Studio City and Laser Pacific in Strategic Alliance.

Business & Entertainment Editors

LAS VEGAS--(BUSINESS WIRE)--April 12, 2000

Studio City New York, LLC (SCNY), Manhattan's first fully digital and high-definition total content creation workplace, and Laser Pacific Media Corp. (Nasdaq:LPAC) have announced a strategic alliance and professional relationship.

The agreement offers each of the parties the full resources of the other. Laser has agreed to participate in the development and selection of the best technology and infrastructure available to Studio City and plans to establish an east coast presence at the new complex. For Laser Pacific, this agreement gives them a major presence in New York and the opportunity to be a part of new innovations in technology and production.

Located in midtown Manhattan, just steps away from New York's Times Square, Studio City New York plans to be a full service production facility containing five large production studios, post production related services, office space and uplink and downlink transmission capabilities. It will also offer a state-of-the-art HDTV mobile production unit, audience capabilities and ample broadband access.

The facility is designed for maximum efficiency in the production process, to provide content in multiple media executions and to be the leading provider of such new technology as digital compression and streaming video. SCNY will possess the flexibility to produce creative content in all existing and future media and transmit/distribute product.

Richard Benowitz, president of Studio City New York, said that the agreement represents a major step forward for SCNY. "Studio City New York is going to be the most comprehensive production facility ever built in New York.

"Teaming up with Laser Pacific, one of the most innovative and forward thinking companies in the world, with the technical and creative awards to prove it, will substantially enhance our own efforts. Personally, I'm delighted to be working with Laser Pacific."

Located in Hollywood, Calif., Laser Pacific Media Corp. is an established leader in high definition post production, having opened the world's first digital high definition facility in March of 1998. Laser Pacific is a leading supplier of film and video post production services to major producers, studios, networks and multimedia customers. Laser Pacific has received four Emmy Awards for outstanding achievement in engineering development.

Commented Emory Cohen, president of Laser Pacific, "The Studio City complex is going to be the ultimate production environment in New York. We see the opportunity to be a part of their success and to achieve our objective of building a base in New York."

According to Benowitz, discussions are currently underway in New York and California with other major media firms.