Dear Lions Gate. We ask that you support the HD DVD Hi Definition disc by releasing titles to this format. While we understand that you initially decided to support Bluray exclusively, the situation today is significantly different than promised a year ago. HD DVD has successfully launched to market, but we believe that Bluray still has grave problems to overcome. Given this situation, we feel you may lose sales if you only support Bluray. 1) HD_DVD players have shipped earlier (April 15th 2006) and are available at a much lower price ($500, vs $1,000 to $1,800 for Bluray players). This will ensure rapid adoption. Tens of thousands of players have already been sold and hundreds of thousands of movie titles have been purchased. The vast majority of users are pleased with their players. http://www.avsforum.com/avs-vb/showthread.phpt=670945 2) HD DVD delivers tremendous quality. The majority of the releases have been on 30 Gig Dual Layer discs, encoded in the VC1 video codec. Video and audio quality has surpassed even D-Theater tapes. 3) Conversely, Bluray does not seem to have solved some key manufacturing problems for Dual Layer discs yet, and will be launching their format, in June or July, on single-layer 25 Gig discs. Worse, they apparently will launch using Mpeg 2 on this smaller disc. We believe these factors may result in poorer Bluray quality at launch than HD DVD discs. Therefore, some users have chosen to buy only 1st Gen HD DVD players, but not 1st Gen Bluray players. Sony has stated that they feel 18 Mbps is the best data rate to run Mpeg 2 at http://www.soundandvisionmag.com/article.aspsection_id=2&article_id=1441&page_number=2 4) Online posts indicate that the first Bluray Single-disc releases may only be 20 Gigs, as they have reduced the size of the data layer, to reduce read problems at the outer edges of the disc and increase production yields. http://www.hddvd.org/messageboard/topic/10/22837/ 5) It is said in some forums that production yields on Bluray Single Layer discs may be only 33% to 50%. http://www.avsforum.com/avs-vb/showthread.phpp=7707846&&#post7707846 For Dual-Layer BD ROMs, it is said that the rejection rates in manufacture are currently between 60% and 75%. http://www.emediawire.com/releases/2006/4/emw377427.htm and http://www.avsforum.com/avs-vb/showthread.phpp=7667705&&#post7667705 6) HD DVD player specifications mandate the inclusion of decoders for some of the newest

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