ARESCOM and CinemaNow Partner to Deliver High-Speed Video-on-Demand to Hotel Guests

Hotels Receive High Speed Internet Access & Video-On-Demand Free of Installation or Maintenance Charges While Adding Revenue; Guests Pay a Single Fee for 24-hour Access to Hundreds of DVD-Quality Movies with Pause, Rewind & Fast Forward Capabilities

FREMONT AND MARINA DEL REY, CALIF. — AUG. 28, 2002 — ARESCOM Inc., a global provider of High Speed Internet Access (HSIA) equipment and related services for the hospitality, residential property, telecommunication and ISP markets, has partnered with CinemaNow Inc., the leader in Internet Protocol-based Video-On-Demand (VOD) distribution and technology, to help properties create unique stays for strengthened guest loyalty, while tapping into a significant new risk-free revenue stream.

The first alliance of its kind in the hospitality industry, this partnership allows hotels to receive both HSIA and VOD free of installation or maintenance charges, or common related billing and support headaches. For a single fee each night, guests with laptops now can receive unlimited High Speed Internet Access to hundreds of DVD-quality movies — all with pause, rewind and fast-forward capabilities.

The rapidly growing ARESCOM Hospitality Network (AHN) will couple its popular free-to-property wired and wireless HSIA offerings, backed by Automatic Guest Billing and 24/7/365 professional phone support, with VOD technology and content provided by CinemaNow.

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Guests will be able to access a wide range of content from CinemaNow’s diverse film library through the co-branded ARESCOM Cinemagic Video-On-Demand service, providing users instant access and a larger selection of titles than traditional hotel-based VOD services. All films will be available in either streaming or download formats and will be delivered directly from local hotel servers, thus ensuring an optimal user experience.

CinemaNow’s extensive list of technology and distribution partners includes such giants as Microsoft WindowsMedia.com, Intel, Blockbuster, Lions Gate Entertainment, and Allied Artists to name a few. The company has the rights to more than 2,500 full-length feature films, of which about 500 are currently offered, along with dozens of short films by major studios and independents. The company currently delivers about 2 million video streams via www.cinemanow.com to approximately 1 million unique visitors every month.

The technology behind CinemaNow is just as impressive as its partners. Built on Microsoft’s Windows operating system, CinemaNow’s proprietary PatchBayTM application can be licensed to distributors wishing to manage IP-based Video-On-Demand services — and provides everything from content distribution and digital and territorial rights protection through the latest encryption technology,
to targeted advertising, pay-per-view and subscription services, to detailed report generation.

“The hotel industry has proven itself to be a strong marketplace for Video-On-Demand,” said Bruce Eisen, executive vice president of CinemaNow. “By offering instant on-demand access and more content than traditional hotel services currently provide, along with the added convenience of streaming and downloading, we see a great opportunity to expand CinemaNow’s distribution network. In partnering with ARESCOM, we are provided with immediate access to a large network of respected hotels and have the knowledge that our films will be delivered through a high-quality, broadband connection over a localized network that provides an incredibly reliable user experience.”

Dave Egan, vice president of marketing for Fremont-based ARESCOM, said VOD goes hand in hand with the wired and wireless HSIA offerings of the ARESCOM Hospitality Network.

“Providing a Video-On-Demand service for the hotel traveler is a natural complement to our High Speed Internet Access offerings,” Egan said. “We’re proud to partner with an industry leader such as CinemaNow and forge new ground together by allowing hotels to offer both of these high-demand amenities simultaneously — with zero risks and a piece of the revenue share pie.

“We have maintained all along that AHN aims to put hospitality back in HSIA, and this unique alliance goes a long way toward accomplishing that,” Egan said. “We know of no other HSIA provider that can and will deploy both wired and wireless High Speed Internet Access AND cutting-edge VOD solutions — absolutely free to hotels. Because of the unique value proposition delivered by these complementary offerings, we expect a major ‘two thumbs up’ from hotels and guests alike.”

About ARESCOM
Founded in the Silicon Valley, in 1996, ARESCOM designs, manufactures and markets a comprehensive line of broadband access solutions, ranging from the most sophisticated turnkey wired and wireless High Speed Internet Access solutions for the booming worldwide hospitality market, to state-of-the-art DSL and wireless solutions for homes and small businesses. Currently, ARESCOM’s DSL broadband access equipment is widely deployed by major telecommunication carriers, REITs, Hotels, ISPs and SOHOs throughout the U.S., Asia and Europe.

About CinemaNow
CinemaNow Inc. (www.cinemanow.com), the leader in Internet Video-on-Demand (VOD) distribution and technology, currently delivers nearly 2 million video streams to approximately 1 million users per month. The company makes films available via its Web site in both streaming and download formats and on a pay-per-view, subscription and ad-supported basis. CinemaNow has also developed PatchBay?, a proprietary video-on-demand content distribution and management system that runs the CinemaNow Web site and is available as a licensable technology solution. CinemaNow is majority owned by Lions Gate Entertainment (AMEX and TSE: LGF), a leading creator, producer and distributor of filmed entertainment worldwide.

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