China Partner to Fund Approximate $50 million for New Production Facility
PORT ST. LUCIE, Fla., April 25, 2012 Digital Domain Media Group, Inc. (NYSE: DDMG), a leading digital production company focused on visual effects, original content animation and major studio co-productions, today announced that it has executed final definitive agreements in connection with its Joint Venture Agreement with Beijing Galloping Horse Film Co., Ltd., a major participant in the high-growth China film market.
The agreement includes a license for the new joint venture to use Digital Domain Media Groups patented technology for converting 2-D images into 3-D, which will enable the joint venture to participate in the rapidly growing market for 3-D films. Digital Domain Media Group holds the most comprehensive portfolio of patents, covering effectively all modern processes of 2-D to 3-D conversion.
The joint venture between Galloping Horse and Digital Domain Media Group is the first large-scale initiative between a leading global visual effects company and a China-based film production company. It is designed to address Chinas quickly increasing demand for large budget feature films, including the very best of visual special effects and computer-generated animation imagery.
Digital Domain Media Group and Beijing Galloping Horse Film Co. will each own 50 percent of The Digital Domain Galloping Horse Studio. Digital Domain Media Group will contribute its technology and expertise in operating a VFX operation, including the companys patented technology for converting 2-D images into 3-D images. Digital Domain Media Group will also be responsible for designing the facility and for training personnel. Beijing Galloping Horse Film Co. will provide the land for the Studio and will be responsible for the construction and basic build-out costs for the new facility, expected to require approximately $50 million in total investment from Galloping Horse.
This agreement, which marks the Digital Domain Media Groups first step into the high-growth film market in China, provides the company with access to a source of efficient capital in China and provides Beijing Galloping Horse Film Co. with access to the core U.S. film industry. This joint venture is another example of the Digital Domain Media Groups use of strategic partnerships to implement its growth strategy.
About Digital Domain Media Group
Digital Domain Media Group (DDMG: NYSE) leverages its expertise in digital visual effects (VFX) and computer-generated (CG) animation across a group of interrelated businesses. At its foundation is Digital Domain Productions (DDPI), an award-winning digital production company founded in 1993. This leading provider of visuals has contributed to more than 90 major motion pictures, including Titanic, the Transformers series, Real Steel and TRON: Legacy, as well hundreds of commercials. DDPI also converts two-dimensional (2D) imagery to three-dimensional (3D) imagery and holds key patents in this area. Mothership, a DDPI subsidiary, focuses on creating advertising, entertainment and branded content from concept to completion, across multiple media platforms. DDMG, its work and its employees have been recognized with numerous awards, including seven from the Academy of Motion Picture Arts and Sciences. The company is building on its success in VFX to participate as a co-producer in major studio productions and is currently in production on the upcoming live-action sci-fi feature film Enders Game. DDMG is also applying its CG expertise to produce original, family-friendly animated feature films at its subsidiary Tradition Studios. The first movie, The Legend of Tembo, is in pre-production and two more features are in development. The companys education subsidiary, the Digital Domain Institute, sets a new standard in digital media education through a pioneering public-private partnership with The Florida State University College of Motion Picture Arts. DDMG is expanding its worldwide footprint of the highest quality visual effects and animation at the lowest possible cost through global partnerships in India and China. The company has studios in Los Angeles, San Francisco, Florida, Vancouver, Mumbai and London, and is currently establishing a studio in Beijing. http://www.ddmg.co
About Beijing Galloping Horse Film Co., Ltd.
Beijing Galloping Horse Film Co., Ltd. is a leading company in the film and TV industry in China. With nearly 20 years of industry experience, Galloping Horse is actively engaged in film and television financing, production, distribution, as well as advertising and magazine publishing. Recently, it has added cinema construction, new media and animated content production, as well as talent management into its growing business portfolio. Galloping Horse has earned itself a high reputation in the Chinese media industry by producing contents that are both critically acclaimed and commercially successful. The company has signed exclusive deals with some of the most prominent producers, directors and writers in China, including John Woo (first look), Zhang Yibai, Ning Hao, Liu Heng, Lu Wei, etc. This strategy gives Galloping Horse a competitive advantage over other players.