DIC Pacts Deal With AEC to Reach New Retail & Digital Channels

DIC Ent. inked a distribution deal with Alliance Ent. Corp. (AEC), a Source Interlink company through its NCircle Ent. division, for the home entertainment and non-exclusive digital rights in the U.S. and Canada for select animated and live-action titles in DIC's library. DIC properties will access for the new first time distribution at brick and mortar retail outlets, as well as options for delivery on digital platforms in the U.s. and Canada.

As part of the three-year, multi-million dollar deal, AEC, a leading home entertainment distributor that supplies 5,000 U.S. storefront retailers as well as the leading online retailers, will have a first-look option to distribute, for home video and in digital formats, the newly produced television series for "KOL's Secret Slumber Party" programming block on CBS. AEC may also distribute direct-to-video properties, including (and not limited to) THE SECRET MILLIONAIRE'S CLUB, as well as content from DIC's extensive library of programming, such as SABRINA THE ANIMATED SERIES, HEATHCLIFF, SONIC THE HEDGEHOG and SUPER MARIO BROS.

AEC will market and distribute the properties to major mass market and specialty retailers, including national and regional supermarket and drugstore chains with the first product releases scheduled for first quarter 2007. AEC may also option to deliver DIC content via digital streaming and downloads.

"AEC is recognized as the premiere wholesale distributor of home entertainment product to retail markets, with unique capabilities that will ensure widespread retail placement for DIC properties," said Nancy Fowler, DIC's head of global sales. "Their distribution expertise will result in an ongoing retail presence for both classic catalog titles and newly produced properties, and we are thrilled to have a partner of AEC's caliber onboard to guide our product into the marketplace."

"AEC's arrangement with DIC further fortifies our reputation in the retail distribution marketplace," said Debbie Ries, svp/gm, NCircle Ent. "We are excited to offer our retailers top quality children's and family products from DIC's library, and to leverage our access to new channels of retail distribution on DIC's behalf. We look forward to working with the talented people at DIC to continue to build powerful consumer brands at retail. "

DIC Ent. (www.dicentertainment.com), a fully-integrated global brand management company, is dedicated to creating, developing, producing, distributing, marketing and merchandising family-based intellectual properties. DIC is the worldwide licensor for brands such as McDonald's, Strawberry Shortcake, and Classic Trolls. DIC has become an industry leader in developing quality content for kids with an extensive library of more than 2,800 hours of animated programming. iDIC and AOL's kids' online destination "KOL" have formed a co-production partnership that will launch the new branded kids' programming block, "KOL's Saturday Morning Secret Slumber Party for CBS."

DIC has developed strategic partnerships with key broadcast partners throughout North America, Europe, Asia, Latin America, Africa and Australia. DIC recently announced the acquisition of Copyright Promotions, a Pan-European licensing agency that represents the licensing rights of a broad portfolio of world-renowned companies including DreamWorks Animation, MGM, Marvel, Sony, Twentieth Century Fox, Viacom and The Football Assoc. DIC is headquartered in Burbank, California, with offices in New York City, Paris and London.

AEC maintains the largest in-stock catalog of CDs and DVDs in the U.S., with a combined total of more than 335,000 titles. Trading partners include the major record labels and movie studios. The company was named the 2006 Large Wholesaler of the Year by the National Assoc. of Recording Merchandisers.

NCircle Ent., an Alliance division, licenses family, children and special interest programming products to the home entertainment market.

Alliance (www.aent.com) is a subsidiary of Source Interlink Companies Inc., a leading marketing, merchandising and fulfillment company of home entertainment products which, in addition to music CDs and DVDs, also distributes magazines and books and provides a range of in-store services to retailers throughout North America. With an annual run rate revenue of more than $2 billion, Source Interlink provides its products and services to 110,000 retail store locations throughout North America.

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