Titles Purchased Will Be UltraViolet®-Enabled as of March 2013----- Users Can Upgrade Existing Warner Bros. Titles in Their Kaleidescape Digital Libraries to UltraViolet and Enjoy Them Across Multiple Devices

SUNNYVALE, Calif. - December 11, 2012 - Kaleidescape, Inc. today announced it has signed a multi-year agreement with Warner Bros. Digital Distribution to offer films for purchase. In addition, the company will upgrade all Warner Bros. titles purchased through the Kaleidescape Store to UltraViolet in March 2013 - giving users a powerful way to enjoy their collection across their various devices. This agreement also enables a Kaleidescape owner to convert Warner Bros. titles that were previously imported to their Kaleidescape movie server to UltraViolet or to upgrade their Warner Bros. titles from standard definition to high definition - both for a small fee.

UltraViolet is an industry wide initiative that was launched last year in the United States. It gives consumers the ability to buy and collect movies and TV shows from any authorized retailer, and download or stream the content to a wide range of connected devices such as compatible Internet-connected TVs, Blu-ray players, smartphones and tablets. Over seven million consumers have registered for UltraViolet to unlock their digital film and television libraries and enjoy a more convenient and accessible entertainment experience.

"We couldn't be more excited about working with Warner Bros. and offering this extensive catalog of well-known and well-loved titles to our customers," said Michael Malcolm, Founder, Chairman and CEO of Kaleidescape. "In addition, the inclusion of UltraViolet in our service will give owners of Kaleidescape movie servers a whole new way to enjoy their content."

Through this licensing agreement, Kaleidescape System owners will initially have the ability to buy thousands of Warner Bros. titles via the Kaleidescape Store including the "Harry Potter" series and "The Lord of the Rings." When UltraViolet functionality is launched in March 2013, available titles that are purchased now will be automatically upgraded to UltraViolet at no additional charge. These titles can then be easily accessed through UltraViolet compatible applications including Flixster - one of the most popular movie discovery applications available. With over 60 million downloads of the app to date, Flixster makes finding, managing and enjoying movies and TV shows simple.

"Kaleidescape is well-known for its user-friendly system that lets consumers access and watch movies from their home collections with the touch of a button," said Thomas Gewecke, President, Warner Bros. Digital Distribution. "Now their users have the same one-touch simplicity with purchasing new movies electronically. UltraViolet will extend its ease-of-use further, with automatic upgrades for purchased titles and even more ways to watch movie libraries both at home and on the go."

About Kaleidescape
Kaleidescape is pioneering the development of movie servers that redefine how film enthusiasts purchase, organize and enjoy their movie collections. Featuring a breakthrough user interface that gives viewers unprecedented flexibility and control over the movies they watch, the Kaleidescape system makes it easy for customers to select and enjoy films from their entire collection of DVD, Blu-ray and downloaded movies from any television in the home. Founded in 2001 and headquartered in Sunnyvale, California, Kaleidescape sells its products through custom installation dealers and distributors throughout the world. For more information, please visit www.kaleidescape.com.

About Warner Bros. Digital Distribution
Warner Bros. Digital Distribution (WBDD) oversees the electronic distribution of Warner Bros. Home Entertainment Group's content through Video-On-Demand, Pay-Per-View, Electronic Sell-Through and Subscription Video-On-Demand via cable, satellite, online and mobile channels. WBDD also distributes content through third party digital retailers and licensees. A worldwide industry leader since its inception, WBDD also manages the Studio's E-commerce sites that include WBShop.com and WarnerArchive.com. Twitter: @WBDigitalDist

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