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1 kino notes E N T E R T A I N M E N T S O L U T I O N S W O R L D W I D E SUMMER 09 3D momentum growing worldwide As Christie anticipated last year, 3D has become the catalyst for cinemas to upgrade to digital. 3D is igniting screens, (as well as globally), delivering exciting content that audiences crave. And, with so many attractive options, exhibitors are realizing the financial benefits of digital 3D. With box office records being set for 3D openings around the world, exhibitors expect that this summer season could trigger another banner year. Pulling people off their couches and into cinemas With a wave of filmmakers creating dynamic and enhanced 3D content, and more than 20 movies slated for 3D release over the next two years, along with advances in digital projection technology, movie-goers will be experiencing immersive entertainment that can t be matched on a home theatre system. Christie digital projection installations continue to help exhibitors enjoy the revenue-generating benefits of alternative content such as opera, live music concerts, Story continues on page 2 ALSO IN THIS ISSUE Ymagis business model 7 Asia Pacific next frontier 8 Thailand s lifestyle cineplex 9 Digital cinema rollout for Independents 10 Exclusive Official Supplier Cannes Festival Finnkino marks Finnish debut for Christie Screenvision strengthens marketing in France Digital cinema expansion in Spain see page 2 see page 3 see page 4 see page 6

2 What is encouraging is that all of the exhibitor communities are moving forward... Dale Miller Vice President, EMEA Christie 3D explodes onto screens Story continues from page 1 and sporting events. These exciting forms of entertainment will not only literally jump out at enthusiastic audiences, but exhibitors will experience dramatic jumps in revenue streams. Christie projectors lighting up 3D screens Because Christie s new Brilliant3D TM triple flash technology delivers picture-perfect images that are 33% brighter on the screen and our solutions are easy to integrate into theatres they continue to be the industry s most popular and proven digital projectors. Knowing that over 80% of the worldwide market has chosen Christie projectors, both local integrators and dealers key to the on-going success of the digital rollout consistently specify the Christie brand of projection systems. In 2009, digital cinema continues to gain momentum across the EMEA market place. With the number of 3D digital releases being released by the studios, exhibitors are moving forward aggressively with their rollout plans. What is encouraging is that all of the exhibitor communities are moving forward, from the large multi-country chains to the vibrant and strong independent sector. And that means the consumer now has a wider choice than ever, notes Dale Miller, vice president EMEA, Christie. 62nd Festival de Cannes gives top billing to 3D Christie projects the first animated feature in 3D at opening ceremony For the third year running, XDC appointed Christie as the supplier of digital cinema projection solutions at the 62nd Cannes Film Festival. Cannes, the most recognized film festival and major cultural influence in cinema, opened this year s event with the world premiere of the new animated comedy adventure Up in Disney Digital 3D, the new animation from Disney Pixar. Out of 53 cinema titles announced for the official lineup, at least 50 features were screened digitally. 94% of the feature films screened used Christie digital projectors. Shaping global cinema Disney Enterprises, Inc. All Rights Reserved Both CST (the representative organization of cinema professionals in France responsible for the technical operation of Cannes) and XDC (an official partner for the Cannes Film Festival) opted for Christie as their technical partner supplying the digital projection solutions for the Festival. XDC, a leader in digital cinema with over 500 installed digital screens, specified a Christie CP2000-SB projector to deliver the long-awaited 3D presentation of Up, which takes audiences on an immersive journey into a lost world. To enhance this inaugural screening, the CP2000-SB, with Brilliant3D was selected because it maximized brightness and its single lens system reduced operating costs, without compromising on quality. Fabrice Testa, vice president sales & business development at XDC, said, 3D today acts as a catalyst for the conversion to digital cinema. Exhibitors who are going digital will equip at least one screen per multiplex for 3D cinema projection, and many theatres plan to install two or three digital systems per multiplex. In this context, Christie is a partner of choice for XDC, providing reliable, easy-to-use and easy-tomaintain products. This is why we have renewed our joint partnership for the Cannes Film Festival this year. XDC implemented its Cinestore Solo G3 server in all the auditoriums at Cannes and collaborated with XpanD, an expert in 3D presentations. Christie digital projectors at Cannes Official Competition: Seven Christie 2K DLP Cinema projectors were installed in the following auditoriums: Lumière, Debussy, Bazin, Buñuel, 60th Anniversary Theatre and the Beach Cinema. Film Market: Three Christie 2K DLP Cinema projectors were installed in Bory and Lerins2 auditoriums and auditorium J. Plus, nine Christie high definition DLP standard projectors equipped the other HD video rooms. Palais des Festivals: One Christie 2K digital control room installed to check the digital copies. France at digital forefront France is spearheading the digital cinema revolution with over 392 screens in 113 commercial theatres going digital. 