TORONTO, Feb. 1 /CNW/ - Cinram International Income Fund (TSX: CRW.UN) announced today that it has received written notice from Warner Home Video Inc. ("WHV") that WHV has exercised its option to terminate its service agreements on July 31, 2010. The notice covers all Cinram entities globally and will directly impact operations in North America, Mexico, UK, France, Germany and Spain.
WHV revenues for 2009 represented approximately 28% of the total consolidated revenues of Cinram International Inc.
Commented Steve Brown, CEO, "While we are disappointed with the decision by WHV to end our over 6 year relationship as their exclusive service provider of standard DVD products and distribution services, we will nevertheless be working closely with WHV to ensure an orderly transition of the services and ensuring that all affected employees and other stakeholders are given the absolute greatest consideration during this process.
Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is the world's largest provider 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, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. Cinram also provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiary. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit our website at www.cinram.com.
SOURCE Cinram Group Inc.
For further information: For further information: John H. Bell, Tel: (416) 332-2902, firstname.lastname@example.org