SOURCE: Thomson

August 29, 2006 10:03 ET

Thomson Continues Momentum for North American Digital Cinema Plan Through Major Agreement with National Amusements, Inc.

PARIS and BURBANK, CA -- (MARKET WIRE) -- August 29, 2006 --


Technicolor Digital Cinema to Install, Maintain Digital Projection Systems

at 120 National Amusements Screens in Select Markets, Including Boston, Los Angeles, and New York, Beginning in Fall of 2006

Paris, France and Burbank, Calif. -- August 29, 2006 -- Reinforcing its global leadership in digital cinema, Thomson (Euronext Paris: 18453; NYSE: TMS), through its Technicolor Digital Cinema business, today announced it has reached a strategic agreement with National Amusements, Inc., a world leader in the motion picture exhibition industry operating more than 1,500 screens in the U.S., U.K., Latin America, and Russia, to install and maintain digital cinema systems in National Amusements-owned and operated screens, in line with Digital Cinema Initiatives, LLC (DCI) specifications.

The agreement calls for Technicolor Digital Cinema, as part of its previously-announced beta test, to place state-of-the-art digital projection equipment in 14 National Amusements sites, reaching 120 screens located in select areas nationwide, including the Boston, Los Angeles, and New York markets. The installations began earlier this month at the new Cinema de Lux 14: The Greene in Dayton, Ohio, which opened on August 25, 2006. The companies are committed to continuing discussions regarding the deployment of digital cinema projection equipment throughout National Amusements' North American theatres

The addition of National Amusements to Technicolor Digital Cinema's beta test, and its growing roster of top-10 exhibitors, is noteworthy as the circuit is comprised in the United States of 1,066 state-of-the-art screens in high-traffic venues. National Amusements has among the highest per- screen revenue totals of any theatre circuit in the nation, and it is the fourth-highest grossing exhibitor in the U.S.

"We are extremely pleased to be working with National Amusements on this very important industry transition," said Joe Berchtold, president of Technicolor Theatrical Services, and head of Technicolor Digital Cinema. "With its impressive portfolio of theatres, and strong commitment to advancing the customer experience through the newest technologies, National Amusements is an ideal partner for Technicolor Digital Cinema as it aggressively moves ahead with its strategic equipment deployment initiatives."

"We are excited to be working with Technicolor Digital Cinema on their beta test of digital projection equipment in our U.S. theatres," said Shari Redstone, president of National Amusements, Inc. "Technicolor Digital Cinema's extensive experience and expertise in digital cinema will help us continue to provide our patrons with the highest-quality entertainment experience."

The agreement with National Amusements is part of Thomson's broader rollout of complete digital projection systems in up to 5,000 screens over the next 3-4 years. Thomson intends to equip at least 15,000 screens in the United States and Canada, through the initial rollout and additional phases, over the next 10 years.

All hardware and software placed in each National Amusements site will be installed in line with industry-standard specifications recently published by DCI. Furthermore, the Technicolor Digital Cinema plan is technology agnostic, allowing both exhibitors and studios to benefit from the best available technology, including both 2K and 4K projection. The Thomson- driven initiative encompasses an industry-wide business model and operating infrastructure addressing all aspects of the much-anticipated digital cinema rollout: full-output, long-term content commitments by multiple Hollywood film studios; the widespread deployment of digital projection systems with exhibitors, including National Amusements, Inc.; and a broad industry commitment for the installation, operation, and financing of those systems through a proven, experienced service provider.

As previously announced by Thomson, the company has signed digital cinema equipment usage agreements with DreamWorks SKG, Sony Pictures Entertainment, Twentieth Century Fox, Universal Pictures, and Warner Bros. to support its plans for the distribution of digital cinema content and systems throughout North America. Under the separate, long-term accords, each of these studios has agreed to distribute content digitally throughout the United States and Canada, and pay a virtual print fee to Thomson for screens equipped with Technicolor Digital Cinema systems, beginning in the third quarter of 2006. Thomson is currently in negotiations with other film studios to expand the range of its non-exclusive content agreements in North America.

