Thomson Provides Studios Assistance with Security Services On VHS and DVD Screeners For 2003 ACADEMY AWARD Season.

Business Editors/High-Tech Writers

PARIS & CAMARILLO, Calif.--(BUSINESS WIRE)--Feb. 16, 2004

Technicolor's Solution to Create and Distribute Trackable VHS and DVD 

Screeners Enhances Industry Efforts To Target Film Theft

Thomson (Euronext Paris:18453)(NYSE:TMS), the leading provider of technology and service solutions for integrated media and entertainment companies, today announced the use of Technicolor's security solutions enabling trackable, individually-watermarked VHS and DVD screeners for 2003 Academy Award(R) consideration. Technicolor trackable VHS and DVD screeners were produced for select feature film studio customers as well as independent feature distributors.

"We saw an opportunity to assist the industry in its worldwide move against piracy and worked with content stakeholders to deploy a unique set of security services to facilitate the creation and delivery of screeners in a secure manner," said Lanny Raimondo, SEVP of Thomson Digital Media Solutions. "The result is a customized solution for home entertainment media manufacturing -- Technicolor trackable VHS tapes and DVDs -- available to content owners and distributors worldwide -- from major Hollywood studios to independent feature distributors and anyone in between."

Part of the company's strategy is to develop content protection solutions for its customers based on antipiracy, rights management or secured access technology and services.

Earlier this year in response to growing industry piracy concerns, Thomson began developing a new generation of watermarking and serialization services for home entertainment media. Working with prominent third-party technology partners, Technicolor leveraged its film release-printing and sophisticated home entertainment media manufacturing expertise to develop a customized security solution that watermarks, or embeds a uniquely identifiable number within the data stream of the VHS or DVD content. This watermark is only visible under certain conditions.

This security protocol features a forensically-trackable watermark traceable to the intended recipient of the tape. The technology embeds an individually serialized code into the video stream of the content of the VHS tape or DVD. The watermark is nearly undetectable to the naked eye and can aid content owners and distributors, using a unique serial number assigned to that particular tape or DVD, by identifying the intended recipient of the pirated or copied film.

Technicolor also worked with its studio and independent customers to facilitate delivery of the tapes to their intended Academy(R) voters and coordinated with customers to trace any incidents of pirated screeners. Technicolor's trackable technology was used to successfully trace a screener that was released over the Internet in January and led to the arrest of an alleged member of an Internet piracy ring.

Similarly, to enable secure screeners for the European Movie Art and Techniques Academy Award season, Technicolor manufactured Flexplay DVD screeners of the Gus Van Sant film "Elephant" for MK2, a leading independent movie rights holder in France. In December, the Flexplay screeners were sent to 3,300 Movie art and techniques Academy members in advance of the 2004 "Cesars" Awards held in Paris, February 21st, 2004.

A Flexplay DVD has a pre-set viewing window of 48 hours that begins when the disc is removed from its packaging and exposed to air. After this viewing window, the disc will become unreadable by a DVD player, offering anti-pass along protection to help address piracy concerns.

"Finding innovative ways to maintain the highest standards of security for Hollywood's most valued assets has been an integral part of Technicolor's storied history," stated Raimondo. "Over the years, Technicolor has responded to our customers' desire to ensure the security of their content, including hologram disc authenticating for CDs and DVDs, SecurROM and SafeDisc encoding for CD-ROM, CSS encoding for DVD, Flexplay DVDs and forensically-trackable film prints. Now, forensically-trackable VHS tapes and DVDs are the latest example of how we continue to meet the evolving requirements of the industry."

About Thomson

Thomson (Euronext Paris: 18453; NYSE: TMS) is the leading provider of technology and service solutions for integrated media and entertainment companies. By capitalizing on and expanding its leadership positions at the intersection of entertainment, media and technology, Thomson provides end-to-end solutions to content creators, video network operators and manufacturers and retailers through its Technicolor, Grass Valley, THOMSON and RCA brands. For more information: www.thomson.net