1. Strategy and Current Status: Europa Distribution Conference Estoril November 2009

2.  Major circuits in UK currently involved in own discussions with distribution to help fund digital changeover  Approx 1000 independent screens unsure of appropriate strategy for themselves  Following a ‘digital cinema roadshow’ held by CEA and UKFC, expressions of interest in forming a joint funding group from approx 600 independent screens of all types  Group CEO appointed in October 2009

3.  Commence negotiations with studios and other possible funders and providers e.g. Third party Integrators  Commence discussions with equipment manufacturers and service providers  Decide upon appropriate legal structure and constitution of the group  Investigate sources of capital finance and financial guarantees

4.  All US studios visited. Overall response is very positive and all are willing to discuss funding agreements directly with the Group  Currently meeting with THI’s to assess level of interest in working with the Group and providing either ‘turnkey’ services or a hybrid solution  Also investigating sources of capital and guarantees with both public and commercial bodies

5.  Feasibility study period ends early 2010  Legal structure formed early 2010  Negotiations with possible funding entities continue through 2010  Finance and guarantees in place late 2010  Contracts agreed with funding entities third/fourth quarter  Roll-out commences late 2010 through 2011