Regal Entertainment and Convex Announce Content and Marketing Alliance

Posted on February 28, 2003

The Convex Group, a newly-formed media and entertainment holding company, and Regal CineMedia Corporation ("RCM"), the media subsidiary of Regal Entertainment Group ("REG"), a theatre operator, have entered into a multi-year programming and marketing alliance across REG's theatres, which includes a development agreement based on the HowStuffWorks franchise for RCM's in-theatre digital network. The announcement was made by Dawn Whaley, Convex Executive Vice President of Corporate Development, and Cliff Marks, RCM P resident, Marketing and Sales.

RCM is currently deploying a Digital Content Network ("DCN") for the delivery of digital video content. The DCN is being installed in approximately 375 theatres. The new DCN will feature original programming content from The Convex Group., along with programming from NBC, Turner Broadcasting Systems, Inc. and Vivendi Universal Entertainment.

The Convex Group will utilize their consumer content and distribution properties to create entertainment programming for presentation within REG's theatres that are part of the Regal CineMedia DCN. Convex will use their entertainment properties, such as HowStuffWorks, as well as other original content, to create short-form segments for theatre attendees. Currently distributed in books, magazines, via radio and the web destination howstuffworks.com, HowStuffWorks has a library of articles that explain the world from the inside out.

Theatre attendees will also be able to "take home" their in-theatre experience through Convex's distribution of an enhanced CD-ROM to be packaged with fountain drinks sold at theatre concession areas. Convex's in-lid CD-ROM is a new product distribution and consumer acquisition tool that has been utilized to promote offerings such as hit music in quick service restaurants and interactive coloring books distributed at theme parks.

"Our new partnership with Regal CineMedia allows us to bring Convex's award-winning content to life on the big screen for movie-goers throughout the U.S. and our exclusive CD-ROM let's movie-goers take this experience home with them," said Whaley. "We believe that Regal is leading the industry to improve the theatre entertainment experience for patrons, while creating innovative solutions for marketers."