80 screens have already been equipped with a 3D system, highlighting the potential of 3D for exhibitors and production companies alike to boost their programming experience. FinnKino marks Finnish debut for Christie Finnkino, the largest chain of cinemas in Finland, and one of the largest in the Nordic region, develops its cinema services by building new theatres and refurbishing existing ones. Their goal is to expand the cinema-going experience, offering a combination of quality films, the very best in comfort and audio-visual technology, and a wide range of ancillary services. Founded in 1986 as a consortium of a total of 34 companies engaged in film distribution and exhibition, Finnkino has been a part of the Rautakirja Group since They currently operate 16 cinemas in 11 cities in Finland with a total of 94 screens. Alongside its operations in Finland, Finnkino has subsidiaries in Latvia, Lithuania and Estonia. Finnkino forecasts that they will sell up to 10 million tickets this year. With 170 screens covering Finland and the three Baltic countries, the exhibitor began to look seriously at the digital market two years ago. That was the beginning of our learning curve, notes Finnkino s Technical Manager Ari Jaska Saarinen. In the early days everyone was thinking that so long as you had the TI chip in the digital head, all projectors were of similar quality. But there s more knowledge about it now and what we have seen from Christie looks very impressive indeed, said Saarinen. 2 3

3 3D explodes onto screens Story continues from page 3 Largest Nordic operators back CP2000-XB Despite Christie s huge global market share in digital cinema projection, this order represented Christie s entry into the Finnish market. It s great that we can now add Finland to the other Scandinavian markets that we have already penetrated, stated Richard Nye, Christie's market development manager for cinema, Middle East and Africa (EMEA). At last year s Cinema Expo Saarinen had the opportunity to compare Christie s full suite of premium CP2000 2K products. There were several compelling reasons for adopting the Christie brand, he said. The first was that we could get 20-25% more light output from the projectors than their competitors and that is because of the superior light path. With the company moving increasingly to active 3D via an XpanD solution, the requirement for high output further became paramount. You really need high brightness to satisfy the 3D experience. The final issue is that the CP2000-XB enables 3D content to be projected in full 2K resolution which no-one else in the 2K market can do, added Saarinen. The technology breakthrough is Christie Brilliant3D. A first for the industry, this feature is enabled on all Christie 2K DLP Cinema projectors. Adding new momentum to their conversion to DCI-compliant digital screening rooms, Finnkino invested in ten Christie CP2000-XB split-body 2K digital projectors. Other factors that appealed to Saarinen s team were ease of use and fast installation, and the fact that Finnkino only needed to modify the windows in two projection rooms to accommodate the compact, split body design. This ensured that the rig could be installed by their own technical crew quickly. Christie also arranged a private training seminar, which was extremely useful, as it will enable us to support our own installations, commented Saarinen. Finnkino s flagship is the 14-screen, 3000-seat multiplex in Tennispalatsi, developed in 1999 on a site that had originally been built for the cancelled 1940 Olympic Games. The auditoriums vary in size from 92 to 703 seats, with the biggest housing a screen measuring square metres (1989 sq.ft) making it the largest screen in Northern Europe, and now converted for 3D use. It was also the world s first movie theatre to implement THX tri-amplified sound system and SDDS in all 14 digital auditoriums. Finnkino is also a major player in the Baltic countries as owner of Forum Cinemas AS (Estonia), Forum Cinemas SIA (Latvia) and Forum Cinemas UAB (Lithuania). They intend to invest over the next two to three years to expand its chain of movie theatres. As for Ari Saarinen, he believes his relationship with Christie is just at the beginning. We are very happy with this initial purchase, he confirmed. We are able to use the CP2000-XB even in the smallest auditoriums which is important, as it means we can remain consistent with one model throughout. This avoids problems of needing different parts for different models, and allows cinema staff to get used to it easier. In fact the projectionists love the CP2000-XB because it s so easy to use. Screenvision strengthens its marketing approach in France Screenvision is the leading innovator of on-screen cinema advertising, with a presence in France, Belgium, Portugal and Denmark. It is a joint venture between ITV plc, the UK s largest commercial television network, and