Boeing Digital Cinema Capability Ready for Viewing; Demonstration Set for ShoWest 2001 Convention in Las Vegas.

Business & Entertainment Editors/Technology Writers

LOS ANGELES--(BUSINESS WIRE)--March 5, 2001

Boeing digital cinema, a capability that enables same-day delivery of digital media via satellite to multiple movie theaters, is ready for viewing.

The service will be demonstrated at the motion-picture industry's ShoWest 2001 convention from March 5-8 at Bally's and Paris hotels in Las Vegas. Boeing digital cinema is a service of Boeing Satellite Systems Inc. (BSS), a unit of The Boeing Co. (NYSE:BA).

"When we first demonstrated the capability to transfer digital film with celluloid quality by satellite last November, we were in effect showing a `blueprint' for how the technology works," said Tig H. Krekel, president of Boeing Satellite Systems.

"At ShoWest, we'll unveil the `model home' of this, our leading- edge application of satellite services in the delivery of first-run films and alternative media content."

To demonstrate Boeing digital cinema at ShoWest, a 1,500-square- foot exhibition space will be transformed into a walk-through simulation of the entire process of selecting, delivering and exhibiting digital motion-picture and alternative content.

Through an alliance with Hollywood Software Inc., Boeing digital cinema demonstrates the company's market-leading distributor system, TDS2000, and its newly launched Exhibitor Management System, EMS, which provide both distributors and exhibitors with a bundled solution of content management software and digital distribution services.

By providing a fully integrated, end-to-end solution that manages the planning, booking, security, delivery and accounting of digital cinema engagements, Boeing digital cinema is pioneering a capability that is certain to benefit the future of the theatrical industry.

Large exhibition circuits and independent operators alike will see how Boeing digital cinema can transform available theaters into multipurpose entertainment venues through improved access to film libraries as well as various types of alternative programming.

"We'll be prepared to hold serious discussions of initial order inquiries at ShoWest," Krekel said. "We will also graphically demonstrate the benefits of Boeing digital cinema: high-quality, error-free, cost-effective and highly secure film distribution."

The digital cinema service relies on proven Boeing satellite technology, honed during the company's more than four decades in the satellite telecommunications field. Boeing digital cinema is backed by BSS' years of secure data delivery for the U.S. government and incorporates the latest in big systems satellite communication design and technology.

In addition to first-run films, a theater outfitted with the Boeing digital cinema system can also enhance its revenues by screening alternative media. This means that sporting events, Broadway plays, rock concerts and corporate training or distance learning can be included in the mix of offerings at a local theater.

"With this technology, first-run movies and alternative media can be digitally simultaneously distributed to your neighborhood theater, and unlike film stock, the digital film file quality won't degrade after multiple screenings," Krekel said.

"What the moviegoer sees is high-quality, digital programming, every time. What the chain or independent theater owner receives is the best quality content, stored in digital format, that is complete, consistent and programmed for a defined number of airings."

BSS is the world's leading manufacturer of communications satellites and a major provider of space systems, satellites and payloads for national defense, science and environmental applications.

The Boeing Co., with headquarters in Seattle, is the largest aerospace company in the world and the United States' leading exporter. It is the world's largest manufacturer of commercial jetliners and military aircraft, and the largest NASA contractor.

The company's capabilities in aerospace also include rotorcraft, electronic and defense systems, missiles, rocket engines, launch vehicles, and advanced information and communication systems. The company has an extensive global reach, with customers in 145 countries and manufacturing operations throughout the United States, Canada and Australia.