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To: candide- who wrote (6407)3/8/2000 11:22:00 AM
From: Dealer  Respond to of 35685
 
QCOM---Use of QUALCOMM encryption, compression and watermarking technologies by Kodak

(QCOM) Kodak and QUALCOMM Launch Digital Cinema Initiative
BUSINESS WIRE - March 08, 2000 11:05
LAS VEGAS, Mar 8, 2000 (BUSINESS WIRE) -- Eastman Kodak Company announced an agreement with QUALCOMM Incorporated here today at the ShoWest conference to collaborate on testing of core technologies for the creation of a high-quality digital cinema system.

QUALCOMM compression, encryption and watermarking techniques will be key technologies incorporated into a prototype digital projection system that Kodak is developing.

"The commercial success of digital cinema will require a fully-integrated system involving a number of partners making contributions in their respective areas of expertise," says Eric Rodli, chief operating officer for Kodak's Entertainment Imaging division. "Kodak intends to play an enabling role as `integrator' in the development of this system. Compression, encryption and other issues need to be resolved. QUALCOMM has developed unique expertise and very promising technology in these areas."

Kodak is leading an industry-wide effort to create a digital cinema system at its Imaging Technology Center in Hollywood. Rodli says Kodak will build, test, demonstrate and continually improve components needed for a high-quality digital cinema projection system, drawing on expertise from various companies--including Kodak--and other organizations in the motion picture industry.

"We believe the QUALCOMM encryption and compression technology that Kodak will be testing will exceed the industry's expectations," says Kim Haile, senior vice president and general manager of QUALCOMM's Digital Media Division. "They are part of a significant, long-term commitment we are making in digital cinema. We are pleased to be working with Kodak on this initiative."

Kodak's Bob Mayson, general manager, Cinema Operations group, says this is part of a broad initiative to help ensure that both film and digital exhibition technologies meet the rising expectations of consumers for a more engaging movie-going experience in the 21st century. He notes that during the 1990s, Kodak technology set the industry standards for converting film to digital format for visual effects applications and then back to film for mastering release prints.

"Film contains much more information than can be automatically handled in a digital transmission system," Mayson explains. "The best alternative is to use the right technology to compress the image data files without compromising the artistic integrity of the original film. You also need a foolproof encryption system to ensure that the digital files aren't pirated. We believe QUALCOMM will play an important role in these areas."

Mayson predicts that initially optical disks will be used to distribute motion pictures in digital format. In the long run, he says, fiber optic landlines and/or satellite distribution might prove to be more efficient. However, satellite distribution will require exhibitors to download, decompress, decrypt and store motion pictures digitally before they are projected.

"The system needed to perform those tasks must be open, scalable, affordable, high quality and designed to satisfy universal standards that are still being developed," he says. "It won't happen quickly or easily, and significant investments will be required. However, if we make this an industry-wide initiative, when digital projection becomes commercially viable we'll be ready."

Haile believes that the agreement between Kodak and QUALCOMM will help ensure the continual evolution of digital cinema.

"We are proud that Kodak recognizes the potential of our compression algorithm," says Haile. "When a company like Kodak makes this kind of commitment of resources, it has to be justified with realistic business expectations. We anticipate the industry will applaud the fact that Kodak and QUALCOMM are working together to ensure that digital cinema enhances the movie-going experience."

Rodli says that Kodak is committed to driving the evolution of both film and digital imaging technologies, and adds that he expects both forms of media to co-exist deep into the foreseeable future.

"In our work with QUALCOMM and other companies and industry organizations, our goal is to make digital projection better than film," he says. "At the same time, we are making vast improvements in film technology. If we can continue to advance film technology, and, at the same time, help digital cinema deliver on its promise, the real winner will be the movie audience."

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include integrated CDMA chipsets and system software; technology licensing; Eudora(R) email software for Windows(R) and Macintosh(R) computing platforms; and satellite-based systems including OmniTRACS(R) and portions of the Globalstar(TM) system. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 1999 FORTUNE 500(R) company traded on the Nasdaq under the ticker symbol QCOM.