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

July 8, 2008

Source: Microspace Communications Corporation

Leading Distributor of Digital Cinema Via Satellite to Deliver Feature Films and Alternative Content to 3,000 Screens in the U.S., Canada and Mexico

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.

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