CinemaNow Launches Worldwide Network to Establish Localized Video-On-Demand Services Around the Globe

MARINA DEL REY, Calif. - CinemaNow, Inc., the global leader inIP-based video-on-demand distribution and technology, announced thecreation of the CinemaNow Worldwide Network, a global consortium of Websites set up in conjunction with telecommunication companies, Internetservice providers and media companies, in an effort to providelocalized video-on-demand (VOD) and subscription video-on-demand (SVOD)services in specified territories throughout the world. CinemaNow'sPatchBay technology serves as a centralized distribution, managementand security system for the network's content.

Agreements being announced today include content syndication,technology licensing and marketing deals with leading broadbanddelivery partners including British Telecom in the United Kingdom,Freeserve, the Wanadoo Group's ISP-Portal in the UK, GOL Philippines inthe Philippines, NextGentTel in Norway, Purocine in Latin America andTV2 Interaktiv in Norway. Previously announced international licensors(Chunghwa Telecom in Taiwan and Walker Asia in Singapore) are alsoincluded as part of the network.

CinemaNow provides its partners with content that is available for aparticular territory (or territories), as well as customized technicaldistribution and content management via the company's proprietaryvideo-on-demand technology solution, PatchBay. Among the services beingprovided by PatchBay are digital and territorial rights protection,user profiling, comprehensive pay-per-view services and detailed reportgeneration. CinemaNow's broadband partners in turn provide customizedlocalization and marketing for the individual services.

"With broadband adoption rates continuing to show tremendous growththroughout Asia and Europe, CinemaNow's Worldwide Network helpstelecommunications and media companies to quickly build video-on-demandand subscription video-on-demand businesses by leveraging ourtime-tested PatchBay technology," said Bruce Eisen, executive vicepresident of CinemaNow. "We see international expansion as a realgrowth area and expect to add several more partners to our network inthe coming months."

"Freeserve recognizes that Internet video-on-demand is an essentialpart in the growth of broadband," said Jon Gisby, Freeserve's ManagingDirector of Portals. "Working with CinemaNow allows us to quicklyestablish a valuable service that we can offer to our growing number ofbroadband users throughout Freeserve, while increasing ourper-subscriber revenues."

"Broadband's growth in Norway has continued to take off at astaggering pace," said Gunnar Stavrum, CEO of TV 2 Interaktiv ASNorway. "Video-on-demand is a distribution platform that we believe hastremendous revenue potential and we are thrilled to be part ofCinemaNow's Worldwide Network.

About CinemaNow

CinemaNow, Inc. (www.cinemanow.com) is the world leader inInternet-based video-on-demand (VOD) and subscription video-on-demand(SVOD) distribution and technology. CinemaNow has also developedPatchBay, a proprietary video-on-demand content distribution andmanagement system which runs the CinemaNow Web site, and is availableas a licensable technology solution. Current PatchBay licensors includesuch diverse partners as Walker Asia and Chunghwa Telecom (filmdistribution), NHL.com (sports programming), CenterSpan (peer-to-peernetwork) and Arescom (hotel broadband provider). CinemaNow is majorityowned by Lions Gate Entertainment (AMEX: LGF).

About Freeserve (www.freeserve.com)

Freeserve is the leading ISP-portal with an integrated offering ofUK-focused content, e-commerce and services and Internet access.Freeserve has 2.553 million active registered accounts and 4.59million* unique users. In February 2002, Freeserve was named BestNational Consumer ISP by the UK's Internet Service Provider Associationand in September 2002, Freeserve was named Best Unmetered ISP for itsAnyTime product by Practical Internet magazine. In October 2002,Freeserve was named Best Internet Service Provider and Best Web HostingProvider by readers of Computeractive magazine.

Freeserve is part of Wanadoo SA, a leading European online media andservices company which has as its major shareholder France Telecom, oneof the world's leading telecommunications companies. Wanadoo SA is aleading Internet media services provider in France, the UK and aco-leader in Spain and is also present in the Netherlands and Belgium.Including Freeserve, Wanadoo S.A has 8 million active registered usersand 20 million unique visitors per month to its portals. Freeserve waslaunched in September 1998 as part of Dixons, Europe's leading consumerelectronics retailer. Dixons Group remains a minority shareholder inWanadoo S.A and Freeserve distributes its access software in the UKthrough Dixons' network of over 1,100 Dixons, Currys, PC World and TheLink stores, plus Orange and MVC stores nationwide.