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Steve Bergman Executive Vice President, Digital Distribution.

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1 Steve Bergman Executive Vice President, Digital Distribution

2 Why Deluxe is Interested in the DCI Specifications … Established in 1915 by Fox Film Corporation, and for next 75 yrs Worlds Largest Film Laboratory (over 1.5B metes in 2004) Laboratories in Los Angeles, Toronto, London, Rome, Barcelona, Madrid and Sydney. Strategic relationships South & Central America, and Asia. Addl business units provide the major Hollywood Studios with End-to-End Services

3 Why Deluxe supports the DCI Specifications The specs clearly articulate the Digital Cinema requirements of the 6 major Hollywood Studios who drive global box office. The specs remove uncertainty in the marketplace and makes the role for Deluxe very clear: to continue to provide end-to-end services to the film industry. We recognize all the hard work that Walt Ordway, Howard Lukk, Jim Whittlesey, Steve Tsai and their team put in over the past nearly 3 years – and applaud their efforts to include all members of the film community in the process.

4 The DCI Spec builds on Deluxes Core Competencies Technological Innovation 5 Academy Awards for Technical Achievement Color Management From Origination through any Distribution Channel Anti-Piracy, Security & Forensics Worldwide Leader in Tracking Piracy Asset Management Elements of Masters, AND Versions of Masters Global Distribution Reach Across All Formats From Theatrical Release thru DVD and Broadcast Trusted Partner for nearly 90 years

5 Deluxes Services Span the Content Value Chain & Distribution Markets Content CreationContent ManagementContent Distribution Technology Innovation Color Management Global Distribution Asset Management Security Trusted Relationship FilmDigital Cinema Specialty Mkt Early Window Television Home Entertainment Mobile Entertainment Online Entertainment Lab Film Processing Print & Film Dailies Forensic Coding EFILM Digital Intermediates Digital Dailies DDS CE&A Menuing, Subtitling Content Production DS&P HD/SD Video Dailies Video Mastering/QC Sound Mixing/Editorial CFX Digital Optical Effects DMM Data Centric Content Storage & Repurposing Collateral Assets Storage & Fulfillment Online Sales & Marketing Tools Trailer Breakdown & Fulfillment DFS / ETS Print Logistics & Delivery Trailer Placement DMM Physical Media Distribution Collateral Assets Delivery DMS DVD Manufacturing, Distribution & Supply Chain Mgmt Deluxe Digital Cinema Network & Physical Media Delivery of Digital Cinema Content Deluxe Digital Distribution Data-Centric Content Delivery

6 DCI Spec & the Deluxe Motion Picture Content Value Chain Film Capture Develop Film 35mm Dailies Digital Intermediate Release Printing Digital Dailies Format Conversions DCinema Mastering Digital Asset Management Physical Distribution DVD Replicatn & Distribution Digital Distribution Post Production Compression, Encoding & Authoring Digital Capture

7 Feature Distribution Services Depots: 32 in US, 6 in Canada, 4 in UK Returns, Inspections, Rejuvenations, Destructions Print Control Booking, Move Over, Hold Over, COD, Circuit Logistics Lab to Depot, Depot to Theatre, Theatre to Theatre Real-Time Inventory System Clients check status at Lab, Depot, or Theatre

8 Forensic Coding Technology (FCT) End-to-End Solution for Anti-Piracy Code Placement Manufacturing Packing, Delivery & Logistics Forensics Department Statistic Reports Multi-Layered Security Patents Pending

9 FCT Statistics 84 Theatrical Releases since deployment summer 2003 Used 100% on all Major Releases by: Fox, Paramount, MGM, Miramax, New Line, Sony 99.9% success on tracking to unique source 325+ pirated copies received and reviewed to date 90% camcorded from theatre 5% telecine 5% misc.

10 Deluxe Digital Cinema: Building on 90 years of Technological Innovation Manage Transition Seamlessly: no addl client staffing Explore new Digital Services, often at request of Studios Costs cheaper with shared infrastructure across multiple Studios Leverage existing businesses, relationships, & experience Color Management: Negative thru Exhibition, Home & Devices Anti-Piracy: Security & Forensics Asset Management: Post-production thru International Versioning World-wide reach across Distribution Channels Key Building Blocks already in place: EFILM, Deluxe Digital Studios, Capital FX, DSP, DMM & DFS / ETS

11 Steve Bergman Executive Vice President, Digital Distribution

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