PRESS RELEASE

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London, 21 April 2015 - Cinema is set to become more personalised and engaging with the launch of CineCardz® - a revolutionary way for cinema-goers to send a unique, personalised message to someone special via the big screen. With CineCardz®, think greetings cards, think e-cards and now think bigger and better.

Cinema software company Arts Alliance Media and cinema innovation specialists Highlands Technologies Solutions have joined forces to launch CineCardz®, a product which allows cinema customers to book a personalised greeting for someone special in the audience to play out in front of a film screening of their choice. Arts Alliance Media will act as a worldwide partner for CineCardz®.

CineCardz® makes a visit to your cinema even more special, providing a unique offering that further enhances the customer experience. CineCardz® drives customer loyalty, increases frequency of cinema visits and increases incremental revenue. For the customer, they simply order a CineCardz® through the dedicated website as part of a standard ticket purchasing process. Customers can upload a message that is then converted to a 30-second animation DCP (Digital Cinema Package), sent electronically to the relevant cinema and automatically inserted into the right place in the pre-show playlist. One CineCardz® slot will be available for each scheduled screening at participating cinemas.

For exhibitors using Arts Alliance Media's Theatre Management System Screenwriter, there will be nothing to install but just an option to activate free of charge. For the others, exhibitors simply need to install an internet-connected CineCardz® box at each site. The box connects to the cinema server to manage insertion of the CineCardz® content into the playlist and to collect playback logs in order to confirm the screening. CineCardzTM operates on a revenue-share model, providing additional revenue to exhibitors as well as a more exciting experience for customers with no ongoing costs at all. The system uses a 2-step moderation process, first automated then validated by the exhibitor to ensure content matches exhibitor policy.
"We're really excited to launch CineCardz®, and can't wait to see it in action. Not only is it a new and unique feature for cinema customers to say I love you, congratulations, well done, happy mother's dayand many others, it's also very affordable and fun, adding excitement to the whole cinema experience." said Patrick Zucchetta, CEO of HTS.

John Aalbers, CEO of AAM added "We are big believers that the end to end cinema experience can and should be enhanced by making it more interactive with the aid of innovative software solutions. I am delighted to be partnering with HTS on something which is as fun as CineCardz® and at the same time creates new revenue streams for exhibitors. This is the beginning of some great, new things to come."

Participating exhibitors around the world are due to be announced shortly.

CineCardz® will be at CinemaCon booth no. 2406 as well as at Arts Alliance Media booth no. 2111 from 21 - 23 April.

About Arts Alliance Media
Arts Alliance Media (AAM) is a global leader in digital cinema software and services. We offer cutting-edge solutions in software as well as installation, maintenance and support across the cinema ecosystem.

AAM's software products include the SCREENWRITER Theatre Management System (TMS); PRODUCER - an enterprise TMS and content management system operating across the entire cinema circuit; LIFEGUARD - an enterprise system designed to monitor and manage hardware as well as power Network Operations Centres (NOCs); and ADFUSER - a campaign management tool to simplify cinema advertising and increase incremental revenues.
Our software touches over 25,000 screens worldwide across North America, Latin America, Europe, Africa, the Middle East and Asia Pacific while our NOC supports over 11,000 screens globally.

About Highlands Technologies Solutions
Founded in 2012, Highlands Technologies Solutions (HTS) is a spin-off of Doremi Technologies Europe, headquartered in Sophia Antipolis, France. HTS specializes in providing the cinema industry with new solutions that expand and leverage existing digital equipment.

HTS is targeting new trends and methods revealing the potential of the digital technology in commercial cinemas with solutions ranging from theater calibrations, measurements and high-end monitoring (Qalif solutions), to advanced digital signage with interactivity in the lobby and on the main screen (YouActive product line), and finally CineCardz® allowing the audience to address a special message to someone special on the big screen.

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PRESS RELEASE

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CINEMACON, Las Vegas (April 21, 2015) - GDC Technology Limited ("GDC Technology"), a world leading digital cinema solutions provider, is proud to announce that it has sealed a new server deployment deal with Jinyi Zhujiang Movie Circuit Co. ("Jinyi"), one of China's top 5 cinema circuits. Under the agreement, 200 units of GDC's flagship SX-3000 Standalone Integrated Media BlockTM ("SX-3000 IMBTM"), along with its Enterprise Storage solution, will be deployed across Jinyi's new multiplexes in 2015.

Established in 2004, Jinyi soon expanded to become one of the leading cinema chains in China, and now manages and operates close to 1,000 screens at over 200 locations across the country. Specializing in five-star luxury multiplex theatres, the company has an aggressive expansion plan that involves opening more than 200 new screens annually in the next 5 years. Jinyi has now enjoyed a 10-year partnership with GDC, having installed its first GDC server in 2005. In 2011, more than 200 units of GDC's SX-2000A Digital Cinema Server with Integrated Media Block (IMB) were deployed by Jinyi, making GDC the chain's number one digital cinema server provider. In addition to digital cinema equipment, GDC's TMS has also been deployed on a large scale for Jinyi since 2011, with this solution helping it to manage screens at multiple locations, including in remote areas such as Inner Mongolia.