Thomson a global supplier of technology, services, and systems to the media and entertainment industries. Screenvision currently serves over 1400 screens in France. Screenvision offers its partners a full range of technical services for content management, from 35mm to digital environments. They also provide a centrally co-ordinated media planning, buying, production and research service to international advertisers. Immersing clients in the entertainment experience Recently, Screenvision fitted its viewing room with a Christie CP2000-ZX digital cinema projector. The aim was to show customers, such as advertisers, media agencies and film distributors, their advertising messages as they would appear under actual projection conditions, so that they could approve the content within a real cinema environment. Christie is a reliable and responsive company that provides innovative technical projection solutions with outstanding light output. The Christie digital cinema projector was an obvious choice for us to stand out as the pioneers of e-cinema in France, said Clement Beauvalet, deputy director general in charge of business development for Screenvision. The viewing room adds another dimension to our relationship with all our partners and customers. It allows us to strengthen our role in digital cinema advertising in France and to assist in this major digital transition, added Beauvalet. For example, to support the emergence of 3D feature films, Screenvision now offers advertisers content creation in 3D. Following a preliminary study, Cine Digital Service, a French company offering consulting, sales, installation and technical assistance for cinema equipment, developed a solution that meets the demands of more sophisticated on-screen advertising. As of this June, Cine Digital Service will have installed over 500 digital projection systems throughout France. Screenvision already had 35mm equipment, and they were able to integrate digital cinema into the heart of their existing facility, Daniel Grall, president of Cine Digital Service noted. Incorporating both technical and architectural specifications, we set up a package providing optimal vision regardless of the format adopted. A successful transition to digital Completed in March in compliance with DCI recommendations, Screenvision s turnkey installation--which took into account both sound and video requirements, included the Christie CP2000-ZX digital cinema projector. We have a long-standing relationship with Christie, who, as a global leader in digital cinema, has always demonstrated its ability to remain competitive both in terms of price and quality, says Grall. Christie s reputation is based on innovative technical solutions, ease of installation and use, and a good cost/performance ratio. The Christie CP2000-ZX, based on 2K DLP Cinema technology, features a brightness of 18,500 lumens and a 2K resolution for ultra-compact dimensions. It is able to display pristine images on screens with widths up to 14 meters (46 ft), comments Pascal Gervais, development director of Christie France. We are obviously delighted to provide Screenvision the transition to a digital projection system that has many advantages for advertisers and other partners. They now can reduce implementation time between the start of the ad campaign and its distribution in theatres by eliminating transportation of 35mm reels. The conversion to digital means that they can quickly respond to advertisers needs for additional campaign promotions, open houses and other events. Exhibitors can easily change the order and arrangement of trailers and commercials at the last moment, and present audiences with more entertaining content and events. With the transition to digital 3D, they will be now be able to give advertisers new opportunities to enhance their commercials, and provide new impetus to the advertising industry, says Gervais. Christie s digital projector was an obvious choice for us to stand out as pioneers of e-cinema in France. Clement Beauvalet Deputy Director General Screenvision 4 5

4 3D explodes onto screens Story continues from page 5 the feature that was crucial in selecting Christie is how easy it was to use the menus. Enrique Martinez Technical Director Yelmo Cinemas Yelmo Cines Islazul: A blueprint for digital expansion in Spain Islazul, translated, means the Blue Island. The theatre has become a part of a planned expansion of the city of Madrid. More than just a local shopping center, it is a major regional retail and leisure destination. An imaginative approach to the city s zoning, Islazul created a series of malls, each with its own character. Along with one of Spain s best fashion shopping experiences, and a food court, there is a Plaza that serves both shoppers and visitors, and includes the new Yelmo Cinemas 13-screen multiplex. A leading film exhibition chain in Spain, Yelmo Cinemas serves over 12 million moviegoers a year with over 350 theatres in 31 different cinemas. The new Yelmo Cines Islazul, with a capacity of 3,200 seats, is one of a series of technological advances and innovative services that make it the most modern multiplex in Spain, and sets a benchmark for Europe. Arts Alliance Media (AAM), a European leader of digital film distribution, in collaboration with