[February 13, 2013]

Cinedigm Announces Third Quarter Fiscal Year 2013 Financial Results

Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital distribution revolution, today announced financial results for the third quarter fiscal 2013 which ended December 31, 2012.

Quarterly Highlights Include:

• Consolidated revenues up 17% to $23.2 million and consolidated adjusted EBITDA increased to $14.5 million from $14.3 million in the year-ago period
• Non deployment revenues up 53% to $9.6 million and non-deployment adjusted EBITDA up 58% from year-ago period to $2.2 million
• Cinedigm's domestic digital cinema deployment currently totals 11,697 screens installed with 269 exhibitor partners; 835 screens installed in third quarter
• Cinedigm's movie release, "The Invisible War," nominated for Academy Award® in the Best Feature Documentary category
• 13 independent films acquired to date

Third Quarter Fiscal 2013 Results

Revenues for the third quarter of fiscal 2013 were $23.2 million, a 17% increase from $19.8 million in the third quarter a year ago. The increase in revenues was primarily the result of strong performance in Cinedigm's Entertainment Group (CEG), including results from the New Video acquisition, which closed in April 2012, as well as continued steady results from the Company's recurring revenue digital cinema servicing and software platforms.

In the third quarter of fiscal 2013, Adjusted EBITDA from continuing operations totaled $14.5 million, an increase from $14.3 million in the year-ago period. Excluding Cinedigm's deployment business, Adjusted EBITDA from continuing non-deployment operations was $2.2 million, an increase of 58% from the year ago period and an increase of 81% from the previous quarter. Non-Deployment EBITDA in the quarter included $0.4 million of film distribution costs incurred in the quarter as CEG ramped up its film releasing business, building toward a goal of 20-25 releases per year. These third quarter distribution costs were incurred in advance of any home entertainment revenues for those film releases, which will be realized in subsequent periods.

Consolidated net loss decreased to $1.8 million or $0.03 per share for the quarter compared to a consolidated net loss of $10.6 million or $0.28 per share in the comparable prior year period, and a net loss of $2.6 million or $0.06 per share in the preceding quarter.

Digital Cinema Deployment Highlights:

• Cinedigm experienced the third highest installation quarter in its history, installing 835 digital systems as the Phase 2 installation period ended at January 31^st, 2013.
• Cinedigm's US and Canadian digital cinema deployment currently totals 11,697 screens installed with 269 exhibitor partners, representing in excess of 70% of all North American exhibitors and approximately 40% of all North American digital cinema screens.
• Cinedigm is finalizing contracts to bring its Virtual Print Fee (VPF) program to drive in movie theatres.
• Also in the quarter, the Company signed its first large scale international deployment with Caribbean Theaters, with installations to commence in the fourth quarter.

Entertainment Distribution Highlights:

• The Company's fiscal year 2013 movie release, "The Invisible War," was nominated for an Academy Award® in the Best Feature Documentary category and is one of the best reviewed movies of the year.
• Cinedigm released two films theatrically in the third quarter fiscal 2013; "Citadel" and "In Our Nature."
• Cinedigm distributed 2,830 hours of film and TV content to more than 22 digital partners.
• Through the end of the quarter, Cinedigm's live content on digital platforms totaled over 2,130 unique films and 365 seasons of TV comprising over 5,732 episodes.
• Cinedigm acquired 714 hours of new movies and TV series, including the classic Toei Anime franchise "Digimon," 22 new festival films from our Sundance partnership, and the top-rated series "Coast Guard Alaska" & "Coast Guard Florida" from Al Roker Entertainment.
• With the recently acquired content, the Company's total library is over 18,943 movies and television episodes.
• Digital revenues increased 50% year-to-date versus industry average of 28%.

Software Highlights:

• Dan Sherlock joined in January as the new president of the software division.
• Signed Southern for our exhibitor management system and our TCC-Enterprise system.
• Signed LD Entertainment for our TDS product.
• Internationally, software installations began in Ireland and the UK. The quarter also saw the Company sign the first large scale international deployment with Caribbean Theaters, who will begin installing our software in our fiscal fourth quarter. The company expects Australian and New Zealand installations to also commence in the fourth quarter.

"We are pleased that each of our divisions made significant operational progress in the last quarter. We exceeded our goals for the now complete Phase 2 domestic deployment, expanded our footprint internationally, released two independent films domestically with strong ancillary market pre-sales, grew our feature distribution slate to 13 titles and further expanded our industry leading home entertainment library with numerous film and television title acquisitions," said Chris McGurk, Chairman and CEO. "Importantly, garnering an Academy Award® nomination for 'The Invisible War' has both dramatically increased awareness of the critical issue of military sexual assault and underscored that in year one as a complete digitally-focused studio, Cinedigm is already making a big impact on the entertainment business."

