SOURCE: Thomson

July 06, 2006 08:06 ET

Thomson Reaches Digital Cinema Equipment Deployment Agreement in Europe with Kinepolis Group, Barco and Dolby

Boulogne Cedex -- (MARKET WIRE) -- July 6, 2006 -- Thomson Reaches Digital Cinema Equipment Deployment Agreement in Europe with Kinepolis Group, Barco and Dolby

Technicolor Digital Cinema to Deploy Digital Cinema Systems with Barco 2K DLP® Projectors and Dolby Servers in 130 Kinepolis Screens in Belgium

PARIS, France — July 6, 2006 — Thomson (Euronext Paris: 18453; NYSE: TMS), through its Services division, announced it has reached a strategic, long-term agreement with Kinepolis Group, NV, one of Europe's largest theatre circuits, and the leading exhibition chain in Belgium. Thomson's Technicolor Digital Cinema unit will install and operate systems in Kinepolis-owned and operated screens in line with Digital Cinema Initiatives, LLC (DCI) specifications. The agreement represents the first of its kind in Europe, and demonstrates Thomson's commitment to deploy digital cinema rollout on the European continent, in addition to North America.

Under the conditions of the agreement, Thomson will install Barco 2K projectors, based on DLP Cinema® technology of Texas Instruments, and Dolby Digital Cinema playback systems in 130 Kinepolis Group screens at 10 sites in Belgium. The company will convert approximately 50 percent of each of Kinepolis' Belgian multiplexes to digital cinema systems by early 2007, including its new eight-screen, fully-digital facility in Bruges opening today. Thomson will transition the circuit's remaining screens in Belgium by the end of 2007. The agreement specifically requires Thomson to deploy, maintain, and monitor all digital cinema systems deployed, including the Technicolor Digital Cinema proprietary theatre management system (TMS).

"Thomson is delighted to secure Kinepolis Group as its first European strategic partner for digital cinema," said Joe Berchtold, president of Technicolor Theatrical Services. "Kinepolis Group has been a dedicated supporter of digital technology for years, and it is deeply committed to making these revolutionary advances available to movie-going audiences in Belgium. We are also pleased to include Barco and Dolby's market-leading equipment that delivers the quality and reliability needed to make digital cinema an audience favorite. By leveraging Thomson's expertise and experience in the region, and capitalizing on Kinepolis Group's insight into European cinema markets, Thomson is extremely well positioned for making European digital cinema a reality in the near future."

"As a pioneering, innovative exhibitor for many years, and as the industry's first and most prolific European exhibitor to deploy digital projection systems in its multiplex network, Kinepolis Group is fully committed to the ongoing advancement of digital cinema," said Gilbert Deley, managing director of Kinepolis Cinema. "As a result, this partnership with Thomson's Technicolor Digital Cinema strategically supports the company's objectives to extend its industry leadership in this important arena, and to provide Kinepolis patrons with the highest-quality in-theatre experience possible. With its proven track record of success in this space, and its worldwide industry leadership and expertise, Thomson is the right partner for assisting Kinepolis Group in furthering its digital cinema strategy."

All hardware and software placed in each Kinepolis Group site will be generally compliant with industry-standard specifications recently published by DCI. Furthermore, the Technicolor Digital Cinema European plan is technology agnostic, allowing both exhibitors and studios to benefit from the best available technology.

Thomson is currently in negotiations with its film studio partners to complete digital cinema equipment usage agreements that cover digital content distribution to Technicolor Digital Cinema- operated systems in Europe. The company is also in ongoing discussions with other major European exhibitors to extend the deployment of digital cinema installations to other European countries beginning in 2007. Thomson expects to announce definitive agreements with studio and European exhibition partners in the coming months.

Today's announcement supports Thomson's strategic intent to strengthen its position as the world's leading provider of services associated with end-to-end digital content preparation, distribution, and exhibition. Thomson's intended role includes the management of the deployment of digital cinema projection systems throughout Europe, as well as the supply of related equipment and the delivery of supporting postproduction, network management, and distribution services to content owners.

About Thomson — Leader In Digital Video Technologies

Thomson (Euronext Paris: 18453; NYSE: TMS) provides technology, services, and systems and equipment 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 Kinepolis Group, NV

Since its formation in 1997 from the merger of Bert and Claeys, Brussels, Belgium-based Kinepolis Group, NV has evolved into the Belgian cinema market leader, and one of Europe's leading and most technologically-sophisticated theatre circuits. In 2005, the company entertained 22.6 million cinemagoers in over 300 screens located in Belgium, France, Spain, Poland, and Switzerland. Kinepolis Group intends to bring the ultimate cinema experience to a broad audience, and specific customer groups in European, multi-functional customer and family-focused cinema complexes. The company plans to accomplish this in a way that offers the highest quality and is profitable through an innovative and personalized approach. For more information: http://www.kinepolis.com.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

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|Press Relations Thomson  |                   |                    |
+-------------------------+-------------------+--------------------+
|Martine Esquirou         |  +33 1 41 86 58 51|martine.esquirou@tho|
|                         |                   |mson.net            |
+-------------------------+-------------------+--------------------+
|Marine Boulot            |  +33 1 41 86 55 97|marine.boulot@thomso|
|                         |                   |n.net               |
+-------------------------+-------------------+--------------------+
|Julie Dardelet           |  +33 1 41 86 65 24|Julie.dardelet@thoms|
|                         |                   |on.net              |
+-------------------------+-------------------+--------------------+
|Keith Pillow             |   +1 805 445 42 54|keith.pillow@thomson|
|                         |                   |.net                |
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|Investor Relations       |                   |                    |
|Thomson                  |                   |                    |
+-------------------------+-------------------+--------------------+
|Marie Boidot             |  +33 1 41 86 51 00|marie.boidot@thomson|
|                         |                   |.net                |
+-------------------------+-------------------+--------------------+
|Laurent Sfaxi            |  +33 1 41 86 58 83|laurent.sfaxi@thomso|
|                         |                   |n.net               |
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The full press release is available on http://www.companynewsgroup.com

The full press release is available on http://www.companynewsgroup.com

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