August 6, 2002


SANTA MONICA, CA - China is working to implement a digital cinema network throughout the country. The China Film Group Corporation recently purchased Avica FilmStore digital cinema players and Avica's Digital Cinema Mastering System, which it will use to help deploy digital cinema throughout the People's Republic of China.

The China Film Group's Hua Long Digital Productions Co., Ltd. has taken delivery of the Avica Mastering System, which is being used to produce distribution masters of digital content produced in China. Additionally, 10 theatres have already received FilmStore digital cinema players, including theatres in Beijing, Shanghai, Shenzhen, Guangzhou and Chengdu. The first wave of 100-screen deployment will take place throughout 2002 and 2003. "Avica's ability to assist in integration of our distribution and conditional access system, as well as the overall reliability and ease of use of their products and software, was a key consideration in our selection process," explains Yaozu Huang, board director/chief engineer of China Film Group Corporation and president of Hua Long Digital.

"The conversion of movie screens throughout the world to digital technology has now moved to an entirely new level with the commitment of China Film Group Corporation to upgrade its movie distribution and presentation infrastructure," adds Andrew Maltz, Avica president/CEO. "Exhibitors worldwide are aware of the many benefits and increased revenue potential offered by the digital format and we expect the industry conversion we've seen this year to continue at an increasing rate."