Boeing Digital Cinema Surpasses 10,000 Screenings, Demonstrates Live Streaming Capability.

Business/Entertainment Editors

ST. LOUIS--(BUSINESS WIRE)--Oct. 31, 2002

In less than five months, Boeing Digital Cinema, based in El Segundo, Calif., has surpassed 10,000 screenings and continues to add approximately 100 screenings per day in markets across the United States and in London.

Among the seven feature films, from five studios, transmitted by Boeing Digital Cinema are: "Star Wars Episode II: Attack of the Clones," Fox/Lucasfilm; "Spy Kids II," Miramax; "Signs" and "Spirited Away ," Buena Vista Pictures Distribution; and "Banger Sisters," Fox.

Boeing Digital Cinema, a business unit of Boeing Integrated Defense Systems, allows the secure delivery of a movie file to thousands of theaters around the world via satellite and physical media technologies.

Boeing is leveraging many of its system integration, secure data transfer networks and associated expertise into emerging government and private-sector market opportunities. These market segments typically rely on network-based high-capacity data communications systems and centralized data storage and management tools.

"We are thrilled to have reached this milestone so quickly," said Frank Stirling, executive director, Boeing Digital Cinema. "This is another indication that studios, moviegoers and theaters are embracing digital cinema.

"We're bringing the cinematic experience closer to what was actually shot during filming, helping to protect the intellectual property of the industry and giving theaters a competitive marketing advantage to attract larger audiences. We're seeing people lining up for digital cinema while screens with film at those locations have seats available."

Boeing Digital Cinema recently demonstrated its live streaming capability by bringing highlights of concerts, sporting events and a Broadway show to theaters in central Florida at more than 50 megabits per second. These events were shown using cinema-grade digital equipment and originated in Los Angeles via satellite transmission.

Boeing Digital Cinema moviegoers consistently enjoy clear images, free of all the defects typically associated with 35-millimeter film such as scratches, dirt, mechanical jumps and other degradation.

Global film distribution costs the entertainment industry more than $2 billion a year and some analysts believe 75 percent of these costs could be saved by shifting to digital delivery. The Boeing system provides secure end-to-end transmission using proven encryption technology.

From encryption upon receipt of content to decryption at projection in designated theaters, Boeing's end-to-end multi-layered security system ensures protection at each step of the process to reduce the risk of film piracy and protect the intellectual property of the industry.

A unit of The Boeing Co., Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. With headquarters in St. Louis, Boeing Integrated Defense Systems is a $23 billion business. It provides systems solutions to its global military, government and commercial customers.

It is a leading provider of intelligence, surveillance and reconnaissance; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in launch services.

Note to Editors: For an updated list of theaters, check this Web site http://www.boeing.com/defense-space/space/cinema/cinemasites.html.