its Spanish partner Kelonik, were responsible for the supply, installation and maintenance of all equipment, including the selection of Christie digital projectors. We believe that the Christie projectors, known for their state-of-the-art technology, are the most advanced in terms of brightness. We trust their proven performance, since Christie has the largest number of DLP projectors installed in the world says Tomás Naranjo, commercial director of Kelonik. Nuances that tipped the scales in favor of Christie Five of the theatres within the Yelmo Cines Islazul multiplex, which represent 50 percent of its seating capacity, have been fully digitized with Christie CP2000 series projectors. For Yelmo, this was their first experience with a digital multiplex solution. The goal of this installation was to determine the ability to share and distribute content between different screens, said Enrique Martinez, technical director of Yelmo Cinemas. Five Christie digital projectors were chosen one CP2000-SB, two Christie CP2000-ZX and two Christie CP2000-S because they are designed to support any signal, which was key for Islazul to output all kinds of content such as soccer, opera, and music concerts. Martinez noted, This type of alternate content will be much more common in coming years and will surely become an important part of our revenue at the box office. Hallmarks of Yelmo Cinemas Islazul One of the most important characteristics of Yelmo Cinemas Islazul is that it houses the largest screen measuring meters wide and meters high (84 ft x 35 ft), located in one of the theatres that has more than 700 seats, and is equipped with a Christie CP2000-SB projector. Another auditorium, with capacity for 268 people has a CP2000-S projector installed and is ready for 3D projection, using XpanD active glass system. Yelmo plans to transform another 432-seat theatre for 3D in the near future. A concept developed by Yelmo Cinemas is a multifunctional auditorium called Cinegames that is ideal for holding online multiplayer networked videogames that requires a large screen format and special effects. Equipped with a Christie CP2000-ZX, the room has 54 VIP leather seats with individual screens and audio systems on individual headrests. Euroseating specifically developed audio-tactile systems built into the seats. Cinegames is also used for interactive conferences, as well as cultural, educational and corporate events that require digital projection on a big screen. After the successful trial, Yelmo Cinemas recently announced that it has reached a new agreement with AAM to equip 22 additional rooms within its chain of digital cinemas across Spain, with 3D and satellite-enabled capabilities using DCI-compliant systems. Yelmo, AAM and Kelonik have again, by mutual agreement, selected Christie projectors and Doremi servers for deployment. We want to take advantage of the coming digital wave of 3D movies, says Martinez. Ymagis: Business model premieres in France Financing solution helps exhibitors convert to digital Dedicated to the world of digital cinema, Ymagis, based in Paris, provides services to distributors, advertising agencies, producers and operators. Created in 2007 by Jean Mizrahi and Jean Christophe Lacroix, both cinema industry executives, the company offers technical and financial solutions to ensure deployment of cinema to digital broadcasting, as well as solutions for encoding DCI standards and distribution of digital copies. Technological developments at Ymagis are first tested in the projection room of the company. For cinemas under contract during their transition to digital, Ymagis provides other services such as the creation of masters (DCP), duplication and distribution of copies (KDM in cinemas) and validation files. They are also engaged in digital postproduction. The compact Christie CP2000-ZX digital projector offers maximum installation options. Story continues on back cover Christie is a partner of choice that reflects our goals in the transition to digital. Jean Mizrahi Founder and President YMAGIS 6 7

5 Asia Pacific region: next frontier for digital cinema Christie forges digital deployment deals in South Korea, China, India and Thailand It s a testimony to the global quality of our entertainment solution and strong technical support teams Lin Yu Vice President, Asia Pacific Christie CGV Shindorim theatre in Seoul, Korea. Christie is enjoying enormous digital cinema growth of more than 400% in the Asia Pacific region. With major deployment deals in place, this growth firmly establishes Christie as the undisputed industry leader. To date, more than 600 sites in Asia Pacific have installed Christie CP2000 series DLP Cinema projectors, with an additional 500 sites scheduled for conversion by the end of this year. Christie installations lead the film-to-digital transition After posting a record of more than 7,000 completed installations worldwide, Christie is now driving the growth of digital cinema in Asia Pacific, with many countries in the region embarking on large-scale digital cinema plans. South Korea-based D-Cinema Korea Co. Ltd (DCK), the joint-venture company of CJ CGV and Lotte Cinema, announced a Virtual Print Fee (VPF) deal with major Hollywood studios that will launch the country s largest digital cinema