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Microspace Extends Successful Digital Cinema Pilot Program with Delivery of DreamWorks’ COLLATERAL


Raleigh, NC (August 11, 2004) – Microspace Communications Corporation (Microspace), the leading provider of point-to-multipoint satellite services, today announced that it has successfully delivered the DreamWorks LLC movie, Collateral, via its VELOCITY® satellite solution to select digitally-equipped movie theaters. The distribution, part of Microspace’s continuing digital cinema pilot program, follows its May 2004 VELOCITY delivery of Shrek 2.

“Microspace’s digital cinema initiative fully supports our own corporate strategy to provide the best movie presentation and best customer service possible. VELOCITY made the process easy for our projectionists,” said Pat Marshall, vice president of communications and specialty marketing for Cineplex Galaxy LP, owners of Galaxy Cinemas. The Galaxy Cinemas in Waterloo and Cambridge, Ontario, along with Famous Players in Vaughan, Ontario, participated in the Collateral distribution.

“Collateral was not filmed, but shot digitally,” says Mark Christiansen, head of operations for DreamWorks distribution. “Digital projection via Microspace’s satellite distribution gives audiences a pixel-by-pixel exact reproduction of director Michael Mann’s work.”

Microspace’s VELOCITY service is a solution for distributing video, data and audio content from one location to many. The technology has been tested and proven for the digital cinema industry, specifically in the Digital Cinema Laboratory, a unit of the Entertainment Technology Center at the University of Southern California (USC). Microspace donated a complete system to USC for testing in conjunction with other digital cinema technologies.

According to Sam Matheny, manager of digital cinema development for Microspace, “VELOCITY has proven its ability to distribute digital content in a cost-effective and efficient manner. We are putting this technology into action for the benefit of moviegoers and distributors and we are poised for growth. ”

Microspace plans to continue the pilot through the rest of the year by growing the network of theaters in key US markets.


About Microspace
Organizations that distribute video, audio and data content cost effectively and efficiently rely on Microspace Communications Corporation (Microspace), the operator of the largest business satellite broadcasting network in the world and the leading provider of point-to-multipoint satellite services. Microspace’s VELOCITY® satellite service enables affordable, reliable and secure distribution for a broad range of applications such as business television, distance learning, video on demand transport and storage, datacasting, and IP multicasting. Offered through an innovative pricing model, VELOCITY is available as a dedicated solution or as on-demand services, allowing a company to simply and affordably expand its bandwidth as needed. Microspace’s commercial customers include Muzak, Morgan Stanley, John Deere, LodgeNet and WSI Corporation. It also enables companies to serve the needs of government agencies such as the EPA, INS, FEMA, FBI and FAA.

Founded in 1988, Microspace is a privately-held company with headquarters in the U.S., a presence in Europe, and is a subsidiary of Capitol Broadcasting Company, founded in 1937. For more information, visit www.microspace.com.

About DreamWorks
Steven Spielberg, Jeffrey Katzenberg and David Geffen launched DreamWorks SKG in October 1994. Their vision was to create an artist-friendly studio to develop, produce and distribute superior film and television entertainment that would inspire and delight audiences worldwide. DreamWorks SKG is now a leading producer of live-action motion pictures, animated feature films, network, and cable television programming, home video and DVD entertainment and consumer products.

About Cineplex Galaxy LP
Cineplex Galaxy LP is a leading exhibitor of motion pictures in the entertainment industry. Headquartered in Toronto, Canada, Cineplex Galaxy LP currently operates 84 theatres with a total of 758 screens in 6 provinces across Canada. Cineplex Odeon Cinemas, Galaxy Cinemas and the associated brands are owned and operated by Cineplex Galaxy LP. There are 63 Cineplex Odeon Cinemas located in the major urban centres and 21 Galaxy Cinemas featured in mid-size markets. Proudly Canadian, Cineplex Galaxy LP is a public company traded on the Toronto Stock Exchange under Cineplex Galaxy Income Fund (symbol CGX.UN).

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