Twentieth Century Fox Signs Video-On-Demand Distribution Agreement with CinemaNow.

Entertainment Editors/Business Editors

MARINA DEL REY, Calif.--(BUSINESS WIRE)--April 3, 2003

CinemaNow Provides On-Demand Access to New Releases

and Library Films from Twentieth Century Fox

Twentieth Century Fox Film Corporation, a subsidiary of the Fox Entertainment Group (NYSE:FOX), and CinemaNow, Inc., a leader in Internet video-on-demand distribution and technology, today announced they have entered into an agreement to offer Fox films for download via the CinemaNow Website, www.cinemanow.com.

"We have long believed in the potential of the Internet as an effective system for delivering our movies. Our agreement with CinemaNow not only provides our audience with a convenient way to access our movies, but it also allows us to offer our products and services in a way that enhances the viewing experience of our customers," said Peter Levinsohn, Executive Vice President, Worldwide Pay Television and Pay Per View for Twentieth Century Fox. "We are extremely excited about the prospects of this new space and are delighted to be working with an industry leader in growing this business."

Two key factors in Fox's decision on this partnership were CinemaNow's understanding of the importance of protecting content in the online environment and its ability to promote movies in a manner not available in traditional distribution formats. PatchBay, CinemaNow's proprietary video-on-demand technology solution, already employed for online content distribution throughout the world, will facilitate all aspects of the films' distribution. This includes digital and territorial rights protection and comprehensive pay-per-view services.

Levinsohn added: "This is one more step in our efforts to offer our customers the entertainment they want in the new technology formats they desire. We expect our partnership to provide a legitimate alternative to combat the growing problem of online piracy, which has become the most critical issue facing our industry today."

"This agreement with Fox is of tremendous significance to CinemaNow, not only because Fox is one of the world's leading producers of feature film content, but also because of Fox's commitment to creating a positive partnership that will build CinemaNow into a profitable business for all involved," said Curt Marvis, CEO of CinemaNow. "Internet video-on-demand is poised for explosive growth in the coming years, and Hollywood studios are positioning themselves to take full advantage of the opportunity."

CinemaNow will offer Fox's new release titles the same day they become available via traditional pay-per-view outlets, while also making available previously released films from the extensive Fox library. The first-run titles to be made available include "Daredevil," starring Ben Affleck and Jennifer Garner; "One Hour Photo," starring Robin Williams; "The Banger Sisters," starring Goldie Hawn and Susan Sarandon; "Just Married," starring Ashton Kutcher and Brittany Murphy; as well as upcoming films such as "Phone Booth" and "X-Men 2." New release titles will be priced at $3.99 for 24 hours of unlimited viewing, and library films will be priced at $2.99 for 24 hours of unlimited viewing. All Fox titles will be made available in Microsoft's Windows Media 9 Series format.

The agreement was principally negotiated on behalf of CinemaNow by Executive Vice President Bruce Eisen and on behalf of Fox by Senior Vice President Worldwide Pay Per View and Video on Demand Jamie McCabe.

Twentieth Century Fox

Twentieth Century Fox is a subsidiary of the Fox Entertainment Group, Inc., 80.6% owned by the News Corporation Limited (NYSE:NWS). The Fox Entertainment Group is principally engaged in the development, production and worldwide distribution of feature films and television programs, television broadcasting, and cable network programming. Fox has total assets as of December 31, 2002, of approximately US$23 billion and total annual revenues of approximately US$10 billion. The Company's studios, production facilities, and film and television library provide high-quality creative content, and the Company's broadcasting and cable networks provide extensive distribution platforms for the Company's programs.

CinemaNow

CinemaNow, Inc., (www.cinemanow.com) is the global leader in Internet-based, video-on-demand (VOD) and subscription video-on-demand (SVOD) distribution and technology. Through its growing list of content partners, the CinemaNow Website has become the premier destination for the authorized downloading and streaming of feature films on the Internet. CinemaNow has also developed PatchBay, a proprietary video-on-demand content distribution and management system that runs the CinemaNow Website, and is available as a licensable technology solution. Current PatchBay licensors include such diverse partners as Walker Asia and Chunghwa Telecom (film distribution), NHL.com (sports programming), Phish (musical group), CenterSpan (peer-to-peer network) and Arescom (hotel broadband provider). CinemaNow is majority owned by Lions Gate Entertainment (AMEX:LGF).

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