Cinedigm Announces Closing of Underwritten Public Offering

July 1, 2013

Cinedigm Announces Closing of Underwritten Public Offering CENTURY CITY, Calif. & NEW YORK--(BUSINESS WIRE)-- Cinedigm Digital Cinema Corp. (NASDAQ:CIDM),a global leader in digital cinema, announced today it closed an underwritten public offering of 3,780,718 shares of common stock, at a price to the public of $1.38 per share. The Company plans to use the approximately $4.8 million in net proceeds for the acquisition of library and film content, marketing and distribution expenses related to its growing slate of films, the launching of over-the-top entertainment channels, and for general corporate purposes.

In connection with the offering, Merriman Capital, Inc. and National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (OTCBB: NHLD), acted as joint book runners.

While we continue to rapidly grow our content distribution business, we have targeted a number of new high potential content acquisition opportunities that can be tapped at an attractive rate of return to investors, said Chris McGurk, Chairman and CEO. As we head toward the busy fall film acquisition season and pursue a number of library acquisitions in front of us, we believe this equity raise will continue our positive momentum in Fiscal 2014. Additionally, if the early reviews, accolades and awards are any indication, our August release of SHORT TERM 12 has the potential to be a significant event for us and we must be poised to support the films success. Finally, on the OTT channel front, its important that we move quickly to establish ourselves as a key player in this high potential and rapidly evolving business.

In the last 12 months we have released 10 films, 5 in the last quarter alone, and the upfront acquisition and marketing costs associated with those releases have yet to be recouped as it takes roughly 6-12 months to recycle our initial content investments, said Adam Mizel, Chief Operating Officer and CFO. Based on our slate of profitable acquisitions to date, we have concluded that the accretive opportunities in front of us currently merit this raise as we expect to grow our content revenues over 200%+ this year and that takes capital plain and simple. As we recycle our content investments and continue to develop our track record in the coming months, our goal for the future is to utilize other non-equity sources to fund our working capital.

A registration statement relating to the shares of common stocks to be issued in this offering has been filed with the Securities and Exchange Commission (SEC) and is effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT CINEDIGM:

Over the past decade, Cinedigm has led the digital distribution revolution that continues to transform the media landscape. In addition to its pioneering role in transitioning movie theatres from traditional film prints to digital distribution, Cinedigm continues to advance worldwide cinema modernization with its suite of software products allowing exhibitors and distributors to manage their newly digital businesses with efficiency, insight and certainty. And, as the leading distributor of independent content in the world, Cinedigm collaborates with producers and the exhibition community with unequalled transparency to market, source, curate and distribute quality content across all digital platforms to targeted and profitable audiences. The companys library of over 5,000 titles includes award-winning documentaries from Docurama Films , next-gen indies from Flatiron Film Company and acclaimed independent films and festival picks through partnerships with the Sundance Institute and Tribeca Film. Cinedigm is proud to distribute many Oscar -nominated films including THE INVISIBLE WAR, HELL AND BACK AGAIN, GASLAND, WASTE LAND and PARADISE LOST 3: PURGATORY.

Current and upcoming CEG releases include Destin Daniel Crettons SHORT TERM 12, Penny Lanes OUR NIXON, Shaul Schwarzs NARCO CULTURA, Jared Moshes DEAD MANS BURDEN, Geoffrey Fletchers VIOLET & DAISY, Malika Zouhali-Worrall and Katherine Fairfax Wrights CALL ME KUCHU and Jimmy Lowerees ABSENCE.

Cinedigm and Cinedigm Digital Cinema Corp are trademarks of Cinedigm Digital Cinema Corp www.cinedigm.com. [CIDM-G]

Safe Harbor Statement

Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cinedigm officials during presentations about Cinedigm, along with Cinedigms filings with the Securities and Exchange Commission, including Cinedigms registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the Act). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as expects, anticipates, intends, plans, could, might, believes, seeks, estimates or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cinedigms management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its technology, economic and market factors and the industries in

LINK:	http://investor.cinedigm.com/releasedetail.cfm?ReleaseID=774759...
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