"We are very impressed by the quality of GDC's products and services, and the success of GDC server deployments throughout the circuit in the past has certainly cemented the company's position as a partner in our expansion now and in the future," said Shou-wei Xu, General Manager, Project Command Center of Jinyi.

Dr. Man-Nang Chong, founder, chairman and CEO of GDC Technology, said: "We are grateful to have gained the trust of Jinyi again. We treat Jinyi like partner and we continuously strive to provide quality services and most cost-effective and innovative products to our customers."

About GDC Technology Limited (www.gdc-tech.com)
GDC Technology Limited ("GDC Technology") is a digital cinema solutions provider. GDC Technology develops, manufactures and sells digital cinema servers, content storage systems, theatre management systems and network operations center software for digital cinema. GDC Technology also provides a suite of digital cinema products and services, including integrated projection systems, 3D products, projector lamps and silver screens. GDC Technology's subsidiary, GDC Digital Cinema Network Limited, manages VPF for approximately 5,000 theater screens and 250 motion picture distributors worldwide.

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PRESS RELEASE

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April 21, 2015

Las Vegas, USA - Philips continues to expand its portfolio of Digital Cinema Xenon lamps and is pleased to show a new lamp model at Cinemacon. The new XDC 6501B is specifically designed for the Barco DP2K-32B and DP4K-32B digital cinema projectors and has been tested and approved by Barco.

Philips has released this new high performance 6500W Cinema Xenon lamp with the longest 100% warranty in the industry (600 hours). Thanks to the extremely wide operating power range, it is easy for cinemas to switch between 3D and 2D without changing the lamp house or defocusing the lamp. The XDC 6501B has exceptional arc stability and a highly robust cathode design providing low flicker levels throughout life.

Philips Digital Cinema Xenon lamps are especially designed for the demanding requirements of today's digital cinema projectors. Their high light output ensures optimum on-screen brightness, while a proprietary electrode design ensures high arc stability with sharp digital pictures. Long lifetimes and a highly robust design ensure lowest Total Cost of Ownership for digital cinema. Each lamp is customized per projector model to ensure the best performance.

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About Royal Philips:
Royal Philips (NYSE: PHG, AEX: PHIA) is a diversified health and well-being company, focused on improving people's lives through meaningful innovation in the areas of Healthcare, Consumer Lifestyle and Lighting. Headquartered in the Netherlands, Philips posted 2013 sales of EUR 23.3 billion and employs approximately 115,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming and oral healthcare. News from Philips is located at www.philips.com/newscenter.

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By Daniel Loria

A member of the National Association of Concessionaires (NAC) since 2005, Adam Gottlieb has been actively involved in a variety of activities for the industry association. Gottlieb first began collaborating with NAC through sponsoring the Al Lapidus Golf Tournament in 2004. He has continued to sponsor NAC events since, including the association's annual convention and regional seminar series. BoxOffice spoke with the concessionaire veteran to learn more about his career in the candy business (and beyond).

What's the role cinema has played in the concession business, and what has your experience been working with that part of the industry?

It's a fun industry, a very tight-knit group. For people who are supposed to be competitors, they do a nice job of working together, sharing best practices, and helping each other along. It's rare to see that kind of interaction in business and it's something I like to be a part of. I can sit with four or five customers at a time and tell them what we're doing and the successes we've had with food and things like that and not have a fear that they're really going to have a problem talking together.

What are some of today's consumer trends?

I'll never forget when I first started working in the theater business. I walked into Crowne Theaters, a buyer that's no longer in the business. I thought I was going to show them everything out there that would make sense for theaters. I'll never forget he told me, "You know, Adam, thanks for coming, but I care about selling soda and popcorn and I don't really care about anything else." It crushed me because I thought I was going to show this guy all these new things he could do, and he didn't have any interest. Fast forward 15 or 16 years, almost everybody's looking for alternatives to the candy, popcorn, nachos, and soda that have always been the backbone of the industry. The changes have really come with expanded food menus, more hot foods.

Apart from the aforementioned popcorn and soda, what are some of the other staples?

The candy mix hasn't really changed. When vendors come to me and they think they've got the greatest new item to go into the theaters, I tell them how hard it is to get a new item to take off in theaters. My feeling is you go to the movies and you eat what your parents ate when they went to the movies. And they're probably eating the same stuff your grandparents ate at the movies. There's a lot of stuff that does very well candy-wise at theaters that doesn't really sell in the rest of the industry. Buncha Crunch is a very strong item, and you don't see it in retail. The last item to really hit it big candy-wise at theaters and have any staying power was Sour Patch Kids, and they were introduced when I was a kid going to the movies. They're still popular now because you've got kids who love eating the sour stuff at the movies, and you've got their parents who were the first generation to be introduced to sour candies. That's the last time the candy picture really changed.

Are vendors diversifying their offerings to meet the demand for expanded concession options, or are they sticking with what they do best in the ever-lucrative candy market?

