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Microspace Digital Cinema Experiences 200% Growth in Less Than One Year

July 8, 2008

RALEIGH, N.C. and LOS ANGELES, July 8 /PRNewswire/ — Microspace Communications Corporation (Microspace), the leading distributor of digital cinema via satellite, announced today that it has expanded its network to more than 3,000 screens across North America becoming the largest independent network to service theater owners. Since 2005, the company has delivered 33 major motion pictures from nine studios, including the first 3-D movie and the first 4K movie via satellite, to theater circuits within the United States, Mexico and Canada.

Using its VELOCITY(R) satellite system, Microspace now services six full theater circuits including Carmike Cinemas, Celebration! Cinema, Megaplex and Cineplex Entertainment. In addition to these full theater circuits, Microspace also delivers feature films and alternative content to theatres across 22 other circuits.

Much of the success of Microspace is a result of Hollywood’s demand for an effective and cost efficient method of delivery to the growing number of digital screens across North America. Satellite distribution offers studios, theater exhibitors and alternative content providers a less labor-intensive and secure method of content delivery. Delivering motion pictures via satellite is a secure, scalable, hands-free approach that includes full tracking and verification of the delivery through the entire process and reduces the overall workload of the theater staff.

“Microspace has been delivering select movies to our theatres for well over a year now and the full process from initial installation to actual theatre implementation and operation has been has been very straightforward and painless,” said Fred Van Noy, Chief Operating Officer of Carmike Cinemas Inc. “We hope to realize cost savings and operational efficiencies from the Microspace network as the rollout is completed.”

“Microspace provides expert service in delivering content via satellite to our screens,” said Mike Renlund, Digital Cinema Specialist for Megaplex. “We were so pleased with the operation and ease of the Microspace delivery system we have fielded it to all of our theatre complexes.”

Microspace has distributed 33 motion pictures to date. The company has also delivered alternative content such as sporting events, including a college football game delivered live in High Definition to multiple theater locations and the delivery of a sporting event to over 150 Carmike theatres.

“We are very pleased to reach the 3,000 screen milestone ahead of forecast by developing a satellite digital delivery system that meets the security, reliability and accountability required by our studio and exhibitor customers,” said Curt Tilly, manager of digital cinema distribution at Microspace. “Microspace has built a dependable digital cinema delivery network by expanding on its successful 20 year satellite broadcasting business.”

Microspace has played an integral part in helping the industry address the concerns and workflow of electronic distribution via satellite for the past five years. These deliveries have proven the robust nature of VELOCITY and the engineering work that went into developing a comprehensive in-theatre delivery solution. The Microspace approach was then presented to the industry as an open platform, thus encouraging further connectivity and integration with other key suppliers serving the motion picture and theater exhibitor community.

By the end of 2007, Microspace’s digital cinema unit had distributed feature films from five studios to a network that included 1,000 screens. This included more than a dozen participating theater circuits within the United States, Canada, and Mexico.

About Carmike Cinemas

Carmike Cinemas, Inc. is a premiere motion picture exhibitor in the United States with 262 theatres and 2,339 screens in 36 states, as of March 31, 2008. Carmike’s focus for its theatre locations is small to mid-size communities with populations of fewer than 100,000.

About Megaplex Theatres

Megaplex Theatres, owned by Larry H. Miller Theatres Inc., is an early adopter and leader in the digital cinema industry. With its commitment to providing an “Uncommon Experience” Megaplex Theatres furnishes the highest quality of feature film presentation, often posting some of the highest box office sales in the nation.

About Microspace

Microspace Communications Corporation (Microspace), a subsidiary of Capitol Broadcasting Company, is the leader in satellite services for digital cinema, business communications and digital signage. The company operates the largest global business satellite broadcasting network with nearly 340,000 remote links worldwide. With a 20-year heritage, Microspace’s VELOCITY(R) satellite services power networks for Morgan Stanley, Abercrombie and Fitch, John Deere and many, many more. Microspace uses the Intelsat network for delivering services to the digital cinema industry.

The VELOCITY service is available as either a dedicated solution or as an on-demand service, enabling customers to easily and affordably expand bandwidth as their needs change. Microspace is headquartered in the U.S. and has a presence in Europe and Latin America. For more information, visit http://www.microspace.com/.

About Capitol Broadcasting

Capitol Broadcasting Company, Inc. is a diversified communications company which owns and/or operates WRAL-TV, WRAL Digital, WRAL-FM, WRAL-HD2, 99.9 The Fan, Microspace, the North Carolina News Network, CBC New Media Group and Wolfpack Sports Marketing in Raleigh, NC, WJZY-TV and WMYT-TV in Charlotte, NC; WILM-TV in Wilmington, NC; WRAZ-TV and The Durham Bulls in Durham, NC; and real estate interests including the American Tobacco Project and Diamond View office building in Durham, NC.

    Contacts:    Jason Magner/Tim Hammill    Rogers & Cowan    310-854-8128/8122    jmagner@rogersandcowan.com / thammill@rogersandcowan.com  

Microspace Communications Corporation

CONTACT: Jason Magner, +1-310-854-8128, jmagner@rogersandcowan.com, orTim Hammill, +1-310-854-8122, thammill@rogersandcowan.com, both of Rogers &Cowan, for Microspace Communications Corporation

Web site: http://www.microspace.com/




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