CinemaNow to Add Warner Bros. Entertainment Movies and TV Content to Download-To-Own Service; Agreement Expands CinemaNow's Selection of Premium Download-To-Own Movies and Adds Television Content.

MARINA DEL REY, Calif. -- CinemaNow Inc., the leading Internet provider of premium on-demand movies, today announced it has signed a licensing agreement with Warner Bros. Home Entertainment Group to offer select movies and television shows on a download-to-own basis through its Web site (www.cinemanow.com). Beginning today, movies from Warner Bros. Pictures will be available for purchase via electronic-sell-through, and future releases will be available on the site concurrent with the traditional "home video window." This also marks the first availability of Warner Bros. television content on a download-to-own basis in the United States.

This television and movie content from Warner Bros. Entertainment joins CinemaNow's continually expanding electronic-sell-through consumer offerings. Starting today, the Warner Bros. Television series "Babylon 5" and "Dukes of Hazard" are available on CinemaNow with additional titles to be added soon. CinemaNow customers can choose to download legal, permanent copies of individual episodes or entire seasons of the WBTV content.

"We're very excited to add Warner Bros.' content to our electronic-sell-through offering and to be the first to make Warner Bros. Television's product available on the open Internet for purchase," said Bruce Eisen, President of CinemaNow. "We believe that Warner's large library of outstanding motion pictures and television shows will be very attractive to our customers."

Movies initially offered on a download-to-own basis will include recent hits such as "Harry Potter and the Goblet of Fire," as well as catalog favorites such as "The Matrix" and "2001: A Space Odyssey." Movies available the same day as their DVD release will include "Firewall" on June 6th and "16 Blocks" on June 13th. CinemaNow's selection of both Warner Bros.' movies and television shows offered for electronic-sell-through will continue to grow in the months ahead.

"This is an important step for our U.S. distribution efforts," said Jim Wuthrich, SVP Digital Distribution, Warner Bros. Home Entertainment Group. "This is one more way for consumers to enjoy Warner Bros. high quality digital entertainment."

Customers can purchase and download a legal, permanent copy of a Warner Bros. Entertainment movie or television show for unlimited playback on the download device. All content will be copy protected by Microsoft's Windows Digital Rights Management (DRM) software.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com) is the global leader in broadband video-on-demand. CinemaNow legally offers content from a library of more than 4,000 new and classic movies, television programs, music concerts and music videos from 20th Century Fox, ABC News, Disney, HDNet, Lionsgate, MGM, Miramax, NBC Universal, Sony, Sundance Channel, Warner Bros. Entertainment and more than 250 other licensors for downloading or streaming. Founded in 1999, CinemaNow continues to be an innovator in the video-on-demand industry with the introduction of high-definition content. CinemaNow counts Menlo Ventures, Lionsgate, Microsoft, Cisco Systems and Blockbuster as investors.

About Warner Bros. Home Entertainment Group:

The Warner Bros. Home Entertainment Group was founded in 2005 to bring together all of the Warner Bros. Entertainment businesses involved in the digital delivery of entertainment content to consumers, including home video, online, wireless, games and anti-piracy and emerging technologies operations. WBHEG is a strategic recognition of the ongoing changes in the way consumers view entertainment product and seeks to maximize current and next-generation distribution scenarios to make the Studio's content available to audiences through as many channels, platforms and devices as possible.

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