in the third quarter of fiscal 2012.

--  Fiscal year 2009 Loss From Operations improved to $4.9 million from a
    loss of $5.9 million in the prior year, due to increased revenues and
    reduced direct operating expenses and SG&A, offset by an impairment charge
    and increased depreciation. Loss From Operations for the fiscal 2009 fourth
    quarter decreased to $2.0 million, from a loss of $2.4 million in the
    comparable year-ago period, due to reduced operating expenses, offset by
    decreased revenues.

--  $5 million of annualized expense savings driven by a reduction in
    headcount and operating costs, with $2 million of the savings recognized in
    fiscal Year 2009

--  Adjusted EBITDA margins improved to 47% for fiscal Year 2009 from 37%
    in the prior year. Adjusted EBITDA margins remained at 41% in the fiscal
    2009 fourth quarter, the same margin as in the comparable year-ago period.
    

Bud Mayo, Chief Executive Officer of Cinedigm, stated, "The past year has been tremendously exciting for Cinedigm. Not only did we rebrand the company, but we also brought ground-breaking events to consumers and fans of college football and the NBA in the fourth quarter. Despite continuing economic challenges, I am confident that Cinedigm is in a strong position to capitalize on trends we are seeing in the resilient theatre industry, including the increasing demand for 3-D content. We look forward to continuing to play a leadership role in the transition of the exhibition industry to digital cinema and will leverage our leadership position to drive the growth in our system deployment, digital delivery, software and content and entertainment segments. We will also continue to work diligently to sustain our disciplined expense controls and will continue to find innovative ways to leverage our industry leading digital cinema platform in an effort to increase revenues organically with minimal use of capital."

PHASE 2 UPDATE

Mayo added, "We are optimistic about our intensifying efforts to secure financing for Phase 2 installations through third party lenders as well as our exhibitor and vendor partners which will generate ongoing fees and other key revenue streams for Cinedigm. To date we have installed 139 Phase 2 screens and approximately 3,900 screens in total."

FISCAL YEAR 2010 FINANCIAL GUIDANCE

All comments regarding fiscal year 2010 do not assume a large Phase 2 deployment or a large rollout by other entities, including DCIP, although the Company expects both to occur. Nevertheless, Cinedigm expects to produce double digit increases in revenues and EBITDA over fiscal year 2009 levels as a result of the full year impact of $5 million of expense savings, the overall increase in industry digital screen deployments, which will lead to growth in our DMS division's revenues, an increase in contracted content events for Fiscal year 2010 as well as continued solid performance of its Phase 1 deployments.