Cinram Signs Replication and Distribution Agreement with Universal Pictures International BV

TORONTO, June 10 /CNW/ - Cinram International Income Fund (the "Fund") (TSX: CRW-UN.TO) today announced that it has signed a long-term agreement with Universal Pictures International BV ("Universal") for manufacturing and distribution of DVDs throughout the majority of Western Europe.

"We are delighted that Universal has selected Cinram for the majority of their European business," said Cinram chief executive officer Dave Rubenstein. "This is a great opportunity for us to leverage our existing European footprint to grow our core business and effect consolidation in the industry."

Under the terms of the agreement Cinram will be increasing its manufacturing and distribution capacity to provide the additional capacity necessary to service Universal and to continue to provide best-in-class service to Cinram's other blue-chip customers throughout Europe.

"Cinram's proven manufacturing and distribution capabilities along with their recognized customer-centric approach made them the best choice to handle our business in Europe," said Eddie Cunningham, President Universal Pictures International Entertainment.

Financial terms of the agreement were not disclosed.

About Cinram

Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is the world's largest provider 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 and Europe through its wireless subsidiaries. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit our website at www.cinram.com.

About UPIE

Universal Pictures International Entertainment is part of NBC Universal - one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and world-renowned theme parks. NBC Universal is 80%-owned by General Electric, with 20% controlled by Vivendi.

Certain statements included in this release contain words such as "could", "expects", "expectations", "may", "anticipates", "believes", "intends", "estimates" and "plans" (and similar expressions) and constitute "forward-looking statements" within the meaning of applicable securities law. These statements are based on Cinram's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Cinram operates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which are difficult to predict and may cause the actual results, performance or achievements of the Fund, outcomes, 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: general economic and business conditions, which will, among other things, impact the demand for the Fund's products and services; multimedia duplication/replication industry conditions and capacity; the ability of the Fund to implement its business strategy, including having the cash resources necessary to do so; a shortage of product due to labour disruptions, the Fund's ability to retain major customers; the Fund's ability to invest successfully in new technologies and other factors which are described in the Fund's filings with Canadian securities commissions. Unless otherwise required by applicable securities laws, Cinram disclaims any intention or obligation to update or revise any forward-looking statements.

Contacts

Lyne B. Fisher
Tel: (416) 321-7930
lynefisher@cinram.com

Denise Bassett
Tel: +44 207 079 6071
denise.bassett@nbcuni.com