Visit Us Online at www.UltraStarMovies.com

The Return of 3D to Cinemas

DAMON RUBIO – Executive Vice President of Operations

San Diego's only locally owned chain of theaters.

•Established 1999. (Last year was our 10 year anniversary).

• One of the first chains to roll out 1.2k Digital Projectors in 2001. •The first chain in the nation to become a 100% digital chain. (May 2005)

•Rolled out to 120 screens using new 2k projectors.

13 Locations - 120 screens

San Diego, Riverside, San Bernardino and Arizona

River Village 6 in Bonsall / Fallbrook Mission Marketplace 13 in Oceanside

La Costa 6 in Carlsbad Del Mar Highland 8 in San Diego

Flower Hill 4 in Del Mar Poway 10 in Poway

Mission Valley 7 @ Hazard Center in San Diego Chula Vista 10 in Chula Vista Apple Valley 14 in Apple Valley

Surprise Pointe 14 in Surprise, Az Lake Havasu 10 in Lake Havasu City, AZ

--- Coming Soon ---Scottsdale Pavilions 11 in AZ October 2010

DEPLOYING STATE OF THE ART TECHNOLOGY

PURE DIGITAL CINEMAPURE DIGITAL CINEMA

Digital 3D Cinema Solutions

Cool Glasses – Real-d

Our First 3-D Film

July 2006

178 Screens in USA

$22 million Open wk end

11% of that was 3D gross.

First Digital 3D Release

November 2005

** VERY POSITIVE CUSTOMER RESPONSE **

3D Slate - Over 25+ 3D Releases since 2006

THE GAME CHANGERTHE GAME CHANGERTotal Lifetime GrossesDomestic: $747,990,164   27.5%Foreign: $1,970,000,000   72.5%Worldwide: $2,717,990,164 

Avatar 3D grosses 80% of overall (domestic)

Domestic: $330,915,607   34.5%  Foreign: $629,500,000   65.5%  Worldwide: $960,415,607 

Disney counts 65% of its open weekend gross on Alice from 3-D screenings.

--- THEN ---

ALTERNITIVE CONTENT

THE DIGITAL LANDSCAPE NOWTHE DIGITAL LANDSCAPE NOW

As of October 2009

37, 092 Screens in USA

5,343 locations

6,992 Digital screens

2,941 3D Screens

3D Slate - STILL TO COME

Issues and Concerns with 3D Issues and Concerns with 3D Bad use of technology by studios and Bad use of technology by studios and

film makers. film makers. Hokey-ness factor for film makers.Hokey-ness factor for film makers.Price sensitivity. Price sensitivity. Bad presentation by exhibitors.Bad presentation by exhibitors.Resurgence of Film 3D.Resurgence of Film 3D.Health concerns.Health concerns.

Content is King Content is King

It has been long understood thatIt has been long understood that

great visual effects & sound can great visual effects & sound can enhance a good movie, but they enhance a good movie, but they can't make a bad movie good. can't make a bad movie good.

The same goes for 3D. If a movie is The same goes for 3D. If a movie is bad, throwing 3D at it won't fix it.bad, throwing 3D at it won't fix it.

Visit Us Online at www.UltraStarMovies.com

SEE YOU (in 3D) at the MOVIES

DAMON RUBIO – Executive Vice President of Operations