Company Overview

 2007 Annual Report

National CineMedia, Inc. operates the largest digital in-theatre network in North America that allows us to distribute advertisements and other content for our advertising, meetings and events businesses utilizing our proprietary digital content network. We have long-term exhibitor services agreements with our founding members-AMC, Cinemark and Regal, the three largest motion picture exhibition companies in the U.S.-and multi-year agreements with several other theatre operators whom we refer to as network affiliates. The exhibitor services agreements grant us exclusive rights, subject to limited exceptions, to sell advertising and meeting services and distribute entertainment programming in those theatres. The network affiliate agreements grant us exclusive rights, subject to limited exceptions, to sell advertising on their theatre screens. We currently derive revenue principally from the following activities:

• Advertising: We develop, produce, sell and distribute a branded, pre-feature entertainment and advertising program called "FirstLook," along with an advertising program for our lobby entertainment network and various marketing and promotional products in theatre lobbies;
• CineMeetings: We facilitate live and pre-recorded networked and single-site meetings and corporate events in the movie theatres throughout our network; and
• Fathom (Digital Programming Events): We distribute live and pre-recorded concerts, sporting events and other entertainment programming content to theatres across our digital network.