deployment to date. The studios, including Paramount Pictures, Twentieth Century Fox and Universal Pictures, have agreed to provide digital theatrical releases and pay a VPF for each title to help offset the initial costs of conversion. For the deployment, Christie will provide its CP Series projectors in theatres across the country. South Korea is expected to be the first, fully digitized country in the world. China has gathered momentum since the triumphant performance of a record number of Christie digital projectors at the 2008 Beijing Summer Games ceremonies. Together with Beijing Time Antaeus (TA) Media Tech. Co., Ltd., Christie provided 120 Christie CP2000-ZX models that delivered a spectacular Kingdom Garden Movie Station in Beijing, China. presentation for the event and demonstrated their full flexibility in a non-cinema environment. After the ceremonies, these projectors were installed in TA s theatres across China as part of the country s film-to-digital conversion. In addition, China s renowned Shanghai Film Group (SFG) Corporation and Lianzhong (LZ) have also selected Christie exclusively for their respective nationwide digital cinema rollout plans. In India, Christie continues its collaboration with Scrabble Entertainment. To date it has successfully installed 200 Christie DLP Cinema projectors for India s largest single digital cinema deployment. This historic rollout has brought the digital cinema revolution to India. Christie projectors are now installed in theatres owned Fun Theatres Audi 1 Northsquare Mall Pitampura, one of Scrabble Entertainment s first digital deployments using Christie projectors. by PVR Cinemas, Fame Cinemas, INOX and Fun Theatres across the country. In Thailand, Christie has worked with its Thailand-based partner, Golden Duck Group, to develop the local cinema scene. Major Cineplex Group, the country s largest exhibitor, has also recently adopted a full Christie digital cinema solution for their theatres in Bangkok. (See separate story on page 9). In addition, SF Cinema, the second largest chain in Thailand, is also a firm supporter of the Christie CP2000 Series. In the recent digital cinema deployment plans, Christie has expanded its market share in the Asia Pacific region very rapidly and surpassed the growth rate of most digital cinema providers in this part of the world. Leading exhibitors are now opting for Christie digital cinema solutions as they have witnessed successful implementations worldwide. It is also a testimony to the undisputed global quality of our entertainment solutions and strong technical support teams to help theatres complete their film-to-digital transitions, comments Lin Yu, vice president, Christie Asia Pacific. Thailand s lifestyle entertainment cineplexes enhanced with Christie digital projectors Major Cineplex Group is Thailand s leading lifestyle entertainment company with core business in cinema, bowling, karaoke, ice skating rinks, retail space, film distribution and advertising media. The Cineplex concept was first introduced to the Thais in 1995 when Major built the first-of-itskind standalone cineplex in Bangkok. Combining cinema and entertainment under the same roof, moviegoers were offered a wide selection of films along with a vast variety of restaurants, gift shops, bookstores and many other lifestyle stores. Major s standalone cineplex quickly became a very popular destination of lifestyle entertainment alternatives for residents in Bangkok. In subsequent years, several more standalone cineplexes were added to Major s network. Offering a full spectrum of cinema choices After several successful years, an alternative vehicle for growth the lifestyle neighborhood mall model was created in Major s compact lifestyle neighborhood mall, typically built on a smaller plot of land next to residential areas, has grown in metropolitan areas as well as more urbanized areas around the country, providing enhanced convenience to the moviegoers. Major Cineplex Group has over 40 Major Cineplexes and more than 350 theatres in Thailand. Currently, 15 of those screens have adopted the full Christie digital cinema projection solution the most extensive digital cinema deployment in the country to date. Christie, working with its Thailand-based partner, Golden Duck Group, has been busy developing the local cinema market. Seven of the projectors installed to date are 3D-capable. Golden Duck recently installed 10 Christie CP2000 series projectors of which nine units were the CP2000-ZX model. All the digital projectors utilize Christie Brilliant3D technology which enables 3D content to be projected in full 2K resolution. In addition they use Christie high performance CDXL D-Cinema lamps. Thailand movie-goers are very sophisticated in their entertainment needs. Going digital 3D is an excellent way to reinvent movie-going into an engaging experience for the local consumers, comments Jonathon Lim, general manager, Singapore, Christie. We look forward to being a valuable partner in helping Major Cineplex bring the new cinema frontier to Thailand.. We look forward to being a valuable partner...to bring the new cinema frontier to Thailand. Jonathon Lim General Manager, Singapore Christie 8 9

