Microspace Achieves Significant Digital Cinema Milestones in 007 and Expects Continued Grow in 008

Digital Cinema Company Turns 1 Raleigh, NC, Jan. 14, 2007 Microspace Communications Corporation (Microspace), the leading distributor of digital cinema via satellite, saw an exciting year of firsts and milestones in 2007. The company successfully delivered 11 feature films from five studios and grew its network to 1,000 screens with over a dozen participating theater circuits within the United States, Canada, and Mexico.

The company's success was in large part due to the industry's move to digital movie distribution via satellite as an effective way to deliver films to theaters securely and reliably with the enhanced picture and sound that only digital can provide.

Microspace is the clear choice for studios and exhibitors thanks in part to their platform. Microspace's digital cinema system is the only true open platform in the industry, allowing delivery and playback for any industry-compliant digital cinema system.

In 2007, the industry also began to embrace satellite delivered alternative content to exhibitors. Microspace delivered live sports to theatres. Microspace is convinced the delivery of sports, concerts, and other live events is becoming a more viable and attractive way for studios and theaters to generate additional revenue and reach new and different audiences.

During 2007, Microspace delivered some of the largest grossing, blockbuster films to theaters, including:

Transformers

The Heartbreak Kid

Disturbia

Beowulf (both 2D and 3D)

The Bee Movie

The Game Plan

3:10 to Yuma

Lions for Lambs

National Treasure: Book of Secrets

Sweeney Todd: The Demon Barber of Fleet Street

Halloween

The Microspace network is currently installed at 1,000 screens in 38 states with exhibitor commitments in place to expand the network to over 220 theatre locations connecting more than 2,200 screens by the middle of 2008.

2007 has been an extremely exciting year for Microspace, said Curt Tilly, manager of digital cinema distribution at Microspace. Our expansion into new markets in Mexico and Canada, the constant addition of theaters and screens to our network, and our impressive list of delivered movies is evidence that digital distribution of movies via satellite is the future of Hollywood.

In 2007, Microspace also accomplished the following impressive list of firsts and milestones:

Delivered first 3D movie via satellite to multiple circuits in multiple states (Beowulf)

Delivered first movie via satellite to Showest (Disturbia)

Delivered first movie via satellite to the LA Film Festival (Transformers)

Delivered the first 4K movie via satellite (the Da Vinci Code)

Delivered the first super-HD college football game to multiple theatre locations (West Virginia vs. Louisville)

Expanded their executive team with the addition of industry veteran Michael Murphy

With digital cinema on the rise, the industry expects there to be an additional 20,000 digital-cinema screen installations in the U.S. and Canada by the end of 2010. Digital screens will soon outnumber traditional screens. Microspace expects continued growth as the steady migration towards digital distribution becomes fundamentally important for both the studios and exhibitors in 2008, and beyond.

About Microspace Microspace Communications Corporation (Microspace), a subsidiary of Capitol Broadcasting Company, is the leader in satellite services for digital cinema, business communications and digital signage. The company operates the largest global business satellite broadcasting network with nearly 340,000 remote links worldwide. With a 20-year heritage, Microspaces VELOCITY satellite services power networks for Morgan Stanley, Abercrombie and Fitch, John Deere and many, many more. Microspace uses the Intelsat network for delivering services to the digital cinema industry.

The VELOCITY service is available as either a dedicated solution or as an on-demand service, enabling customers to easily and affordably expand bandwidth as their needs change. Microspace is headquartered in the U.S. and has a presence in Europe and Latin America. For more information, visit www.microspace.com.

About Capitol Broadcasting Capitol Broadcasting Company, Inc. is a diversified communications company which owns and/or operates WRAL-TV, WRAL Digital, WRAL-FM, WRAL-HD2, 99.9 The Fan, Microspace, the North Carolina News Network, CBC New Media Group and Wolfpack Sports Marketing in Raleigh, NC, WJZY-TV and WMYT-TV in Charlotte, NC; WILM-TV in Wilmington, NC; WRAZ-TV and The Durham Bulls in Durham, NC; and real estate interests including the American Tobacco Project and Diamond View office building in Durham, NC.

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