1. Electronic Projection Technology Welcome to today’s presentation on Electronic Projection Technology in the cinema industry Presented by Andy Milne Technical Director, Technical Audio Group NZ Ltd

2. Electronic Projection Introduction to TAGNZ Projection Technologies Projection Resolution Cinema Industry standards for digital cinema History of Digital Projection International Digital Projection International cinema products The future of digital Cinema DVD & HD demonstration clips Questions

3. Technical Audio Group NZ Ltd Technical Audio Group or TAGNZ is the New Zealand importer of a number of premium cinema related products including Digital Projection International DLP projectors and Martin Audio sound systems. Martin Audio is installed in New Zealand's premium cinemas, the Embassy in Wellington, the Civic in Auckland and a number of other intimate cinemas around New Zealand. Both companies manufacture in the UK and offer the best of British sound and imaging technology.

4. Technical Audio Group NZ Ltd Andy Milne trained as a BBC engineer and worked in studio engineering, live TV colour grading and telecine transfer areas as well as many years as a video tape editor. TAGNZ has a passion for the best in imaging and sound reproduction technology and we take great pride in working with our clients in the cinema industry to give an experience that keeps the public coming back. TAGNZ provides industry leading support and backup which is vital for the cinema industry.

5. Projection Technologies LCD Liquid Crystal Display 3 panels of liquid crystal sandwiched between glass Transmission technology Light level is analogue controlled LCOS or DILA or SXRD Liquid Crystal On Silicon 3 panels of liquid crystal sandwiched between a top layer of glass and a silicon / reflective backing Transmission technology via reflective backing Light level is analogue controlled DLP Digital Light Processing Single or 3-chip DMD’s (Digital Micro-mirror Device) Reflective technology Light level is digitally controlled using pulse width modulation

6. Technology Comparison LCD Domestic Quality Lower purchase cost Higher long term cost Liquid crystal panels age causing discolouration and uneven illumination Colour matching difficult Liquid Crystal has slow response time causing motion blur Lower contrast ratio than DLP Pixel structure more apparent than LCOS or DLP, low fill factor DILA or LCOS or SXRD Semi Pro & Pro quality Middle purchase cost Higher long term cost Liquid crystal panels can age causing discolouration and uneven illumination depending on technology used Pixel structure less apparent than LCD LCOS has faster response than LCD but slower than DLP Lower contrast ratio than DLP Single Chip DLP Upper domestic quality Middle purchase cost Lower long term cost True digital projection technology using pulse width modulation Minimal pixel structure due to very small inter pixel gaps Suffers from “rainbow” effect RGB sequential, 1/3 of light in use

7. Technology Comparison Professional quality, designed for commercial environments Higher purchase cost, Lower long term cost All available light in use, brighter Reflective technology, can handle heat load better than transmissive technology LCD or LCOS Capable of higher light output than LCD or LCOS Highest bit depth of any projection technology, over 4 trillion colours on screen True digital projection technology using pulse width modulation, noise free, digital colour and gamma correction Digital means stability of image over time Uniform light output and colourimetry over image area Minimal pixel structure due to very small inter pixel gaps Less temporal artefacts, no colour wheel, no “rainbow” effect Film like images 3 Chip DLP

8. Ageing Comparison The following slides are from a test conducted by Munsel Colour Science Laboratory at Rochester Institute of Technology for Texas Instruments showing the image quality of 5 LCD and 2 DLP projectors after over 3000 hours of use.

9. LCD 1LCD 2 LCD 3LCD 4LCD 5 3312 Hours LCD Experiment Results Photo at 24 hours

10. DLP 2DLP 1 3312 Hours Photo at 24 hours DLP Experiment Results

11. LCD 5 Progressive Degradation

12. Projection Resolution 2K 1920x1080 pixels HDTV 1.3K 1280x720 pixels HDTV DVD 720x576 PAL

13. Electronic Cinema Standards The following standards were set by Digital Cinema Initiatives, USA in July 2005 Pixel Count “2K” 2048 x 1080 OR “4K” 4096 x 2160 Calibrated white luminance, centre screen14ftL (Dolby spec for film is 16ftL) Colour uniformity of white field +-.010 x, y relative to centre Sequential contrast ratio1200:1 Intra frame contrast ratio100:1 Greyscale trackingNo visible colour shading

14. History of Digital Projection International 1987-1988 A division of the Rank Organisation, Rank Brimar, sets up an R&D team of engineers to work with Texas Instruments to develop DLP projection using Digital Micro-mirror Device. The relationship with TI predates any other projector manufacturer by many years. 1992 Rank Brimar engineers demonstrate the first DLP displayed image using the revolutionary “bit splitting” technology developed and patented by the Brimar lead engineer Brian Critchley who remains DPI’s Managing Director today. 1996 Engineering team buys out Rank Brimar and launches Digital Projection International. DPI ships first 3-chip DLP projector. 1998 DPI wins 2 Emmy Awards for outstanding engineering development. DPI remains the first and only projector manufacturer to win the award. 2000-2004 Digital Projection joins TI for an in depth study of Digital Cinema. During the process, some of the key parameters for the future of Digital Cinema are defined. Today Digital Projection remains TI’s only partner with a range of solutions that are 100% dedicated to the DLP platform.

15. Digital Projection 3 chip DLP Products Morpheus Specifically developed for E-Cinema applications Currently 1.3k 6,000 ANSI Lumens Titan 1.3k & 2k resolution 2,000-6,000 ANSI Lumens Lightning 2k resolution 18,000-22,000 ANSI Lumens

16. Future of Electronic Cinema The Cinema Industry has to remain well ahead of what the public are able to have in their homes. Many projectors are currently being sold as “State of The Art”. The reality is that many of these projectors use inferior technology and give mediocre image quality. “State of The Art” means the best that is currently available. LCD, LCOS or single chip DLP are generally not “State of The Art”. 3 Chip DLP is currently “State of The Art”. DLP is the only truly digital projection technology. If mediocre projection systems are used, cinema attendance is likely to drop as people become disillusioned with the experience they are getting using DVD sources and inferior projection systems. The only way forward for cinema’s using Electronic Projection is to invest in quality equipment capable of giving audiences a memorable experience. Otherwise the viewing public will vote with their feet.

17. The following clip is a standard PAL DVD film clip up-scaled to 1.3k DVD resolution Film Clip

18. The following clip is 1.3k resolution 720p Windows Media Encoded HD file 1.3k 720p is being used in the Asian Cinema market with over 1,250 Digital Projection Morpheus projectors installed. High Definition Clips

19. Questions Andy Milne, Technical Director, Technical Audio Group NZ Ltd 09 416 0190 www.tagnz.co.nz www.digitalprojection.com