August 10, 2011

Cinedigm Digital Cinema Corp., Societe Generale and Natixis Complete Syndication of up to $130 Million Phase 2 Financing Facility

New Facility Available to Exhibitors to Support Digital Cinema System Conversions

WOODLAND HILLS, CA and MORRISTOWN, NJ -- (MARKET WIRE) -- 08/10/11 -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today announced that its Phase 2 subsidiary has successfully completed syndication of a non-recourse lease financing facility with bookrunners Société Générale Securities America, LLC. and Natixis Corporate and Investment Bank Americas, together with junior lease capital provided by CHG-MERIDIAN US Finance Ltd. The total facility size is a minimum of $100 million, with additional flexibility to expand to $130 million based on exhibitor demand. Closing is currently expected within 30 days.

This funding provides for a non-recourse borrowing facility that Cinedigm can offer to exhibitors to provide a complete financing solution for the conversion to digital systems. Under the terms of the facility, Cinedigm will be the servicer for the digital systems and will work closely with exhibitors, equipment vendors and the lenders to oversee the smooth deployment and the ongoing management of these digital systems.

Several exhibitors are in final discussions with Cinedigm to execute license agreements to participate in this financing facility.

"The continued support of Société Générale and Natixis for digital cinema and Cinedigm, as evidenced by their significant commitment to our non-recourse Phase 2 facility and their ongoing commitments to our Phase 1 facility, is a strong vote of confidence in the digital cinema industry," said Adam M. Mizel, Chief Financial Officer and Chief Strategy Officer of Cinedigm. "By adding partners at CHG and ING, this new facility will provide a simple, turnkey solution for the many interested exhibitors seeking the significant advantages of digital cinema, including 3D movie releases and exciting alternative content offerings."

Richard Knowlton, Managing Director, Leveraged Finance and Media of SG Americas Securities, commented, "Société Générale, together with joint lead arranger and syndication agent, Natixis and documentation agent, ING Capital, are very pleased to continue our support for Cinedigm's digital rollout. Given market conditions, we are also very pleased with market support for this non-recourse credit facility."

Commitments by Société Générale Corporate & Investment Banking, Natixis, CHG and all other participating lenders are subject to certain closing conditions, including the execution of loan documentation satisfactory to the lenders and Cinedigm's Phase 2 subsidiary.

Cinedigm's Digital Cinema division is the industry-leading deployment program for Digital Cinema. It facilitates the funding, installation, operations support and ongoing Virtual Print Fee ("VPF") administration for the company's Digital Cinema rollout plans throughout the United States and Canada. Cinedigm, which has signed long-term VPF agreements with all the major studios and interim agreements with dozens of independent distributors, is also the digital cinema integrator partner for the Cinema Buying Group ("CBG"), a buying program of the National Association of Theatre Owners (NATO) for independent theatre operators in the United States and Canada.

In the combined Phase One and Phase Two digital cinema deployment program, Cinedigm has:

  • Signed 9,000+ screens overall
  • Installed over to 6,700 digital screens
  • Signed 81 CBG exhibitors, representing more than 1,600 screens
  • Signed exhibitor buyer deals representing more than 3,600 screens
  • Signed Phase Two Cinedigm financed deals representing close to 1,700 screens

About Cinedigm
Cinedigm is a leader in providing the services, experience, technology and content critical to transforming movie theatres into digital and networked entertainment centers. The Company partners with Hollywood movie studios, independent movie distributors, and exhibitors to bring movies in digital cinema format to audiences across the country. Cinedigm's digital cinema deployment organization, software, satellite and hard drive digital movie delivery network; pre-show in-theatre advertising services; and marketing and distribution platform for alternative content such as CineLive® 3D and 2D sports and concerts, thematic programming and independent movies is a cornerstone of the digital cinema transformation. Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of Cinedigm Digital Cinema Corp www.cinedigm.com [CIDM-G]

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Contact

Maggie Begley

Maggie@mbcprinc.com

310-301-1785



Source: Cinedigm Digital Cinema

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