CINRAM INTERNATIONAL TURNS PAGE TO E-PUBLISHING AS PART OF ITS DIGITAL EXPANSION

TORONTO, May 24, 2011 /CNW/ - In the next chapter of its digital initiative, Cinram International, Inc. announced today its official launch into e-publishing and enhanced book app development.  Partnering with major content owners and publishers to develop interactive book products, the company will leverage the proven track record of 1K Studios, part of Cinram Digital Media,  to create rich interactive experiences in fiction, non-fiction and educational content.

"Cinram has always been about delivering 'todays' entertainment and today, that includes content on-the-go," said Steve Brown, Chief Executive Office, Cinram International, Inc. "Adding book content in the form of e-publishing products and enhanced apps is a logical move with our extensive entertainment and publishing background.  We're confident with 1K at the helm, that we will develop and deliver some of the best experiences in the category."

The consumption of handheld entertainment rocketed to new heights since last year's release of the iPad, creating an unprecedented demand for new apps and engaging content, with book-related material topping the list. 1K's experience includes developing creative, captivating interfaces and enhanced content with strong back-end programming for the web, Blu-ray, and iTunes Extras.

1K is adapting these capabilities to e-publishing to offer an intuitive and compelling overall user experience.  In addition to the digital presentation of a book, 1K looks to add rich content including footage and interactive materials to create a visual and tactile reading event.  The company's advance into e-publishing began last year with design work for Penguin Books and Starz Digital Entertainment's Pillars of the Earth Amplified Edition. The relationship with Penguin continues with two projects currently in development.

"We're thrilled to be playing a role in a transformative time for the Publishing industry," said Matt Kennedy, President of 1K Studios.  "Our goal is to support enhanced features and supplemental content for books in a way that emphasizes respect for the proven core reading experience. "

With e-publishing and the Digital Media Group, Cinram is broadening its client offering from physical manufacturing and logistics into digital services and product innovation.  The company provides an array of media supply chain services to the world's largest movie, music, games and book companies, including audio book manufacturing and distribution services for many top publishers.  The acquisition of 1K and the recent addition of key personnel to the Digital Media Group have positioned Cinram to embrace the growing importance of digital media platforms for its clients.

About 1K

1K Studios provides creative and technical services to help media and technology companies release content in different venues including digital downloads, mobile and tablet apps, advanced Blu-ray discs, stereoscopic 3D and social media.  1K's extensive experience includes developing creative, captivating interfaces and enhanced content with strong back-end programming for the web, Blu-ray, and iTunes Extras.

About Cinram

Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is one of the world's largest providers of pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded. DVDs, Blu-ray Disc, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world Cinram now also provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiaries. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. The Cinram group of companies now also incorporates 1K Studios, a digital media firm based in Los Angeles specializing in building enhanced consumer experiences for movies, TV shows, music, books and games. For more information, visit www.cinram.com.

Certain statements included in this release constitute "forward-looking statements" within the meaning of applicable securities laws.  Such forward-looking statements include statements concerning the possible effects of the transactions described herein, and the likelihood of their successful completion. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, or results of the multimedia duplication/ replication industry, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: the Fund's ability to retain major customers; general economic and business conditions, which will, among other things, impact the demand for the Fund's products and services; multimedia replication industry conditions and capacity; the ability of the Fund to implement its business strategy; the Fund's ability to invest successfully in new technologies and other factors which are described in the Fund's filings with the securities commissions.  These risks may affect the achievement of the expected results of the transactions described herein.  There can be no assurance that the said transactions will be successfully completed or that, if completed, the expected consequences will result in whole or in part, and the deviations from such expectations may be material.


SOURCE Cinram International Income Fund

For further information:

John H. Bell
Tel 416.332.2902
johnbell@cinram.com

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Cinram International Income Fund

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