About Thomson -- Leader In Digital Video Technologies

Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems to help its Media & Entertainment clients -- content creators, content distributors, and users of its technology -- realize their business goals and optimize their performance in a rapidly-changing technology environment. The Group is the preferred partner to the media and entertainment Industries through its Technicolor, Grass Valley, RCA, and Thomson brands. For more information: http://www.thomson.net.

About Technicolor Digital Cinema

Since its inception in 1999, Technicolor Digital Cinema has been a pioneer in the enabling and advancement of digital cinema initiatives. By actively working side-by-side with key digital cinema stakeholders as a technology enabler and service provider, Technicolor Digital Cinema is utilizing its breadth and depth of valuable industry knowledge and expertise to develop solutions for technologies and standards that will ultimately facilitate the global commercialization of digital cinema. Headquartered in Burbank, California, Technicolor Digital Cinema offers the most comprehensive set of digital cinema services and solutions, including compression, encryption, key management, secure distribution, storage, scheduling and playback, and maintenance and support. Additionally, the division works closely with major film studios to support current digital cinema releases. Technicolor Digital Cinema is an operating unit of Technicolor Electronic Distribution Services, part of the Services division of Thomson. Since 2000, Technicolor Digital Cinema has managed and distributed over 130 titles for eight studios, covering more than 400,000 digital presentations worldwide. For more information: http://www.technicolordigital.com.

About National Amusements, Inc.

National Amusements, Inc. is a world leader in the motion picture exhibition industry operating more than 1,500 screens in the U.S., U.K., Latin America, and Russia. National Amusements delivers a superior entertainment experience in theatres around the world under its Showcase, Multiplex, Cinema de Lux, and KinoStar brands. Based in Dedham, Massachusetts, National Amusements is a closely held company operating under the third generation of leadership by the Redstone family. National Amusements is also an equal partner in the online ticketing service, MovieTickets.com, and is the parent company of both Viacom and CBS Corporation.

Viacom is one of the leading global entertainment content companies, with world-class brands that include MTV Networks (MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, CMT: Country Music Television, Spike TV, TV Land, Logo and more than 100 networks around the world), BET, Paramount Pictures, DreamWorks SKG, Paramount Home Entertainment and Famous Music. CBS Corporation is a mass media company with operations in virtually every field of media and entertainment, with prominent brands including CBS, CW, Showtime, CBS Television Stations, CBS Paramount Television, King World, CBS Radio, CBS Outdoor, Simon & Schuster, CBS Digital Media Group, CSTV Networks, and CBS Consumer Products.

Media Contact Information:

+-------------------------+--------------------+--------------------+
|Thomson Media Relations  |                    |                    |
+-------------------------+--------------------+--------------------+
|Keith R. Pillow (North   |     +1 805 445 4254|keith.pillow@thomson|
|America)                 |                    |.net                |
+-------------------------+--------------------+--------------------+
|Martine Esquirou (Europe)|   +33 1 41 86 58 51|martine.esquirou@tho|
|                         |                    |mson.net            |
+-------------------------+--------------------+--------------------+
|Marine Boulot (Europe)   |  + 33 1 41 86 55 97|Marine.boulot@thomso|
|                         |                    |n.net               |
+-------------------------+--------------------+--------------------+
|National Amusements Media|                    |                    |
|Relations                |                    |                    |
+-------------------------+--------------------+--------------------+
|Wanda Whitson            |+ 1 781 461 1600,   |wwhitson@nationalamu|
|                         |Ext. 336            |sements.com         |
+-------------------------+--------------------+--------------------+
|Thomson Investor         |                    |                    |
|Relations                |                    |                    |
+-------------------------+--------------------+--------------------+
|Marie Boidot             |   +33 1 41 86 51 00|marie.boidot@thomson|
|                         |                    |.net                |
+-------------------------+--------------------+--------------------+
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