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Cinram Acquires 1K Studios

Canadian disc manufacturing giant buys digital-media production shop

Trying to evolve its business from the fast-shrinking DVD and CD replication industry, Toronto-based Cinram has announced the purhase of L.A.-based digital-media production shop 1K Studios.

Here's the full announcement:

CINRAM INTERNATIONAL ACQUIRES 1K STUDIOS
 
Move Positions Hollywood’s Leading Media Manufacturer and Logistics
Provider for Growth in Emerging Technology and Digital Content 
Delivery
 
TORONTO – (January 31, 2011) - Cinram International Income Fund
(“Cinram” or the “Fund”) (TSX: CRW.UN), today announced the 
acquisition of Los Angeles-based digital media company 1K Studios.

The move is part of a broad initiative to advance Cinram, a provider
of media delivery services around the
world, further into digital platforms.
 
1K specializes in building enhanced consumer experiences for movies,
TV shows, music, books and games. The company has been a key service 
provider to many of the world’s top media & technology companies 
including Paramount Home Entertainment, Apple, HBO, and Warner Bros 
Home Entertainment. 

1K provides creative and technical services to these companies to help
them release their content in different venues including digital 
downloads, mobile and tablet apps, advanced Blu-ray discs,
stereoscopic 3D and social media.
 
These services will be integrated with Cinram’s existing media
production and logistics business, creating an end-to-end supply 
chain with significant competitive advantages for
its customers. The new expertise will play an important role in 
Cinram’s effort to identify and evaluate additional opportunities 
to add to the company’s client offering.
 
“In the ever-evolving digital landscape, we must adapt our business
model to meet our partners’ needs,” said Steve Brown, Chief Executive 
Officer for Cinram International,
Inc. “No matter how the delivery methods change, consumers continue to demand exciting experiences. 1K
Studios is proven in delivering innovative, creative and valuable 
digital content. I’mconvinced that with our combined resources and 
know-how we’ll offer clients a superior service.”
 
“Cinram has a long history of re-inventing itself as media has
advanced over the decades. We’re excited by the challenge of helping 
to bring about another transformation” said Matt Kennedy, co-founder 
of 1K Studios. “We’re very enthusiastic about the prospects of our 
ideas and emerging businesses being fostered inside Cinram’s global 
business infrastructure.”
 
The deal will consolidate a network of client relationships that
includes all of the major U.S. and European
movie and TV studios, record companies, and game distributors, as well
as numerous publishers and
technology companies.
 
1K Studios management and team of specialized designers, programmers,
information architects, animators and content producers will continue to operate from their
existing Los Angeles studio.
 
Cinram International Inc., an indirect, wholly-owned subsidiary of the
Fund, is one of the world’s largest providers of pre-recorded 
multimedia products and related logistics services. With facilities 
in North America and Europe, Cinram International Inc. manufactures 
and distributes pre-recorded DVDs, audio CDs, and CD-ROMs for motion 
picture studios, music labels, publishers and computer software 
companies around the world. 

Cinram now also provides distribution and
logistics services to the telecommunications industry in North 
America through its wireless subsidiaries. The Fund’s units are 
listed on the Toronto Stock Exchange under the symbol CRW.UN. For 
more information, visit our website
at www.cinram.com.
 
1K|Studios is a digital media firm based in Los Angeles and founded in
1998. The company specializes in building enhanced consumer experiences for movies, TV shows, music,
books and games. 1K was recently involved in the launch of Apple’s iTunes Extras and LP
enhanced digital download format, helping several studios and record companies design, program and
deliver movies and music using the new formats. 

Their work is featured in various forms on hundreds of
top-selling Blu-ray releases, including three top honor award winners at Variety Magazine’s Home
Media Awards this fall: Paramount’s Star Trek, HBO’s True Blood series and Warner Brothers’ Wizard of Oz
Collector’s Edition. The company is also currently developing several iPad applications to be announced
in the coming months.