Ushio Inc. Reaches Agreement with Shochiku and Warner Mycal, to Introduce Promotion Program of Screen Digitalization

- Digitalization of All Screens-

Ushio Inc. (HQ: Tokyo; President and CEO: Shiro Sugata; “Ushio”) is pleased to announce that it has reached an agreement with Shochiku Co. LTD. (HQ: Tokyo; President and CEO Junichi Sakamoto; “Shochiku”) and Warner Mycal Corp. (HQ: Tokyo; President Millard L. Ochs; “Warner Mycal”) to introduce a program to promote screen digitalization. Under the program, all screens owned by Shochiku and Warner Mycal will be digitalized by the end of 2012.

Products manufactured by Christie Digital Systems, Inc., (“Christie”), a wholly owned subsidiary of Ushio Inc., will primarily be adopted for the Digital Cinema Projectors (“DCP”) to be used for the digitalization. In addition, Xebex Inc., a wholly owned subsidiary of Ushio Inc., will manage the products’ installation and maintenance.

The promotion program to be introduced was jointly formed by Ushio Inc. and GDC Technology Limited (HQ: Hong Kong), whose cinema servers are to be installed in this program. This program seeks to promote screen digitalization by significantly reducing the equipment investment that needs to be made by the exhibitors. Ushio established a wholly owned subsidiary, Japan Digital Cinema Support Inc. (JDCS), on February 14, 2011 to operate the program.

Japan has approximately 3,400 screens, of which only about 28% are digitalized.^*1 There are numerous advantages to screen digitalization, such as preventing deterioration in image quality, facilitating screening of 3D movies, and being able to screen content other than movies.

Christie has been selling DCP since 2000, and had installed more than 12,000 units worldwide as of June 2010. Ushio will seek to acquire a share of 60% or more in cinema complex digitalization in Japan, including installation of DCP under this program, by March 2014.

*1　As of the end of December, 2010 (survey by the Motion Picture Producers Association of Japan, Inc)

Christie Digital Systems, Inc. is a global visual technologies company and is a wholly-owned subsidiary of Ushio, Inc., Japan, (JP:6925). Consistently setting the standards by being the first to market some of the world’s most advanced projectors and complete system displays, Christie is recognized as one of the most innovative visual technology companies in the world.  From retail displays to Hollywood, mission critical command centers to classrooms and training simulators, Christie display solutions and projectors capture the attention of audiences around the world with dynamic and stunning images. Visit www.christiedigital.com.

A wholly owned subsidiary of Ushio, Inc. (Head office: Tokyo; JP: 6925). Established in 1991. Engaged in the sale, installation, and maintenance of digital cinema projectors and cinema servers and the provision of Theater Management Systems^*2. It also provides a 24-hour remote monitoring service through its Network Operation Center. http://www.xebex.co.jp/

*2 What is a Theater Management System?
A system to provide centralized control of screening in all screens of a cinema complex, to enable automation and rationalization of operations of the complete theater.　By controlling the digital cinema server installed for each screen, it facilitates distribution of digital cinema content, preparation and editing of screening schedules, monitoring of screening status, and other tasks from a single location.

Founded in 1895, Shochiku Co., Ltd. now operates 11 movie theatres and 91 screens, including joint ventures, establishing itself as a leading motion picture producer, distributor, and exhibitor in Japan. Shochiku, which has always been a pioneer, produced the first color motion picture in Japan and was the creator of the world’s longest-running feature film series. It has also become a symbol of enduring tradition as the exclusive promoter of the　Kabuki Theater in Japan. http://www.shochiku.com/

Founded in 1991, Warner Mycal Corporation is a joint venture between Time Warner group and Aeon Retail Co., Ltd. Ever since opening Japan's first cinema complex in 1993, the company has grown to operate 60 theatres 496 screens across Japan as of February 2011. With the introduction of "Digital 3-D Cinema" in 2005, the company has been promoting digital cinema, and concurrently introducing new technologies such as Japan's first D-BOX MFX seat (seat that moves in response to on-screen actions) and ULTIRA (consisting of a large format screen spreading all over the wall and 3D surround sound system) in 2010 to bring a variety of entertainments to the audiences. http://www.warnermycal.com/

GDC Technology (“GDC”) is a subsidiary of the Hong Kong publicly listed company - Global Digital Creations Holdings Limited.  As one of the leading global solution providers for digital cinema, media delivery and display markets, GDC has successfully delivered and installed digital cinema servers and advanced digital signage systems worldwide. GDC is currently the largest supplier of cinema servers throughout Asia and the second largest provider of cinema servers worldwide, serving its customers through offices in the US, Singapore, Hong Kong and China.  GDC also holds Virtual Print Fee (“VPF”) agreements with major US studios and acts as a third-party for the major deployment of digital cinema systems in Asia and North America. http://www.gdc-tech.com