SIZZLING SUMMER SPURS RECORD 2007 BOX OFFICE

This summer the cinema industry will witness its biggest box office in history. Driven by the fantasy and comedy genre films - which are voraciously consumed by audiences worldwide - Cinema Mucho Gusto is predicting that the 2007 box office will top $25 billiin globally and hit $10 billion in the U.S. And better still, that the $2+ billion increase over last year will be due principally to increased attendance vs. higher admission pricing.

We are also predicting that cinema's activities including: pre-feature entertainment, digital film festivals, video gaming activities, auditorium rentals, etc. will continue to enjoy strong growth and we anticpate revenue from these activities growing by 15-20% in 2007 and annually through 2010.

THE SPLICE IS RIGHT

Beginning June 1, EEC will launch "The Splice Is Right," a web blog devoted to facilitating transactions between buyers and sellers of cinema equipment and services. If you are in need of cinema projection or sound equipment, concession equipment, lobby accessories, as well as spare parts or want to sell any of these items, you will be able to log on to accomplish transactions. We will keep you posted on its impending premiere.

PIRACY: HURTING OR HELPING HOLLYWOOD?

According to the June 2007 issue of The Atlantic, all it takes is one culprit in New Jersey to share a newly released film with 30,000 people globally. The culprit directly recorded the film reels onto eDonkey, a person-to-person file sharing network.

While file sharing has steadily grown over the past decade, downloading movies is at a minimum level due to the amount of time it requi