It's a combination of both. I think that there are people going with the full-on in-theater dining concept. And there are people going with the chicken fingers, french fries, and corn dogs that can be prepared and served right from the concession stand as opposed to having a wait staff and runners bring it to someone's seat. I think there will be certain locations that can have and sustain the eat-in dining. I'm not sure it's going to be everyone that's into it now; I think you may see some people get out of it. I think it's going to be a mix of that and more of the casual, meal-replacement type thing that can be served at the concession stand. As far as candy goes, I haven't seen a lot of changes in the 17 years I've been doing it and not a lot of long-lasting changes. You'll see a lot of items that can pop up and do well for a short period of time, but I think you're ultimately going to be looking at a very similar mix to what you have now.

Different countries have different concessions, and the demographics in this country are changing rapidly. Do you think we'll see that shift reflected in the concession business in the next 10 to 15 years?

I think over time you will see a change. I can speak from what I've seen on the retail side of our business more than the theaters. Take Hispanics for example: if 30 percent of your clientele or more is Hispanic, you can do really well by catering to that demographic and putting a Hispanic candy set into a store for retail. I think you're going to see similar numbers or maybe even higher numbers on the theater end to really see that change for a couple of reasons. If 30 percent is what it takes to make it work in retail, it may need to be a little higher at a theater because I don't think you're seeing the same number of people buying concessions in a theater as in a retail store. I think to do a demographic-based food menu it has to be more than just candy. If you don't have a real high percentage of a population that's buying ethnic prepared food, I think your waste will be too high to really get into anything other than packaged ethnic foods. I think we will see a change as the demographics continue to change, I'm just not sure how quickly or how widespread it's going to be. We have had some customers who've brought in ethnic items, for example samosas for the Indian population or spicier items for the Hispanic population. What we've found, and I'm sure this is not across the board, but most of those experiments end up failing because there's just not enough buy-in and not enough usage.

Is there a secret to having a successful and profitable concession stand at the movies?

Part of it is having it staffed well, which is always tricky for any retailer. Especially going to a theater, people only have a certain amount of time they can spend before they get their seats. The challenge is that exhibitors are trying to keep payroll low, so it's not always possible to staff correctly during those peak times. The better your staff at the concession stand, I think the more successful you'll be as far as sales. The question is can you adequately balance that against your labor cost. And then there's having it properly signed, and making sure whatever you're running, static menu boards or digital menu boards, really calls out what you're trying to do at the stand. The customers that highlight their combos and offer a big variation of combo choices for their customers seem to sell more product, and they're showing a value to the customers, whatever that savings is with the combo-or the perceived savings, because sometimes you'll have a combo up there and there really isn't a tremendous savings to the customer, but just seeing it on the board triggers a buying impulse, and they're thinking instinctively that they're going to get a deal because that combo exists. The other thing is always making sure your stands look full and clean. It goes back to the same thing you'll see in retail: no one wants to shop an area that looks like it's been picked clean and going out of business. It's a combination of the presentation, the way the stand looks, the products that you're offering, and how you're promoting them.

 

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By Alex Edghill

Monday Morning Update: Star Wars: The Force Awakens was in charge on Facebook this past week as it rose a hefty 242k new likes. The jump was thanks to its newly released trailer which dropped late last week. Such a big increase for a page that already had over 13 million likes is hugely impressive and just yet another indicator as to how big this could be later this year. After its first trailer debuted in the end of November last year it rose only 80k Facebook likes, so it is picking up steam here as time goes on which is unusual but very positive.

Terminator Genisys tried to make the most of its new trailer this past week as it rose 66,151 likes. Not an overwhelming number by any means, especially as its total like number is still under 1 million. The trailer also released a major plot spoiler (I won't repeat it but its a doozy) so it was much more notable than your typical follow-up trailers. Despite a decent marketing spend, including a Super Bowl trailer and a franchise name that is one of the most storied in box office history it has failed to really catch on in social media. The lack of numbers indicates that the franchise is showing its age and failing to connect with younger audiences which it needs to expand and spawn further sequels. Based on the early numbers it might have a hard time passing the $44 million it needs on opening weekend to become the biggest opening Terminator of all time.

Jurassic World released a new trailer today which is heating up on Twitter and Facebook so I think it should post a nice hefty gain for my next week column. It managed to top 50k new likes this past week solely based on anticipation for the new trailer.

Facebook Top 5 Movies by Like Increase for the last week Ending Sunday April 19th

Rank Release Movie Likes Previous Change % Change
1 12/18/15 Star Wars: The Force Awakens 13,392,287 13,150,590 241,697 1.84%
2 07/01/15 Terminator Genisys 880,433 814,282 66,151 8.12%
3 05/01/15 Avengers: Age of Ultron 13,552,740 13,488,044 64,696 0.48%
4 06/12/15 Jurassic World 5,734,228 5,679,771 54,457 0.96%
5 04/24/15 The Age of Adaline 266,066 228,327 37,739 16.53%

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Please check the methodology page for information about our Twitter project or here for historic data.

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