6 Helping independent exhibitors participate in the digital cinema rollout Digital cinema can significantly expand a theatre s potential revenue streams. Craig Sholder Vice President Entertainment Solutions Christie USA Classic Cinemas Lake Theatre in Oak Park, Illinois. In conjunction with its authorized digital cinema resellers, Christie has developed more customizable programs that provide marketing and sales support, offer technical advice and expertise, and maintain spare parts inventory. These critical issues are often stumbling blocks for independent theatres in their efforts to go digital. Independent theatres serve an important niche in the cinema marketplace. They cater to local audiences and provide a connection to their communities. By working closely with certified Christie dealers who sell, install and service the independent theatres, Christie offers a broader range of support that includes turnkey operations and the most advanced digital projection solutions, comments Craig Sholder, vice president, Entertainment Solutions, Christie USA. Reaping the full benefits of digital cinema Classic Cinemas, a family-owned business based in Downer s Grove, Illinois, operates 13 theatres in 12 communities. They were early adopters of digital sound, digital projection technology and 3D. Specializing in lighting up the darkened downtowns in northern Illinois, their theatres have become the engines for driving downtown redevelopment. Recently, Classic Cinemas installed Christie CP2000-ZX projectors in seven locations to show My Bloody Valentine and Monsters vs. Aliens in 3D. According to Vice- President Chris Johnson of Classic Cinemas, Christie is a good company to work with and they strongly support their products. Their projectors are ideal for showing 3D content. Because they feature very efficient light engines, we use less bulb and get more light, which helps us to reduce our ongoing costs. Audience reaction to our 3D showings is excellent, and we re confident that the viewing experience we offer is the result of the quality images that Christie projectors provide on the screen. 3D drives digital conversions EuroWest Companies, headquartered in Essex, Vermont, recently converted one of its two theater complexes in Essex, Vermont. Peter Edelmann, president of EuroWest, remarked, The kids are going wild for 3D movies, such as Monsters vs. Aliens, and we have great expectations for more content to be available throughout Essex Cinemas in Essex, Vermont Edelmann noted that he selected Christie digital projectors because of its reputation, quality and long-term value. He added, The new digital projection equipment from Christie will be used for more than movies. It will allow a lot of alternative programming, including live concerts, video gaming activities and sporting events, such as the Super Bowl. Dale Chapman, regional manager at EuroWest Cinemas, commented that they were extremely happy with the Christie CP2000-ZX projectors. We primarily selected Christie equipment for the Essex Cinemas because of their reliability, ease of service, the lamp guarantee, and the reputation that Christie has in the industry, he said. He recalled receiving an from a moviegoer who saw Monsters vs. Aliens at one of his theatres. It was the best 3D experience they ever had. Chapman noted that they will install another Christie CP2000-ZX projector in the Cumberland 12 Cinema located in Plattsburgh, New York. Because of the record number of 3D features and alternative content coming through the Hollywood pipeline, 3D has become the driving force for digital conversions. 3D justifies our decision to convert, and makes the new digital technology affordable for us. We will be in a position to finance our systems faster on the local level. Making a difference to the bottom line In 2002, Southern Theatres, headquartered in New Orleans, was launched to develop and operate state-of-the-art multiplex, stadium-seating movie theatres. Responsible for daily operations of The Grand Theatres and Amstar Cinemas in 18 locations with 280 screens, from Alabama to Texas, they have plans for continued expansion in key markets throughout the Southeast. Ron Krueger, COO of Southern Theatres, remarked that they wanted to take advantage of digital cinema deployment, and to enjoy the value and increased revenues that 3D will bring to his theatres. I believe that 3D is the lynch pin to the rollout of 2D digital cinema, he said. Southern Theatres recently installed Christie CP2000-ZX digital projectors in five of their theatres, in time for Walt Disney s Jonas Brothers: 3D Concert Experience. Krueger said that Christie s products and services are very reliable and he has confidence in their ability to deliver. We have no problems whatsoever. We selected the Christie CP2000-ZX projectors because they were the right size for our mid-size auditoriums, and they are extremely cost-efficient. Providing more than just projectors Integrity Entertainment Systems, located in Albany, New York, is an authorized digital cinema reseller for Christie. They handled the sales and installations at both Southern and EuroWest. We supply all the components necessary for the complete installation. We coordinate infrastructure and the financial aspects, provide surveys and measurements, Southern Theatres Conroe 14, located in Conroe, Texas. and are