CinemaNow and MDI Sign Licensing Agreement With NTT-DATA to Offer Video-On-Demand Service in Japan; CinemaNow Worldwide Network Continues Growth Across Asia.

Business/Entertainment Editors & High-Tech Writers

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Jan. 30, 2003

CinemaNow, Inc., the leading video-on-demand distributor of feature films over the Internet, today announced a licensing agreement with Media Design Institute, Inc. (MDI), a Japanese and American based multi-media company, to distribute the CinemaNow film library in Japan through NTT-DATA, Japan's largest systems-integrator, and its affiliate Solid Exchange, a digital content business enterprise. PatchBay(TM), CinemaNow's proprietary video-on-demand technology solution, will manage digital and territorial rights protection and generate detailed reports.

"Internet distribution of U.S. films in Japan represents a significant market opportunity and addresses a growing customer demand as the number of Japanese broadband subscribers rapidly increases," said Fred Sugano, president of Media Design Institute, Inc. "Working with CinemaNow and NTT-DATA, both recognized leaders in their respective fields, provides us the best way to maximize this opportunity and have an important influence on the growth of video-on-demand in Japan."

"We are delighted to be working with MDI and CinemaNow to provide a high-quality video-on-demand service in Japan," said Haruhiko Kato, senior executive manager of NTT-DATA. "We are sure that the combination of CinemaNow's film library and PatchBay technology, MDI and NTT-DATA will create great possibilities, and will also lead to further expansion of NTT-DATA's broadband content business."

NTT-DATA will offer select titles from CinemaNow's large film library via Solid Exchange's platform to ADSL, FTTH (Fiber To The Home), Broadband network PCs and Set Top Boxes. The films will be translated with Japanese subtitles and made available throughout Japan.

"Joining with NTT-DATA and MDI to introduce and drive adoption of Internet video-on-demand in Japan is the best way for us to reach this important and growing base of broadband subscribers," said Curt Marvis, chief executive officer of CinemaNow. "These relationships further underscore our position as the leading distributor and technology provider of licensed, fully secure online American film content throughout Asia."

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 the licensable technology solution. Current PatchBay(TM) licensors include such diverse partners as Walker Asia and Chunghwa Telecom (film distribution), NHL.com (sport programming), Phish (musical group), CenterSpan (peer-to-peer network) and Arescom (hotel broadband provider). CinemaNow is majority owned by Lions Gate Entertainment (AMEX:LGF).

About MDI

MDI (Media Design Institute, Inc.) is a Japanese and American multi-media company based in Marina del Rey, California and Japan for over 20 years. MDI, as a pioneer in new media enterprises, has been in business with most of the major Japanese media companies, by creating Web design for AOL Japan, supplying Video Disc works with JVC and Pioneer, CD-I and DVD-ROM with SONY and also DVD-Video with Panasonic, Toshiba and Hitachi. MDI has mainly developed its business with Interactive and Multimedia, and has also launched business activities as a direct content aggregator between Japan and Hollywood.

About NTT-DATA Corporation

NTT-DATA was separated from Nippon Telegraph and Telephone Corporation and became an independent entity in 1988. It provides information services with a focus on system integration and network system services. Recently, it has expanded its field of activity to include IT partner business that creates new business through the use of other companies' resources, and service provider business.