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SPIRIT Replacement ProjectApril 15th, 2010

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SPIRIT Replacement Overview

SPIRIT, the domestic theatrical sales, distribution and revenue collection system , is an 12 year old PowerBuilder system designed to meet the film based distribution needs for Sony Pictures Releasing, Sony Pictures Classics and Airlines.

Over the past several years we developed SPIRITworld, a modern web-based application, designed and built to meet the needs of worldwide theatrical distribution.

•Provide home office with greater access to territory details•Provide greater integration with SAP•Provide a system that has improved bookings functionality•Provide a system that has improved workflow, approvals and controls•Provide a system that utilizes more automated and electronic exchanges of information with business partners.

SPIRITworld has now been deployed in 21 territories meeting the needs of over 300 users.

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Business Benefits

Business BenefitsRecognizing that there are limited capital resources available for system initiatives such as the SPIRIT replacement project, implementing SPIRITworld for our domestic operations will:

• Save $1.5M over the next three years• Improve operating efficiency by leveraging global resources• Meet the needs of digital cinema distribution• Reduce IT costs • Eliminate future implementation risk by leveraging the experienced and highly trained team currently in place• Allow for better analysis of deals through settlement scenarios and approvals• Improved security in smaller territories through better segregation of duty• Better sales visibility through improved reporting• Allow for the standardization of worldwide businesses processes for distribution and marketing• Facilitate regionalization of cash application and box office processing• Streamline system integration with Deluxe• Improve the likelihood of a sale of SPIRITworld to another studio

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Business Benefits

Business Benefits:

Eileen Lomis and Craig Bartelt:

“The conversion of Spirit to Spiritworld would achieve the long standing distribution goal of a worldwide unified system of reporting.  This would allow strategic planning to be done utilizing the one system instead of transferring data to other applications for analysis.  The use of a web based platform will result in greater efficiencies from our home and satellite offices.  For one, we anticipate better response time based on bandwidth and not Citrix.    We also feel a domestic web based version of Spiritworld will give us a competitive advantage against our competitors as all of our sales people, exhibitor relations and home office personnel can have access 24/7 and not be limited by network access.  We look forward to greater ease of use, ease of enhancements and better adaptability to the ever changing world of motion picture distribution with the implementation of this new system.”

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Information Technology Benefits

IT BenefitsReplacing SPIRIT with SPIRITworld will:

• Reduce our theatrical sales and distribution systems to a single application• Reduce overhead expense by $500k annually through a staff reduction of 7• Reduce overall capital expenditure• Eliminate the need to upgrade PowerBuilder and Oracle• Avoid costly disaster recover investment required for GISP/GISS• Eliminate throwaway investment on SPIRIT enhancements, digital cinema distribution, Deluxe interfaces, integration to Worldwide Print Tracking• Eliminate future implementation risk by leveraging the experienced and highly trained team currently in place

Project Cost Benefit Summary

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