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					        ATLANTA BIJOU CINEMAS, INC.

        Advanced Menuboard Solution Plan




                     Atlanta Bijou Cinemas, Inc.



Prepared for: Mr. Harry Black

              Director of Concessions

              Atlanta Bijou Cinemas, Inc.



Prepared by: Gene Fender
              Marketing Editor
              Learning Edge, LLC


Date:         June 27, 2006
June 27, 2006


Mr. Harry Black, Dir. of Concessions
ABC, Inc.
3121 Chamblee-Tucker Rd.
Doraville, GA 30340


Dear Mr. Black:

Why settle for yet another static menuboard in your new, high-tech theater program? Instead,
Learning Edge has a digital solution which simplifies operations and maximizes concessions
revenue.

Our digital menuboard uses an array of LCD panels to display the menu and promotions as
attention-getting animation and video. The content is dynamic and can easily be updated on site
or remotely. There is no need for theater managers to manually install costly point-of-purchase
graphics.

In the last two years our pilot theater locations have reported an average increase in concessions
sales of seventeen cents per head or about $350,000 annually per location. Most of the increase
came from soda and popcorn sales with virtually no impact on supply requirements.

Shortly after you have received and reviewed our proposal, Gene Fender, Marketing Editor, will
contact you to answer any questions you may have.


Sincerely,



President and CEO, Learning Edge, LLC
gf
                                                     TABLE OF CONTENTS



                                                                                                                                           PAGE
LIST OF ILLUSTRATIONS ................................................................................................. ii
EXECUTIVE SUMMARY .....................................................................................................1
INTRODUCTION....................................................................................................................2
          Go Digital.......................................................................................................................2
          Simplified Operations and Savings................................................................................2
          Higher Concessions Profits............................................................................................3
          Solution Overview .........................................................................................................3
DIGITAL MENUBOARD SYSTEM .....................................................................................4
          On-site Technology........................................................................................................4
          Flexible Software ...........................................................................................................5
SYSTEM LAUNCH.................................................................................................................6
          Menuboard Fabrication..................................................................................................6
          Installation......................................................................................................................6
          Location Surveys ...........................................................................................................6
          Digital Content Service..................................................................................................7
          Technical Support ..........................................................................................................7
SYSTEM PRICING.................................................................................................................8
          Pilot ................................................................................................................................8
          Service Renewal.............................................................................................................9
          Incentives .......................................................................................................................9
CONCLUSION ......................................................................................................................10
          Solution Summary .......................................................................................................10
          Availability ..................................................................................................................10


                                                            APPENDICES
A. About Learning Edge, LLC ................................................................................................11
B. Learning Edge, LLC Organization Chart............................................................................12
C. About Construx, Inc. ...........................................................................................................13
                                                                                                                                     ii


                                         LIST OF ILLUSTRATIONS


                                                                                                                           PAGE
FIGURES
    Concessions Cycle Comparison.......................................................................................2
    Digital Menuboard Hardware ..........................................................................................4
    Typical Digital Menuboard Layout .................................................................................5


TABLES
    Pilot Program Costs .........................................................................................................8
                                                                                                   1


                                    EXECUTIVE SUMMARY


    Learning Edge has created a strategic and maintainable plan for installing and supporting an
advanced menuboard solution for Atlanta Bijou Cinemas’ twenty-five new high-tech pilot
theaters. The Learning Edge digital menuboard system uses an array of LCD panels to display
the menu and promotions as attention-getting animation and video that will complement the
high-tech theme of your pilot theaters while simplifying operations, creating savings and
increasing concessions profits.
    Bringing the Learning Edge digital menuboard system online for each of Atlanta Bijou
Cinemas’ twenty-five new high-tech pilot theaters will cost a total of $604,750. This includes
design, fabrication, installation and support. New technology is expensive, but our system is
priced much less than the conventional technique of printing and distribution which can easily
exceed $1,500,000. Our rapid process also creates the opportunity to change promotions more
frequently and to target specific markets with custom promotions.
    Concessions profits are increased by the proven technique of using video and animation to
attract the attention of theater patrons. This not only earns more money for each theater, it
decreases the waste of concessions products such as popcorn that must be discarded daily when
left unsold.
    The design determined to be most suitable for each of the twenty-five pilot locations is a pair
of menuboards each containing three 42 inch LCD video panels. Learning Edge will contract our
business partner Construx, Inc., to build the brackets.
    The Learning Edge multimedia player software presents animation, still graphics and video
on the LCD video panels. This content is organized into a menuboard which displays menu items
along with promotions and combos. Animations or videos in different areas of the menuboard
are played individually in a regular pattern to draw interest to that particular area of the
menuboard.
    Learning Edge provides creative services for the initial operation of the digital menuboards
followed by an additional twelve months of creative support in conjunction with your current
vendor for graphic design.
                                                                                                  2


