CinemaNow Secures $20.3 Million Investment; Strategic Investment from EchoStar Communications Corporation, Index Holdings and Others Furthers Expansion of On Demand Distribution Services And Technologies.

MARINA DEL REY, Calif. -- CinemaNow Inc., the leading Internet provider of premium on demand movies, today announced it has secured $20.3 million in Series E financing led by new investors EchoStar Communications Corporation and Index Holdings. Previous investors Transcosmos, Cisco Systems, Lionsgate and Menlo Ventures also participated in the financing, marking the company's largest single round to date.

"The strong financial backing from established leaders in the technology, entertainment and investment communities will allow us to accelerate our growth and maintain our leadership position in digital distribution," said Mark Amin, chairman of CinemaNow. Added Curt Marvis, CEO of CinemaNow, "By establishing strong commercial agreements as part of the financing with EchoStar and Index, leaders in satellite and mobile services respectively, CinemaNow will remain on the cutting edge of new and innovative models defining the next generation of home entertainment."

In addition to new investors EchoStar and Index, CinemaNow continues to build on previously established strategic and investment partnerships as a result of this financing. Transcosmos established a partnership with CinemaNow for the CinemaNow Japan service launched in the spring of 2005, and this financing marks their first direct investment into the parent company here in the United States. Cisco Systems previously invested in CinemaNow to further initiatives in the consumer electronics and digital home industries, and this financing continues to build on that relationship. Lionsgate has established a strong identity for driving new and innovative distribution models and expects to continue to work closely with CinemaNow to bring content to consumers when and where they want it. Finally, Menlo Ventures is a highly regarded Silicon Valley venture capital firm with $3.9 billion under management and a 30-year track record of leading investments in high growth success stories.

"CinemaNow is leading the way in digital distribution and we see a bright future ahead for their business," said Mark Jackson, President of EchoStar Technologies Corporation. "We are also looking forward to working with CinemaNow directly on ways to deliver their robust content offering to EchoStar's more than 12 million subscribers."

"Our investment in CinemaNow continues our mission to bring all forms of content into the mobile distribution channel on a worldwide basis" said Yoshimi Ogawa, President of Index Holdings. "The potential for this distribution platform is limitless and we feel strongly that CinemaNow has the content, technology and partnerships to build it with us."

This Series E investment brings the total capital raised by CinemaNow since 1999 to more than $40 million.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com) is the leading Internet provider of premium on-demand movies and video content. CinemaNow legally offers downloads of more than 4,000 feature-length films, shorts, music concerts and television programs from more than 250 licensors including 20th Century Fox, ABC News, Disney, HDNet, Lionsgate, MGM, Miramax, NBC Universal, Sony, Sundance Channel and Warner Bros. Founded in 1999, CinemaNow counts EchoStar, Index Holdings, Menlo Ventures, Transcosmos, Microsoft, Lionsgate, Cisco Systems and Blockbuster as investors.