Cinedigm Divests Core Technology Services Inc. and Ezzi Net Webhosting Business

August 12, 2010

Source: Cinedigm

Sale of Managed Services Division Businesses Strengthens Focus on Digital Cinema

Cinedigm Digital Cinema Corp. announced that it has sold the two components of its Managed Services Division, Core Technology Services Inc. ("Core") and the Ezzi Net webhosting business to a company formed by a member of the management team of the division. This divestiture will allow Cinedigm to further focus on its digital cinema-related businesses.

The purchaser paid Cinedigm $268 thousand in cash and will provide service credits of $1.15 million in services to Cinedigm in exchange for the stock in Core and for sole ownership of the Ezzi Net webhosting business. These businesses currently host Cinedigm's websites, and provide networking and other information technology services to Cinedigm.

Gary S. Loffredo, Interim co-CEO and General Counsel, commented, "Cinedigm is seeking to simplify its business structure and streamline its assets in a way that suits our overall digital cinema and out-of-home entertainment strategy. The Managed Services Division and the businesses within it are no longer central to Cinedigm's focus on digital cinema. Utilizing them for their services without the demands of ownership will serve both them and Cinedigm better."

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