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# 1938 Baird

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Raleigh, N.C.—May 26, 2004

Microspace Completes Phase One of Digital Cinema Pilot Program By Delivering Shrek 2 Via Satellite

Pilot to Continue Throughout Year, Making Digital Cinema Reality for Many
Microspace Communications Corporation (Microspace), the leading provider of point-to-multipoint satellite services, announced today it has successfully delivered Shrek 2 via satellite, completing the first phase of a pilot digital cinema program with DreamWorks LLC. The digital film was delivered using Microspace's VELOCITY® satellite service.

"Microspace has been preparing for this over the past two years by participating in many test and demo situations with top entertainment industry companies and executives. We have now moved from the lab to delivering the summer blockbuster movie to a live theatre with paying customers," says Sam Matheny, manager of digital cinema development for Microspace. "We are proud to be working with DreamWorks to make digital cinema a reality and allow the public to experience the benefits."

Shrek 2 was distributed to Galaxy Cinemas in Waterloo, Ontario. The next phase of the program will involve gradually increasing the number of receive theatre sites.

"While the industry continues to perfect digital servers and projectors, we are still hand-delivering electronic files to theatres. Microspace's satellite delivery is timely, secure and seamless," says Mark Christiansen, head of operations for DreamWorks' distribution.

Microspace has been taking a leading role in digital cinema initiatives by being the first to deliver 4K Standardized Evaluation Materials (StEM) via satellite. It is one of the first satellite companies to obtain membership in the International Theatre Equipment Association (ITEA) and a sponsor of the Digital Cinema Laboratory's research and testing initiatives by donating a complete VELOCITY satellite network package. Microspace is also a member of the Society of Motion Picture and Television Engineers (SMPTE) and its DC28 committee, a forum to address technologies, and develop and recommend standards for digital cinema.

Concluded Matheny, "With the successful kick off of the pilot, we are beginning to move from the test phase of digital cinema to the commercial phase with so much more to come."
About Microspace Communications: Microspace Communications Corporation is a leading provider of point-to-multipoint satellite services for video, data and audio content distribution and operates one of the largest global business satellite broadcasting network, with more than a quarter of a million receive sites worldwide. Founded in 1988, Microspace is a pioneer in innovative broadband solutions for established and emerging enterprise applications, including digital signage, digital cinema, multimedia entertainment, corporate communications, radio broadcasting, wireless messaging and private data networks. Fortune 500 organizations and small companies alike rely on Microspace to deliver their business critical video, audio and data content. Microspace Communications Directory page 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 music 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. Dreamworks Directory page
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