GreenCine, Inc. Announces Video-on-Demand™ and DivX® Distribution System
San Francisco, CA - September 15, 2003

GreenCine, Inc. (www.greencine.com), the leading online DVD rental company for the alternative scene, today announced the launch of the first on-demand broadband movie service from a rental-by-mail company. GreenCine is currently at the forefront of online DVD rental, presenting the Internet's best selection of mainstream and independent titles. With the introduction of Microsoft Windows Media-based VoD and downloadable movies through the DivX Open Video System, GreenCine makes more quality films accessible than ever in the most popular formats desired by a growing base of broadband users.

With the growth of broadband households in US expected to top 58 million by 2004 (source: Nielsen/Netratings), Internet film distribution is ripe with opportunity. Broadband Internet connections, previously only available through business and college connections, are now common to the consumer households through high-speed DSL and cable modem connections. This market has reached a sufficient size to support the creation of an on-demand digital distribution channel.

GreenCine views VOD and DivX video as an opportunity for filmmakers to reach a large, previously untapped audience. The company is working directly with filmmakers and producers to secure rights to distribute their films via its newly offered broadband formats.

"Finally, we have a reliable method to break the usual festival-to-theatrical-to-video release cycle," said Jonathan Marlow, GreenCine Director of Content Acquisitions. "Filmmakers can release their films in multiple formats simultaneously, enabling audiences to find their films rather than requiring films to wait to find an audience. Our revenue sharing model will ultimately prove more lucrative for independent filmmakers as well."

"We are very pleased to be part of the launch of GreenCine's new VOD service and to make available some of the best Eastern Europe to the American audience. VOD is clearly a critical distribution channel for feature films," said Dave Larson, CEO, MGE, Inc. MGE is providing a number of features for the GreenCine broadband launch, including the acclaimed Andrzej Wajda film Zemsta (The Revenge), starring Roman Polanski.

"Our goal is to provide a balance of offbeat and independent movies, in addition to a wide selection of mainstream movies," said Dennis Woo, GreenCine Managing Partner. "As with our DVD rental service, we'll be in a dialogue with our audience to develop a catalog of broadband movies that best suits their tastes."

The GreenCine Video-on-Demandsm streaming service allows for immediate, copy-protected delivery of movies directly to consumer homes. Movies made available in the revolutionary DivX downloadable format provide high-quality video at sizes 7 to 10 times smaller than DVD and utilize Digital Rights Management (DRM), providing for unparalleled security in delivery. The DivX Open Video System is a secure video-on-demand service that enables consumers with high-speed Internet connections to purchase rentals of selected titles online and begin viewing DVD-quality content almost immediately. Thanks to "progressive download" technology, users can begin viewing the films in full-screen, high-quality format a few minutes after the download has begun. Movies can then be viewed on the renter's computer or on any television connected to their PC. The introduction of additional viewing platforms is expected in the months ahead as the maturity of downloadable formats leads to their inclusion on consumer devices, such as standalone DVD players and handheld devices.

GreenCine VOD and DivX movies will be offered for a fee independent of the GreenCine monthly DVD rental subscription charge. Customers do not need to be GreenCine subscription service members to view VOD or DivX titles.