"We've consistently stated that fiscal year 2013 is a year focused on both investment and growth," added Adam Mizel, Chief Operating Officer and CFO. "Cinedigm continues to benefit from the recurring revenues generated by its installed systems, software maintenance fees, and the inherent operating leverage embedded in its business model. With the completion of our domestic Phase 2 deployment at January 31st, we are focused on expanding our international servicing partnerships, as well as our exhibition and distribution software client base. In addition, our strong independent film slate and recent home entertainment acquisitions are setting us up for a strong start to fiscal 2014."

Nine-Month Fiscal 2013 Results

For the first nine months of fiscal 2013, revenues increased $7.8 million to $66.7 million as compared to $58.9 million for the same period year ago. Adjusted EBITDA from continuing operations year-to-date was $42.1 million, compared to $44.8 million in the first nine months of the prior year reflecting the reduced virtual print fees due to unexpected shifts in the breadth and timing of various major studio movie releases in July and August. Consolidated net loss decreased to $9.5 million or $0.21 per share for the first nine months of the fiscal year compared to a consolidated net loss of $17.3 million or $0.49 per share in the comparable prior year period.

Fiscal 2013 Outlook

Cinedigm is reaffirming its fiscal 2013 guidance and expects consolidated GAAP revenues including its deployment units of $91-$97 million, and consolidated Adjusted EBITDA of $57-$59 million in Fiscal 2013. The Company is also reaffirming that it expects fiscal 2013 Adjusted EBITDA from non-deployment operations of $6.7-$7.7 million.

Adjusted EBITDA is defined by the Company for the periods presented to be earnings before interest, taxes, depreciation and amortization, other income, net, stock-based expenses and compensation, merger and acquisition costs, and certain other items. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of Adjusted EBITDA to U.S. GAAP net income (loss). The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the U.S. GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with U.S. GAAP.

Conference Call

Cinedigm will host a conference call to discuss its financial results at 4:30 p.m. EST on February 13, 2013. The conference call can be accessed by dialing (877) 754-5303 or for international callers by dialing (678) 894-3030 at least five minutes prior to the start of the call. No passcode is required. The earnings call will also be broadcast live over the Internet and can be accessed on the Investor Relations section of the Company's Web site at http://investor.cinedigm.com/events.cfm. To listen to the live webcast, please visit the site prior to the start of the call in order to register, download and install any necessary audio software.

For those unable to participate during the live broadcast, a replay will be available beginning February 13, 2013 at 5:30 p.m. EST, through February 20, 2013 at 11:59 p.m. EST. To access the replay, dial (800) 585-8367 (U.S.) or (404) 537-3406 (International) and use passcode: 96792519.

About Cinedigm

Cinedigm is a leader in the digital entertainment revolution. Cinedigm's pioneering digital cinema deployment and servicing efforts, and our state-of-the-art distribution and exhibition software, are cornerstones of the digital cinema transformation. Cinedigm is also the leading digital aggregator of independent content in the world, providing end-to-end digital content delivery to theaters, across digital and on-demand platforms, and on DVD/Blu-ray. Through partnerships with iTunes, Netflix, Amazon, Google (News - Alert), Hulu, Vudu, Xbox, Playstation, and others, Cinedigm reaches a global digital audience. The company's 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. CEG is proud to distribute many Oscar®-nominated films including "The Invisible War," "Hell and Back Again," "GasLand," "Waste Land" and "Paradise Lost 3: Purgatory." Upcoming multi-platform releases include "Don't Stop Believin': Everyman's Journey," "Come Out And Play," "Arthur Newman," and "Violet and Daisy." Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of Cinedigm Digital Cinema Corp www.cinedigm.com. [CIDM-E]

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 Cinedigm's filings with the Securities and Exchange Commission, including Cinedigm's 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 Cinedigm's 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 which Cinedigm does business, among other things. These statements are not guarantees of future performance and Cinedigm undertakes no specific obligation or intention to update these statements after the date of this release.

Following is the reconciliation of the Company's consolidated Adjusted EBITDA to consolidated GAAP net loss from continuing operations for the three and nine months ended December 31, 2012 and 2011:

Following is the reconciliation of the Company's consolidated Adjusted EBITDA to consolidated GAAP net loss from continuing operations:

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