CinemaNow Launches Enhanced Subscription Video-On-Demand Service; CinemaNow Offers New Users a Free 7-Day Trial of Expanded Subscription Service.

Business/Entertainment Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Jan. 10, 2003

CinemaNow, Inc., the global leader in IP-based video-on-demand distribution and technology, announced today the expansion of its subscription video-on-demand (SVOD) service, the "CinemaNow Premium Pass." To address growing customer demand for subscription-based media services and premier Web content, CinemaNow has increased the number of films included in the subscription package, increased the number of films available for downloading in addition to streaming, and re-designed the Web site interface to streamline the sign-up process and better accommodate subscribers. As part of this enhanced offering, CinemaNow is introducing a special introductory trial that provides new users with unlimited access to all subscription-based films at no charge and with no commitments for 7 days.

"The digital entertainment and broadband services industries are evolving rapidly. Customers now demand access to premier content on the Web -- and they're willing to pay for it," said Curt Marvis, chief executive officer of CinemaNow. "Our Premium Pass subscription has always been a great deal, and the value only grows as we increase the quantity and improve the quality of our content on a weekly basis. As an early leader in this emerging market, we're committed to advancing the industry by providing customers with the best possible video-on-demand experience."

As part of the free 7-day trial, users will have complete access to CinemaNow subscription offerings, including streaming and downloading capabilities for the films. Users who elect to continue their subscription will then be charged a $9.95 monthly fee for access to the ever-expanding library of titles. Most of the films available via the CinemaNow Premium Pass are also offered for purchase on an individual pay-per-view basis.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com) is the world leader in Internet-based video-on-demand (VOD) and subscription video-on-demand (SVOD) distribution and technology. CinemaNow has also developed PatchBay(TM), a proprietary video-on-demand content distribution and management system that runs the CinemaNow Web site, and is available as a licensable technology solution. Current PatchBay(TM) licensors include such diverse partners as Walker Asia and Chunghwa Telecom (film distribution), NHL.com (sports programming), Phish (musical group), CenterSpan (peer-to-peer network) and Arescom (hotel broadband provider). CinemaNow is majority owned by Lions Gate Entertainment (AMEX:LGF).