Hollywood Intermediate (OTC: HYWI) Announced Today Its Matchframe Digital Intermediate Division the First U.S. Based Company to Purchase New Color Grading System Technology, Used to Complete Steven Seagal's New Film, 'Mercenary For Justice' BURBANK, Calif., Dec. 14 /PRNewswire-FirstCall/ -- Recently HYWI became the first U.S. based company to purchase new Digital Intermediate technology from the United Kingdom when it acquired a new Baselight Color grading system. The company now has added a film scanner and two additional color grading/conform stations all using the superior "Truelight 3D color cube technology. The company says the demand for DI services for both big-budget and independent films has grown exponentially and has fueled the acquisition of these additional systems with their superior technology. This addition of this technology will allow Matchframe DI to increase efficiencies and production output while servicing its Southern California Motion Picture cliental. The superior "Truelight 3D color cube technology used by the Baselight systems give Matchframe DI the ability to accurately view by emulation, all future deliverables including theatrical film and high definition, thereby giving their clients an accurate response for the work performed. As "First to Market" with this technology in the US, Matchframe DI's mission is to create a barrier to entry for competitors by having superior technology and a competitive advantage thus capturing significant market share in the Southern California DI market, a hotbed for post production services. Hollywood Intermediate president David Waters says, "Our DI business is increasing all the time as the DI industry is experiencing exponential growth. This purchase has been an important part of that growth, and by bringing in the full complement of Digital Intermediate systems, we can meet all of our clients' needs." Hollywood Intermediate has used its new film resolution scanner to complete work on "Mercenary For Justice" staring Steven Seagal, "Holly" staring Ron Livingston and Chris Penn, and "The Far Side Of Jericho", a new feature film western. "Holly" and "The Far Side Of Jericho" were both shot and scanned "3-PERF", "a growing trend in Hollywood attributed to the popularity of digital intermediate technology," said Jim Delany, Hollywood Intermediate's chief operating officer. 3-PERF Motion Picture films are shot with three perforations or sprocket holes per film frame allowing filmmakers to photograph 25% more image than the same amount of 4-PERF films. This also provides for a 25% cost savings in motion film stock, laboratory developing and transfers to video. While 3-PERF has been around for a long time and often used for television series shot on film, it has been mostly impractical for theatrical films due to the high cost of a laboratory 'blow up' of the film". The DI process has changed all that says Delany. "We simply scan the film at 3-PERF, render, and film to 4-PERF 35mm negative. It's a seamless process here at Hollywood Intermediate." Hollywood Intermediate's additional digital intermediate systems have added to the company's efficiency and production pipeline capacity as evidenced by recent DI work on "Haven" staring Bill Paxton and Orlando Bloom. "We are constantly seeking to improve efficiency for our digital intermediate technology while maintaining scalability as well as our high quality standards," says Waters. Currently, the company has multiple feature film projects in its DI production pipeline for all processes including scanning, conforming, color grading, quality control, and HD mastering for upcoming theatrical releases in 2006. About Hollywood Intermediate Hollywood Intermediate's provides a proprietary technology of Digital Intermediate services to feature filmmakers for post production for film mastering and restoration. This technology gives the filmmakers total creative control over the look of their productions. Whether shooting on film or acquiring in HD or SD video, Hollywood Intermediate puts a powerful cluster of digital tools at the director's disposal to achieve stunning results on the big screen. Matchframe Digital Intermediate, a division of Hollywood Intermediate, Inc., packages a full array of postproduction services with negative handling expertise and cost-effective 2K digital intermediate and 35mm film out systems. The Digital Intermediate process eliminates current post-production redundancies by creating a single high-resolution master file from which all versions can be made including all theatrical and High Definition formats. By creating a single master file with resolution higher than the current High Definition broadcast standards, the DI master file enables cinema and television distributors, to extract and archive all current and future cinema and television formats including Digital Cinema, Television and High Definition. Disclaimer Regarding Forward-Looking Statements: This announcement may contain certain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated. Forward-looking statements speak only as of the date the statement was made. The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. If the Company does update any forward-looking statement, no inference should be drawn that the Company will make additional updates with respect to that statement or any other forward-looking statements. DATASOURCE: Hollywood Intermediate CONTACT: David Waters, CEO of Hollywood Intermediate, +1-818-240-0434, Web site: http://www.hwdintermediate.com/

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