XDC, 47.2% affiliate of EVS, signs agreemnts wi...
Liège (Belgium) / Cannes (France), May 23, 2008. Following its very
successful digital services performed during the Cannes Film Festival
2008, XDC, the leading digital cinema service company in Europe and
47.2% affiliate of EVS Broadcast Equipment S.A. (Euronext Brussels:
EVS.BR, Bloomberg EVS BB) (Pinksheets: EVBEF), has announced today
the signature of non-exclusive long-term agreements with Warner Bros.
Entertainment Inc., Paramount Pictures Corporation, Twentieth Century
Fox Film Corporation and The Walt Disney Studios to co-finance the
future deployment of maximum 8,000 DCI-compliant digital cinema
installations in 22 European countries. The roll-out period under the
agreement shall last for a maximum of 5 years while each digitized
screen shall be co-financed over a period of maximum 10 years. Those
agreements are co-financing more than 65% of the value of digital
exhibition systems made of projectors, servers, applications and
services, for a maximum estimated global investment of EUR 600
million.
These agreements mark and ease the beginning of the large scale
deployment of digital cinema in Europe. For XDC, the next steps are
the negotiation of comparable agreements with European movie
distributors, the sale of this co-financing proposal to cinema
exhibitors across Europe and at last, both equity and debt raising to
fund the digital roll-out phase.
This infrastructure deployment will also help XDC to develop its
other activities: first, the design and sale of cinema servers and
software applications, secondly, the installation and maintenance of
complete digital cinema systems for exhibitors, and thirdly, digital
content processing and distribution services for movie distributors
and advertising sales houses.
There is a global potential of 35.000 screens to digitize across
Europe.
XDC Signs Digital Cinema Deployment Agreements
with Warner Bros. Entertainment Inc., Paramount Pictures Corporation,
Twentieth Century Fox Film Corporation and The Walt Disney Studios
XDC, the leading digital cinema service company in Europe, has signed
non-exclusive long-term agreements with four (4) major distributors
to deploy 8,000 upcoming DCI-compliant digital cinema installations
across Europe.
Cannes Film Festival 2008 - Warner Bros. Entertainment Inc.
("Warners"), Paramount Pictures Corporation ("Paramount"), Twentieth
Century Fox Film Corporation ("Fox") and The Walt Disney Studios
("Disney") will support XDC, acting as a Deploying Entity, in order
to roll out and fund digital systems for theatrical presentations in
several countries in Europe. Under the terms of the agreements,
Warners, Paramount, Fox and Disney have independently agreed to
supply European exhibitors with their feature films in digital form
for projection on the digital screens, as well as temporarily
contribute to the financing of XDC's DCI-compliant digital cinema
projection systems.
The agreements with Universal Pictures and Sony Pictures are in a
very advanced stage and are expected to close shortly.
Veronika Kwan-Rubinek, President, International Distribution for
Warner Bros. Pictures commented: "Warner Bros. has established a
strong working relationship with XDC over the last few years,
supplying more digital releases in Europe than any other studio.
This is the first digital cinema deployment agreement for Warner
Bros. Pictures International, and I'm pleased to be crossing this
milestone with a company as experienced and committed as XDC."
Andrew Cripps, President for Paramount said: "Paramount is delighted
to have reached this agreement with XDC to deploy DCI-compliant
digital projection systems across Europe. We look forward to working
together to bring digital cinema to exhibitors and consumers alike,
which we believe will help to expand and improve the experience of
going to the cinema."
Paul Hanneman and Tomas Jegeus, Co-Presidents of Twentieth Century
Fox International, jointly commented: "This agreement with XDC
represents another significant plan to finance and roll out
DCI-compliant digital projection systems across Europe. Fox remains
committed to the transition to a digital cinema platform and looks
forward to supplying its movies to DCI-compliant digital projection
systems installed by XDC. We are delighted to collaborate with XDC
staff, which has the experience and technical expertise to manage
this process."
Anthony Marcoly, President of Sales and Distribution for Disney,
stated, "Digital cinema represents the absolute best and most
enjoyable way to experience motion pictures, and we're excited to be
working with XDC as they expand the number of theaters capable of
exhibiting films digitally. XDC's commitment to install
DCI-Compliant digital cinema systems throughout Europe is great news
for moviegoers, and provides Disney and the other Studios the ability
to release films in the highest quality digital format possible.
These XDC D-Cinema installations are also 3D-ready, which means more
great 3D experiences for European moviegoers. With our latest 3D
animated feature, 'Bolt,' due to arrive at the end of this year, and
more than 10 other Disney 3D titles already in the pipeline,
audiences are in for some amazing new entertainment in the very near
future."
Serge Plasch, Chief Executive Officer for XDC said: "We are very
happy to announce these milestone agreements which offer European
exhibitors a viable business model to convert their screens to
digital cinema. The support of Warners, Paramount, Fox and Disney is
a key factor for XDC and will allow us to keep our momentum in
Europe, where XDC, along with over 120 staunch pioneer customers have
shown that commercial digital cinema works."
"Successes like this are the result of great team efforts. XDC thanks
and recognizes its team members for their unflagging business,
technical and legal support during the negotiations. John Birchell
Hughes, our Senior Vice President, has guided us on the exciting and
challenging journey that produced these four agreements. We are now
working intensively on enhancing our products and services in order
to offer the best solutions to our first customers who will start
their deployment plans within the next 12 months," concluded Bernard
Collard, Executive Vice President for XDC.
For more information, please contact:
Jacques GALLOY, Director & CFO
Geoffroy d'OULTREMONT, Investor Relations & Corporate Communications
Manager
EVS Broadcast Equipment S.A., Liege Science Park, 16 rue du Bois
Saint-Jean, B-4102 Ougrée (Liège), Belgium
Tel: +32 4 361 70 14. E-mail: corpcom@evs.tv; www.evs-global.com