Distribution and VisionTM Services for Major French Home Entertainment Company

TORONTO, May 11 /CNW/ - Cinram International Inc, one of the world's largest manufacturers and distributors of packaged media, is delighted to announce a new multi-year distribution agreement with TF1 Vidéo in France.

The agreement, which commences on 1st July this year, will include a full order to cash distribution service including Cinram's proprietary VisionTM business intelligence offering. The territories covered by the agreement include France, Andorra, Belgium, Luxembourg, Monaco and Switzerland.

A subsidiary of TF1, France's most popular domestic television network, TF1 Vidéo is a major home entertainment label in France and beyond. The company's inventory includes high profile French theatrical and television releases together with the rights to major film and television content from US and international markets. The signing of the Cinram agreement demonstrates a move by TF1 to regain a more active role in the supply chain management of its products after the decision not to renew a joint venture with their incumbent service provider. The contract with Cinram will enable TF1 Vidéo to tailor its distribution model to benefit sales of both its new release and catalogue product and more effectively serve its customer base.

Cinram's offering includes a highly tailored approach to physical distribution, where client requirements can be closely matched to its systems and client service functions. Cinram's business intelligence tool, Vision™, captures information on buying patterns, analyzes the data and enables demand planning and forecasting for each point within the supply chain. Re-ordering is automated and also includes Vendor Managed Inventory services. Cinram's Vision™ tool has produced a significant uplift in results for its clients, delivering sizeable increases in sales, substantial reductions in retail inventory and has been proven to facilitate decreased returns over similar stores and periods.

"We are very pleased to welcome TF1 Vidéo to Cinram France," comments Steve Brown, CEO of Cinram International Inc. "From our highly developed business management systems, to the client service offered by our enthusiastic teams, Cinram is characterized by the flexibility of its operations. We believe that the ability to help clients respond quickly to market conditions will support TF1 Vidéo in its plans to grow its high profile inventory of physical media over the coming years." Pierre Faguer, Managing Director of Cinram France comments, "Cinram France is able to offer TF1 Vidéo a secure and stable base from which to grow sales of its physical product. We look forward to demonstrating the effectiveness of our operations in helping TF1 Vidéo in its plans to develop in the market."

"TF1 Vidéo has created a comprehensive plan to develop its business across every area, from physical media, to digital content distribution. As an independent vendor and a company highly recognised for the quality of its supply chain management services to the home entertainment industry, Cinram has an established reputation, and as such, the capability to act as a strong partner in our future plans," comments Daniel Preljocaj, Managing Director of TF1 Vidéo.

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, 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

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

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Cinram International Income Fund

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