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5,000 Digital 3-D Movie Theatres Expected by 2009

L.A. Times Reporting 5,000 Digital 3-D Theatres Expected to Be Online by Mid ’09 Plays Right into Stereo Vision’s Hand

STEREO VISION ENTERTAINMENT INC. (OTCBB:SVSN) is happy to report that according to the April 20th L.A. Times article by Lorenza Munoz, by the summer of ’09, they expect there to be 5,000 digital 3-D theatres available for the exhibition of polarized 3-D movies. That’s up from the 800 digital 3-D theatres currently available. Dreamworks Animation and Disney are already vying for the same opening day in 2009 for their polarized 3-D premiers. StereoVision’s head of productions Baywatch co-creator Doug Schwartz and his StereoVision team, have dedicated much of the last several years to the development of StereoVision’s slate of low cost, high production value, live action 3-D movies. This report makes it appear that it was time well spent.

StereoVision’s Chief Executive Officer Jack Honour commented: “It’s very gratifying to see companies like Disney (NYSE:DIS) and Dreamworks Animation (NYSE:DWA) so solidly in line with what we’ve been pitching for some time now. With Imax’s (NASDAQ:IMAX) 3-D version of Superman doing twenty million dollars in 75 theatres in thirty days, the earning potential of a 3-D release in 5000 theatres is extraordinary.

One of the most exciting elements of this exponentially growing digital 3-D theatre network is the ability to reach so many theatres, for so little money. In the past the distributors, who have to pay the P&A (prints and advertising) costs, had to pay approximately two thousand dollars per theatre, just for the movie print. So a 5,000 theatre release would cost them ten million dollars just for the prints. Additionally, there was the long term cost of the shipping and storing of the prints. With these 5,000 + digital theatres now coming on line, the content can be transferred electronically. This allows the distributors to risk far less money, and apply a much higher percentage of their per picture expenditures to the movie’s advertising budget. Advertising of course, is what best drives ticket sales.

It looks like there’s going to be a rapidly expanding demand for polarized 3-D content and it’s our aim to be a leading supplier of that content.”

About StereoVision:
Located in Van Nuys, California, StereoVision Entertainment is a publicly traded, vertically integrated media company, with interests in film, television, and music production properties. StereoVision’s business is driven by the production and acquisition of cutting-edge entertainment media assets.

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