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Cinedigm Digital Cinema Corp. (CIDM) Signs Agreement to Assist ICAA with Rollout of Digital Systems in Independent Australian and New Zealand Cinemas

|Includes: Cinedigm Corp. (CIDM)

Cinedigm Digital Cinema Corp. yesterday announced the signing of an agreement with ICAA to be the preferred integrator to advance the digital rollout of cinema in Australia and New Zealand. The agreement with ICAA, the Independent Cinemas Association of Australia, calls for Cinedigm to provide Virtual Print Fee (“VPF”) Contracts, VPF Administration, Theatre Management Systems (NYSE:TMS) and other support resources for ICAA and its members as they deploy digital services.

A Virtual Print Fee (NASDAQ:VPF) is a subsidy used globally to help finance the digital conversion of film. Distributors can save substantially on the costs of shipping film prints and use the savings to pay for digital equipment. Film distributors are required to have an integrator representing multiple individual exhibitors. This deal advances the digital rollout in Australia and New Zealand while also moving the ball forward worldwide.

“We are thrilled to put our experience and expertise to work with ICAA in Australia and New Zealand,” said Chris McGurk, Chairman and CEO of Cinedigm in a press statement. “We look forward to helping the ICAA member exhibitors bring the many benefits of digital cinema, including 3D programming, live sporting and music events and alternative content programming to their current movie-going consumers.”

ICAA’s members have nearly 500 screens across 110 cinema locations in Australia, ranging from small rural locations to large multiplexes in major metro areas. In 2010, ICAA had a plan to work with Omnilab Media Cinema Services Pty Ltd. for the management and administration of the VPF and for provision of a digital distribution platform to all screens, but the deal did not get completed.

“On behalf of ICAA, I would like to thank Omnilab for their hard work in progressing a VPF scheme for independent cinemas in Australia and New Zealand. ICAA welcomes this new partnership with Cinedigm which we believe will deliver substantial benefits for independent cinema operators in Australia and New Zealand,” said Kieren Dell, President, ICAA in the joint press release.

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