DG2L Releases World's First MPEG-4 Digital Cinema System; Lands Seven-Figure Deal to Launch New Film Distribution Service.

Entertainment Editors/Business Editors/High-Tech Writers

NEW YORK--(BUSINESS WIRE)--Dec. 16, 2003

Today, DG2L Technologies Ltd, a premier provider of next-generation digital media technologies, became the first company ever to announce an MPEG-4 based end-to-end digital cinema distribution and presentation system. In a separate announcement today, DG2L also announced that Entertainment Cinema Networks (ECN), a service provider to theatrical distributors of film, has selected DG2L Digital Cinema System to launch its digital film distribution service in India.

"Today is an exciting day for DG2L and the MPEG-4 community," said Ankur Sheth, CEO of DG2L. "With unprecedented HD image resolution, coupled with state-of-the-art piracy protection and at the lowest cost in the industry, DG2L sets the bar for digital film distribution and presentation. I'm delighted to say that the release of our DG2L Digital Cinema System is already generating tremendous excitement in the entertainment industry."

The DG2L Digital Cinema System is a breakthrough technology that distributes and presents digital cinema-quality motion pictures, trailers, advertisements, and other audio/visual programs via satellite and physical media to theaters around the world. Based on the industry leading open MPEG-4 compression standard, DG2L Digital Cinema delivers High Definition (HD) Video at 1080P resolution at the lowest bandwidth imaginable and at the lowest cost. The DG2L Digital Cinema System also incorporates an industry leading encryption engine along with High Definition Content Protection (HDCP), providing the most advanced piracy protection.

MPEG-4 -- The Next Big Thing

MPEG-4 is a next-generation compression format for video and audio developed by the Motion Pictures Experts Group. Touted by industry luminaries as the "next big thing to revolutionize digital media", MPEG-4 is an open, scalable standard that delivers the highest quality video and audio at the lowest bit rate. Its object-orientation allows Hollywood studios to take significant steps forward in protecting movies against piracy. MPEG-4 is the natural successor to MPEG-2. DG2L is among the pioneering companies to engineer technologies based on MPEG-4.

DG2L Offers Film Industry Unprecedented Reliability, Quality and Value

The digital cinema revolution is changing the way that content owners and theaters do business. To date, economics, piracy protection, image quality, and reliability have been the key hurdles for wide-scale deployment. DG2L Digital Cinema system addresses these challenges with a highly reliable end-to-end system that simultaneously meets the goals of distributors, exhibitors, the creative community and movie-going audiences.

For distributors DG2L Digital Cinema System offers:

-- Significantly reduced shipping, delivery and assembly costs;

-- Improved editing and production processes;

-- State-of-the-art piracy protection and format

interoperability.

For the creative community DG2L Digital Cinema System offers:

-- Preserved image and sound integrity;

-- Increased sound track capabilities for diverse population

centers;

-- Accurate representation of creative intent;

-- Seamless interfacing with existing screens and sound systems.

For movie audiences DG2L Digital Cinema System offers:

-- A pristine digital experience at every showing;

-- Diverse and multi-lingual content choices;

-- Enhanced sound and image quality.

"Congratulations to Mr. Sheth and the DG2L team for their tremendous accomplishment," said Jagit Singh Kohli, Chairman of Entertainment Cinema Networks. "Today, with the release of the DG2L Digital Cinema System, DG2L is ushering in the next frontier in digital media distribution."

About DG2L

Founded in 2001, DG2L Technologies Ltd. is a premier provider of next-generation digital media technologies. The privately held company is one of the first in the world to engineer technologies based on MPEG-4 standards. Headquartered in Singapore, with marketing and sales operations in the United States, DG2L's cutting-edge products are developed in Mumbai, India at DG2L Labs, Mumbai. For more information about DG2L, please visit www.dg2l.com.

For customers interested in learning more about DG2L and our products:

Global: [phone]

United States: 212-697-2007

For press only:

425-576-5424; [e-mail]