June 2012 Update

June 2012 UpdateAs the first to market with 4K projection, only Sony has delivered a proven solution to over 13,000 screens worldwide. The choice of leading exhibitors, Sony 4K projection is widely hailed for smooth, lifelike images and vivid 3D. And we’re deter-mined to keep our customers in the forefront. As the digital cinema conversion increases pace, Sony continues to provide innovation with no end in sight.

This update covers Sony’s activities in three broad areas: . What’s new: Sony’s expanding portfolio. . Proven 4K: Sony benefits for exhibitors . Image excellence: Sony is synonymous with picture quality.

What’s new

Sony Digital Cinema launches next generation 4K digital projectorSony will unveil its new SRX-R515 high quality 4K digital cinema projection system, designed for use in small or mediumsized screen auditoria, at CineEurope 2012. The projector represents the next stage in the evolution of digital cinema andmakes sense on every screen. The projector demonstrates the next stage in the evolution of digital cinema, enablingsmaller exhibitors to experience the tangible benefits of digitisation and project movies with a resolution that ensures asuperior viewing experience for their customers.

Smaller exhibitors will now be empowered to expand their current role to become entertainment venues, offering new ser-vices beyond traditional content, such as sports, music, theatre, opera, multi-user big screen gaming and cultural events.Sony has refined and optimised 4K for every area of picture performance. The projector boasts a contrast ratio of 5000:1,high frame rate (HFR) and multiple light source technology that is new to cinema projection and introduces a new level ofoperational reliability and ensures there is more than Xenon and Laser illumination.

More than 13,000 Sony 4K projection systems shipped worldwide As the industry’s appreciation of 4K increases, so does the demand for Sony 4K projection systems. In January 2009 we reached approximately 1,000 screens. As of April 2012, we have over 10,500 projectors shipped in the United States, and over 2,500 throughout the rest of the world, with thousands of additional deployments scheduled globally. And we con-tinue to ship hundreds of units per month.

Nearly 50% of all 3D screens in the US are Sony 4KWe have almost as many 3D installations as all of our competitors combined.

High frame rate software upgradeWhile motion pictures are conventionally shot and projected at 24 frames per second (fps), technologists have long understood the advantages of higher frame rates. Reduced motion “judder,” reduced motion blur and a heighted sense of realism can help creators tell their stories. High-profile directors are producing movies at high frame rates. And Sony exhibitors can take advantage. Every existing Sony DCI-compliant Digital Cinema 4K projector will be capable of High Frame Rate projection with no additional hardware required. Available in late Summer 2012, a simple software upgrade will enable 24, 48 and even 60 fps, all at high bitrates, up to 500 megabits per second.

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Laser engine technologyLaser illumination holds vast promise, especially for 3D and high frame rate projection. Sony is committed to providing exhibitors with the full advantages of this tech-nology. On April 14, 2012, Sony and Laser Light Engines demonstrated laser technology at the NAB Technology Symposium on Cinema. This technology preview was the world’s first public demonstration of fully-despeckled, high brightness 3D, high frame rate (HFR), wide color gamut (WCG) laser projection on a silver 3D screen.

Entertainment Access Glasses with Audio for thehearing and visually impairedConventional captioning solutions for the hearing impaired require patrons to constantly shift their focus from the screen to a separate display, making it diffi-cult to follow along. Conventional content description solutions for the visually impaired can require separate screening times or special seating. Sony’s new Entertain-ment Access Glasses with Audio overcome these limita-tions, greatly enhancing the experience for patrons. Beginning in May, 2012, Regal Cinemas in the US will become the first theatre chain to deploy this technology, which will be installed in all 525 locations.

Content Exchange Platform for alternative program-mingA principal advantage of digital cinema is access to a wide range of alternative content including concerts, plays, ballet, opera, sports, interactive gaming, reper-tory events and classic films. These unique out-of-home experiences can fill seats during off times. Sony is demonstrating the Content Exchange Platform, an online marketplace due in early 2013. The Platform will provide content owners with easier and expanded reach to theaters, and will give exhibitors easier access to a broad range of content with flexible programming and new revenue opportunities.

Virtual Print Fee & flexible financingWorking closely with the six majors and more than seventy independent studios, we’ve put together a VPF program with lower upfront costs and added value be-yond the ordinary. This includes complete projector in-stallation, integrated storage server, monitoring software, networked services, access to our 24/7 NOC, technical training, and various prime support packages. Because of our international presence, Sony can work with exhibi-tors on VPF programs in many different countries.

An increased commitment to 4KSince Sony introduced the world’s first commercial 4K projec-tor in 2005, we have continued to expand our commitment to 4K technology, 4K movie releases and 4K digital restorations of movie classics. Beyond 4K projectors and media blocks, Sony continues rolling out products designed for a complete 4K production workflow including the F65 camera; the SR-R4, SR-R1000, SRPC-5, and SR-PC4 recording, storage and transfer units; the SRM-L560 56-inch TRIMASTER™ LCD video monitor; and even a home theatre projector, the VPL-VW1000ES.

Sony’s end-to-end solutions for exhibitorsExhibitors looking for one-stop technology shopping are increasingly turning to Sony. Sony offers more end-to-end solutions for exhibitors than any other manufacturer, with an extraordinary range of technologies and services.

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Sony Digital Cinema 4K ™

Proven 4K: Sony benefits for exhibi-tors.

World’s first: DCI certification of both projector and media blockOur digital cinema 4K projection systems are the industry’s first to successfully complete the full range of compliance tests for specifications required by Digital Cinema Initiatives, LLC (DCI). Both the SRX-R220/LMT-200 and SRX-R320/LMT-300 integrated systems, including projector and media block, have passed all DCI compli-ance tests.

