Technicolor Sells Stake in Screenvision

In exchange for a portion of its 50% ownership in Screenvision, Technicolor will receive $60 million in cash and will retain an 18.8% interest in a newly-formed Screenvision holding company.

Technicolor will continue to be Screenvision’s provider of both film and digital services. The film processing & distribution agreement extends through end of life.

Technicolor will retain one seat on the Board of Screenvision

Technicolor will apply the $60 million proceeds towards repayment of the DPN.

“Following the announcement of our broadcast business disposal in July, the sale of our stake in Screenvision is another important milestone in our disposal program”, said Frederic Rose, Chief Executive Officer of Technicolor. “We will keep a minority stake in Screenvision due to our close business relationship and will continue to be Screenvision’s provider of both film and digital services.” The transaction is pending regulatory approval and customary closing conditions and is expected to close in the fourth quarter 2010.

Technicolor (Euronext Paris: TCH; NYSE: TCH)