National CineMedia Invests in Health Club Digital Media Network Operator IdeaCast

June 26, 2007

CENTENNIAL, Colo. & CHICAGO--(BUSINESS WIRE)--National CineMedia, Inc.s (NASDAQ: NCMI) operating subsidiary, National CineMedia LLC (NCM) has invested in IdeaCast Inc., a leading provider of advertising to fitness centers and health clubs throughout the United States. Under the terms of the new agreement, NCM is investing up to $7.0 million in 6% preferred stock convertible into a minority interest in IdeaCast common stock and will have an option at a specified valuation to acquire additional common stock such that NCMs overall investment (including the convertible preferred stock) represents 50.1% of IdeaCasts fully diluted common stock. The announcement was made today by Kurt Hall, NCMIs chairman and chief executive officer and Fred Smith, IdeaCasts chief executive officer and chairman.

Through a series of multi-year agreements with CNN, CNBC and MSNBC, IdeaCast exclusively re-distributes network programming to and manages program advertising sales for select health club locations nationwide. IdeaCasts network currently includes nearly 600 club locations and has secured agreements with an additional 500 clubs to join its network over the next several months. At that time, the IdeaCast health club network will cover 116 markets including all top 25 markets and 45 of the top 50 markets, representing over 200 million club visits per year.

IdeaCasts network currently includes a growing base of premier fitness locations including Lifestyle Family Fitness, Club One, Fitness Formula, Spectrum and Town Sports International, a leading owner of health clubs operating under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs. National advertisers currently sponsoring programming on the IdeaCast network include American Airlines, AT&T, Dunkin Donuts and Quaker.

As part of our previously communicated long-term strategy, we have investigated several new, emerging digital media networks for an opportunity to extend NCMs advertising reach and accelerate future revenue and EBITDA growth, while at the same time leveraging our existing sales, marketing and technology infrastructure, said Mr. Hall. IdeaCast is uniquely positioned in the new digital media marketplace with an existing national platform, a high quality management and sales team, proven technology and a favorable financial model that provides benefits to both cable programmers and club owners.

Mr. Hall concluded by saying, IdeaCast is intended to be a business incubator, allowing NCM to participate in the fast-growing out-of-home digital media category, while NCMs management team continues to focus on expanding its cinema advertising business.

Mr. Smith added, I am very excited about our new agreement with NCM and the opportunity to create a long-term strategic relationship with a leading digital media company. NCMs investment is in many ways a confirmation of IdeaCasts business strategy and the value of our health club network as a new type of high-growth advertising medium. I look forward to exploring sales and operating synergies between our two companies as we expand our network.

About National CineMedia, Inc.

NCM LLC operates the largest digital in-theatre network in North America through long-term agreements with its founding members, AMC Entertainment Inc., Cinemark USA Inc. (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC), the three largest movie theatre operators in the U.S., and through multi-year agreements with several other theatre operators. NCM LLC produces and distributes its FirstLook pre feature program; cinema and lobby advertising products; comprehensive meeting and event services and other entertainment programming content. NCM LLCs national network includes approximately 14,000 screens of which approximately 12,200 are part of the companys Digital Content Network (DCN). NCM LLCs DCN covers 154 Designated Market Areas® (49 of the top 50). During 2006, approximately 550 million patrons attended movies shown in theatres owned by the NCM LLC founding members (excluding Loews). National CineMedia, Inc. (NASDAQ: NCMI) owns a 44.8% interest in and is the managing member of NCM LLC. For additional information, visit

About IdeaCast, Inc.

IdeaCast Inc. is the largest private satellite/cable provider in the world exclusively distributing custom content and advertising to health clubs. Through multi-year agreements with content partners CNN, CNBC and MSNBC, IdeaCast inserts custom advertising into the live program feed, delivering a uniquely targeted experience of sight, sound and motion to health club members.

IdeaCast has agreements with approximately 1000 health club locations, and engages 200 million club attendees per year. IdeaCast covers 103 Designated Market Areas®, all of the top 25, and 45 of the top 50. For additional information, visit

Forward Looking Statements

This press release contains various forward-looking statements that reflect managements current expectations or beliefs regarding future events, including statements regarding guidance and the dividend policy. Investors are cautioned that reliance on these forward-looking statements involves risks and uncertainties. Although the Company believes that the assumptions used in the forward looking statements are reasonable, any of these assumptions could prove to be inaccurate and, as a result, actual results could differ materially from those expressed or implied in the forward looking statements. The factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are, among others, 1) the level of expenditures on cinema advertising; 2) increased competition for advertising expenditures; 3) technological changes and innovations; 4) popularity of major motion picture releases and level of theatre attendance; 5) shifts in population and other demographics that affect theatre attendance; 6) our ability to renew or replace expiring advertising and content contracts; 7) our need for additional funding, risks and uncertainties relating to our significant indebtedness; 8) fluctuations in operating costs; and 9) changes in interest rates, and 10) changes in accounting principles. Please refer to the Company's Securities and Exchange Commission filings for further information about these and other risks.


National CineMedia, Inc.
Integrated Corporate Relations
Nikki Sacks, 800-844-0935
National CineMedia
Lauren Leff, 212-931-8107
The Lippin Group
Don Ciaramella, 212-986-7080