Third-party interoperabilitySony Digital Cinema systems enjoy the predictability and reliability that comes when a single vendor supplies all the key components, including projector chips, pro-jector, media block, Theater Management System (TMS) and Screen Management System (SMS). In addition, we also work with other server manufacturers including Doremi to develop interoperability.

Sony is the only projector manufacturer with a 4K track recordFor years, other manufacturers said there was simply no need for 4K. Now those same manufacturers are offer-ing 4K projectors of their own. Sony has been producing and delivering 4K projection chips and projectors in quantity since 2005.

SXRD™ technology is field-testedAt the heart of a digital projector are the integrated circuits that make the picture, the micro displays. And almost all digital projector companies buy their micro displays from outside, which can leave the companies at the mercy of their chip suppliers. Sony not only makes projectors, we make a high resolution micro display for digital cinemas known as Silicon Crystal Reflective Display (SXRD™).

The 4K SXRD chips in Sony Digital Cinema projectors represent the most advanced version of our latest line of micro displays. The SXRD chip was designed by Sony and is manufactured by Sony and delivers a different, more film like look to digital images, due to a higher fill rate and smaller gaps between pixels The 4K chip has been well proven in demanding commercial, profession-al and Digital Cinema applications, since 2005.

High optical efficiencyA key parameter of a projector is its optical efficiency, the number of lumens output for every watt of lamp power. In an analysis based on service manual information, Sony projectors perform as well as or better than our chief competitors, depending on the lamp chosen.

Broad 3D applicationsSony 3D systems are suitable for a vast array of today’sauditoriums. They deliver a minimum of 4.5 fL of luminance on screens up to 50 feet (side mask) or 40 feet (top mask).

Efficient changeover between 3D and 2DBy using a single Phillips head screwdriver and following on-screen menus, technicians can switch between optimum 3D and optimum 2D in just a few minutes.

Major Hollywood studios support 4K4K is rapidly gaining momentum in production with the launch of the Sony F65 camera, which is already in use for two major motion pictures. 4K releases have been distrib-uted by Paramount, Universal Pictures, Warner Brothers and 20th Century Fox as well as Sony Pictures.

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Sony Digital Cinema 4K™

Image excellence: Sony is synony-mous with picture quality.

The superior picture quality your audience appreci-atesFocus groups conducted by Parker Marketing Re-search* for Sony confirm that real-world theater-goers can see the 4K difference. We showed movies in 2K and 4K, without identifying which was which—and without saying anything about the technical differences between the pictures. Audience members were not told to expect a resolution difference in these “unaided” tests. Even under these circumstances, respondents consistently gave 4K higher marks for every aspect of picture quality. Respondents also gave 4K higher scores than 2K on expected consumer behavior including, “This is something I would tell my friends about,” “This is worth paying more for,” and “I would go out of my way to go to a theater that offered this type of picture quality.”

* Study conducted by Parker Marketing Research on March 3-4, 2009.

Sony offers 3D without triple-flashInstrumental in Sony’s 4K success is our single-projector 3D solution, offered in conjunction with RealD™ XLS systems. Conventional single-projector 3D systems use “triple flash,” which presents information first to the left eye only and then to the right eye only. Unlike 2D projec-tion, only one eye sees an image at a time. Sony’s 3D solution is dramatically different, presenting to both eyes, full-time, the way vision works naturally.

The superiority of 4K is evident on screens of all sizesTheater owners have a choice of digital projection in 4K (4096 x 2160 pixels) or 2K (2048 x 1080). Just as you’d expect, 4K makes a visible difference with reduced stairstep “jaggies” and “screen door effect.” This has been confirmed by consumer research.* While some have suggested that 4K may only be useful for screens of 70 feet or larger, the consumer research was conduct-ed on a 20-foot screen.

Visit pro.sony.eu/digitalcinema for more information.

Sony Europe LimitedDigital Cinema SolutionsThe Heights, WeybridgeSurrey, KT13 0XWUnited Kingdom

© 2012 Sony Electronics Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Features and specifications are subject to change without notice. Non-metric weights and measures are approximate. Sony, Betacam,Trinitron, SDDS and SXRD are trademarks of Sony. CineWatch is a service mark of Sony. RealD is a trademark of RealD. Doremi is a trademark of Doremi Labs Inc.All other trademarks are property of their respective owners.

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A detailed white paper, available at sony.com/4K dem-onstrates that relative viewing distance is the controlling factor.

* Study conducted by Parker Marketing Research on March 3-4, 2009.

Superior presentation of 2K contentThe DCI specification requires broad interoperability between 2K and 4K. Not only can Sony 4K projectors play conventional 2K content, the projectors actually improve the presentation of 2K material. Sony’s Intelligent Smooth-ing algorithm and smaller pixels make the difference.*

*Sony SXRD Technology White Paper, Second Edition, Version 3.11 January

2, 2008.

Sony 4K is more than resolutionImaging professionals understand that resolution is just one aspect of picture quality. That’s why Sony has refined and optimized 4K for every area of picture performance. For example, dark levels are wonderfully low. Contrast ratio is a minimum of 2000:1. Color uniformity is high, thanks in part to a thermal design that includes Peltier effect thermo-electric cooling for the SXRD projection chips. Color accu-racy also meets the DCI specification’s demanding Review Room requirement. Color uniformity is excellent.

Sony and Digital Cinema

Sony is known the world over for our commitment to quality and innovation. We have products that contribute to every part of the motion picture industry, from acquisition to dis-play. And we’re just getting started.

Sony Digital Cinema 4K™