responsible for the documentation required by the studios, as well as the 2D and 3D content providers, said Gary Engvold, president of Integrity. I call it a one-stop approach where we include project management at no additional cost to the independent exhibitor. Engvold added: We also offer our independent cinema customers the ability to fund all or part of their cost for the digital projectors. By referring them to various leasing companies where we have established a successful relationship, we help open the doors for our clients digital conversions. About a third of the systems purchased are through leasing options we arrange. Digital cinema can significantly expand a theatre s potential revenue streams. Christie is dedicated to helping independent theatres enjoy the best of both worlds: affordable financing packages and the highest quality digital cinema installation and support platform, sums up Sholder. < Cumberland 12 Cinema in Plattsburgh, New York 10 11

7 3D explodes onto screens Ymagis: Business model premieres in France Story continues from page 7 Due to a growing demand, they are considering a new business venture to remaster old films. Ymagis has also set up a digital lab that enables an increasing number of producers and distributors to access the latest digital technologies for distribution of content. Expanding the digital platform with Christie projection solutions With its commitment to move quickly in the conversion to digital, their technology experts chose Christie to provide projection equipment for its new digital screening room. The Christie CP2000-ZX, based on proven technology and the reliability of DLP, was installed by TACC, a subsidiary of Digital Cinema Service. Coordinating a network of installers throughout France, Digital Cinema Service, with a network of more than 70 people, provides a unique link between manufacturers and operators of cinema facilities. The Christie CP2000-ZX was selected because it is up to 50% more compact than its competitors offering maximum installation options for small to medium size rooms. It has also proven to be very easy to use and maintain. Daniel Grall, president of Digital Cinema Service commented The CP 2000-ZX offers an exceptional brightness level of 18,500 lumens which projects an outstanding image quality on the screen. Digital cinema is more than a new technology. It is a major development for the cinema industry that allows viewers to have new visual experiences such as 3D, and for cinemas to expand their programming strategy, at a very competitive price, says Jean Mizrahi, founder and president of Ymagis. As a market leader in solutions for digital projection, Christie is a partner of choice that reflects our goal to assist stakeholders in the transition to digital. The savings derived from digital copying, with a cost significantly less than the 35mm print the principle behind virtual copies will be transferred in part towards financing digital conversions. This incentive plan ensures the funding of more than 90% of French cinemas, allowing a balance between major circuits and independent cinemas, between large integrated distributors and large and small distributors. This model was conceived to preserve the advances made over the past hundred years of French cinema, marked by diversity and dynamism. Since its founding, Ymagis has converted over twenty operators representing thirtyfive cinemas and more than two hundred independent French screens to digital cinema through its flexible and tailored financing models that benefit all partners in digital broadcasting. Ymagis boasts support through non-exclusive agreements with Paramount, Disney, Fox and Universal to participate in financing the cost of digital conversions. The company has also signed a similar contract with the French advertising agency Censier Publicinex. Agreements are about to be made with other U.S. studios and distributors in France. The bright, high performance Christie CP2000-ZX projector offers Brilliant3D TM technology full 2K resolution triple flash for 3D. Contact us Visit our website at: Corporate offices Christie Digital Systems USA, Inc. USA Cypress ph: Christie Digital Systems Canada, Inc. Canada Kitchener ph: Worldwide offices United Kingdom ph: Germany ph: France ph: +33 (0) Eastern Europe and Russian Federation ph: +36 (0) Dubai (United Arab Emirates) ph: +971 (0) India ph: Singapore ph: China (Shanghai) ph: China (Beijing) ph: Japan (Tokyo) ph: Korea (Seoul) ph: Independent sales consultant offices Spain ph: Italy ph: +39 (0) South Africa ph: +27 (0) We welcome your comments, questions, story submissions, updates and installation information. Send correspondence to: Chris Day chris.day@christiedigital.com Kino Notes is published 3x a year by Christie and distributed in print to our cinema partners and customers. We wish to thank our customers for their support in producing this newsletter. No part of this newsletter may be reproduced in whole or in part without the written consent of Christie Christie Digital Systems USA, Inc. All rights reserved. All brand names and product names are trademarks, registered trademarks or tradenames of their respective holders. Printed in Canada on recycled paper. CHRI 9503 Jun09

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