Strategy and Current Status:Europa Distribution Conference

Estoril November 2009

Major circuits in UK currently involved in own discussions with distribution to help fund digital changeover

Approx 1000 independent screens unsure of appropriate strategy for themselves

Following a ‘digital cinema roadshow’ held by CEA and UKFC, expressions of interest in forming a joint funding group from approx 600 independent screens of all types

Group CEO appointed in October 2009

Commence negotiations with studios and other possible funders and providers e.g. Third party Integrators

Commence discussions with equipment manufacturers and service providers

Decide upon appropriate legal structure and constitution of the group

Investigate sources of capital finance and financial guarantees

All US studios visited. Overall response is very positive and all are willing to discuss funding agreements directly with the Group

Currently meeting with THI’s to assess level of interest in working with the Group and providing either ‘turnkey’ services or a hybrid solution

Also investigating sources of capital and guarantees with both public and commercial bodies

Feasibility study period ends early 2010 Legal structure formed early 2010 Negotiations with possible funding entities

continue through 2010 Finance and guarantees in place late 2010 Contracts agreed with funding entities

third/fourth quarter Roll-out commences late 2010 through

2011