PRESS RELEASE

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Ramzi Shakra
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FOR IMMEDIATE RELEASE

Doremi Labs' Digital Cinema Servers
Debut in 8 Movie Theaters Nationwide
for "Star Wars Episode III" and "Madagascar"

Burbank, CA - June 1, 2005 - Doremi Labs is pleased to announce that eight movie theaters nationwide have installed Doremi's DCP-2 digital cinema server. The installations were completed in time for the debut of the new "Star Wars Episode III - Revenge of the Sith" and "Madagascar" movies.

The DCP-2 is a MXF-Interop compatible MPEG-2 digital cinema server. For DreamWorks' Madagascar movie the DCP-2 is playing a movie file produced by Doremi Labs' ORCA-CS HD-MPEG2 mastering station.

The DCP-2 server is capable of playing MXF-Interop MPEG-2 movies at up to 80Mbits/sec. The server can also play pre-show content at a lower resolution and bit rate. The DCP-2 features up to 400GBytes of RAID1 storage in a 3RU chassis.

The ORCA-CS is an HD MPEG2 mastering station. It encodes HD-SDI to HD MPEG2 at up to 160Mbits/sec direct to the system's hard drive. The encoding process can be previewed live or played back at a later time. The ORCA CS is the first product to combine all the tools for real-time HD MPEG2 processing in one package.

The eight permanent installations of the DCP-2 are at movie theaters in New York, Pennsylvania, Texas and Washington.

About Doremi Labs
Doremi Labs Inc. is a leading developer and manufacturer of video disk recorders (VDR) and video servers for the professional video and audio markets. Founded in 1985, Doremi Labs is based in Burbank, California, with sales offices in France and Tokyo. The Doremi Labs V1 family of VDRs is a market leader with thousands of installations worldwide. Doremi Labs' product line has expanded beyond the video server market and now includes DVI converters, test generators and HD MPEG2 encoders, decoders and video players.

Visit Doremi Labs' at InfoComm 2005 at Booth# 2367