Panasonic D-5 HD Format Utilized to Produce Digital Cinema Version of "Star Wars: Episode 1 -- the Phantom Menace".

LOS ANGELES--(BUSINESS WIRE)--July 9, 1999--

--D-5 HD Plays Vital Production, Playback Role of

Filmless "Star Wars" Movie--

Panasonic Broadcast & Television Systems Company (PBTSC) (NYSE/PCX:MC) has announced that its Emmy-Award winning D-5 High Definition (HD) equipment has played a vital role in the post-production and playback of the digital projection version of Lucasfilm's "Star Wars: Episode 1 -- The Phantom Menace." Through mid July, four theaters (two in southern California, two in New Jersey) are digitally projecting the digitally-stored version of "The Phantom Menace."

Panasonic Broadcast's D-5 HD format, which sets the industry standard for high-quality HDTV recording, mastering and program distribution, was used extensively in the production of the digital master of the film, and Panasonic's AJ-HDP500 HD processor (incorporated in all D-5 HD VTRS) is teamed with Pluto Technologies hard disk-based HD Digital Video Recorder (DVR) for playback of the HD images at the four "Star Wars" test cinemas. The Panasonic HD Processor uses a mild 4:1 compression scheme to compress the digital video to a practical size for storage on the DVR.

The overall assignment of preparing the digital version of the film was given to the THX Digital Mastering Program. Directing the project was Dave Schnuelle, an engineering consultant to THX. The lead post-production facility employed was International Video Conversions Inc. (IVC), Burbank, CA. IVC, active in HD production since 1994, was one of the earliest adopters of D-5 HD, converting to the 1/2" format from 1" as soon as it became available. Currently, the facility owns six D-5 HD VTRs.

The task of transferring the film to an HD master was complex--and it had to be completed in a 30-day window, May 10 through June 10. Two digital projection systems were selected, Texas Instrument's DLP system and CineComm's system, which is based on a Hughes-JVC liquid crystal light valve technology.

"The projection devices are greatly different in many aspects, so we had to create two separate masters," Schnuelle explained. "We needed to locate a facility that had two identical set-ups, with telecines and D-5 HD VTRs. We did the actual telecine work, mastering to D-5 HD, at Modern Videofilm (also of Burbank).

"Tapes were brought back to IVC daily, and we'd look at them on a 24-foot screen, simulating the ultimate presentation in the theaters. Once color was approved, the tapes were taken to IVC's own digital restoration service, where they were played back into a Silicon Graphics Onyx computer, removing any residual dirt and scratches from the masters. The `cleaned-up' versions were edited with trailers and promos, then transferred to the DVR."

Schnuelle continued, "Panasonic D-5 HD VTRs were used extensively throughout the project, for mastering, editing, duplication and playback. The D-5 HD format's full 10-bit studio-quality recording is a requirement for digital theater mastering."

Panasonic, in conjunction with NHK, developed the AJ-HDP500 HD Intra-Field Compression Processor to provide reliable, affordable full 10-bit studio-quality HD recording. Migrating the D-5 format to HDTV applications, the Panasonic HD processor permits 4:2:2 sampled full bandwidth HDTV recordings. This Panasonic processor used in combination with a D-5 digital VTR delivers considerable cost-savings over existing HDTV recording alternatives.

The advanced JPEG Intra-field adaptive compression scheme delivers superb video quality for use in the most critical production, post-production and film transfer applications. Field-accurate editing, powerful slow-motion capabilities and the format's inherent two-hour recording time are all maintained in the HD recording modes.

Panasonic D-5 HD recorders have been selected the HDTV delivery format of choice by the major television networks, the mastering standard for HDTV telecine transfers by the major movie studios, and adopted from coast to coast by the nation's most prestigious post-production facilities.

PBTSC is a leading supplier of broadcast and professional video and audio products and systems, including the Astrovision(R) large-screen video display. PBTSC is dedicated to providing customers with comprehensive equipment choices, from Emmy Award-winning D-5 high definition and DVCPRO digital VTRs to ultra-bright presentation systems and advanced digital audio mixing consoles. For more information on Panasonic, visit www.panasonic.com/broadcast.