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REAL D ACQUIRES COLORLINK

World's Leading 3-D Company Accelerates Pace of Innovation and Leading-Edge Enhancements to the REAL D 3-D Experience

Los Angeles, CA (March 8, 2007) - REAL D, the leader in digital 3-D technology, today announced its acquisition of Boulder, Colorado-based ColorLink, one of the world's leading inventors and suppliers of photonics-based solutions. The acquisition will significantly enhance REAL D's product offerings and production capability. Under the agreement, ColorLink will become a subsidiary of REAL D and Leo Bannon, president and CEO of ColorLink, will become chief operating officer of REAL D. Financial terms of the deal were not announced.

The acquisition includes ColorLink's R&D campus in Boulder as well as its manufacturing facilities in Tokyo and Shanghai. REAL D also gains a broad range of published patents covering a significant trove of optical, liquid crystal and light-based technologies In addition, ColorLink offers a significant line of 3-D imaging components for entertainment, gaming, industrial, and scientific applications.

"Adding ColorLink truly helps us deliver on our commitment to being the premier visual brand," stated REAL D Chairman and CEO Michael Lewis. "Their world-class scientists and patented technology will allow us to continue to lead the way with the most cutting-edge 3-D experience and technologies."

"This is a natural fit for ColorLink," offered Bannon. "The premise of all our work has been to provide key technologies to achieve the highest quality images possible. We look forward to working with REAL D on this collective goal."

"We have been working closely with ColorLink's team for several years, and their approach to light management and design is truly revolutionary," said REAL D President Joshua Greer. "We look forward to pushing new visual frontiers together in the years ahead."