                                        INTRODUCTION


GO DIGITAL
    This response outlines a strategic plan to build, install and support an advanced menuboard
solution for Atlanta Bijou Cinemas’ twenty-five new high-tech pilot theaters. The Learning Edge
digital menuboard system uses an array of LCD panels to display the menu and promotions as
attention-getting animation and video that will complement the high-tech theme of your pilot
theaters while simplifying operations, offering considerable savings over conventional translight
menuboards and increasing concessions profits.

SIMPLIFIED OPERATIONS AND SAVINGS
    Ordinarily your graphics vendor must design new promotions that are then printed by another
vendor, distributed to your locations and put in place manually by employees who must be
trained for installation. The Learning Edge digital menuboard system reduces the process to two
steps: design and launch (Figure 1).




                   DESIGN              PRINT          DISTRIBUTE           INSTALL
                                                                            TRAIN




                   DESIGN                                                  LAUNCH

FIGURE 1
Promotions Cycle Comparison


    The content for a digital menuboard is dynamic and can easily be updated on site or
remotely. There is no need for theater managers to manually install costly point-of-purchase
graphics. Removing the need for printing also shortens the development time for promotions
which means that a greater number of promotions can be run more quickly than before.
    LCD panels are costly, but the initial investment in digital menuboards is less than the typical
budget required for twelve months of promotional campaigns. The savings are even greater with
continued renewal of the content because the only costs incurred are for design and hosting.
                                                                                                      3



HIGHER CONCESSIONS PROFITS
   Rising ticket prices makes it harder to interest patrons in spending more on concessions—an
area normally more profitable than ticket sales. For families the cost approaches the price of a
casual dining meal, so it takes a greater promotional effort to capture their attention before they
enter the screening rooms.
   Our digital menuboard system uses an array of LCD panels to display the menu and
promotions as attention-getting animation and video. The result is proven greater concessions
sales. After one year of using our digital menuboard system in their pilot locations, AMC
Theaters reported an average increase of seventeen cents per theater patron. The average annual
net profit gain for these locations is $1.3 million.
   Despite the increased sales, there is very little impact on concessions supplies of popcorn or
soda. These concessions are subject to high waste, and higher sales prevents product from being
discarded.


SOLUTION OVERVIEW
   This proposal defines every aspect of implementing a successful program and is divided into
three sections. The first section provides a description and specifications for the Learning Edge
digital menuboard system. The section that follows describes how a custom system will be built,
installed and supported with digital content. The third section details the cost of launching the
digital menuboard system in your 100 pilot theater locations and supporting them with digital
content.
                                                                                                    4


                              DIGITAL MENUBOARD SYSTEM


ON-SITE TECHNOLOGY
    The menuboards are based on a configuration of three LCD panels in a close, side by side
array in a steel wall-mount bracket (Figure 2). The most cost effective display for prolonged use
the we have found is the Toshiba Trexis 42 inch LCD Video Panel. It has a reliable lifespan of
four years before the illumination dims. This display also lacks the “burn-in” problem of plasma
displays where repeated display of still images leaves permanent traces on the display.




FIGURE 2
Digital Menuboard Hardware


    The menuboard digital content is driven by a typical multimedia computer with fast graphics
capabilities. We use the economical Toshiba Trexis Tower PC with the following
specifications:


              Toshiba Trexis Tower PC
              Processor:             Intel® Pentium® M Processor 1.73 GHz
              Memory:                512 MB SDRAM
              Video card:            64MB ATI Mobility RADEON x300
              Hard drive:            60 GB
              CD/DVD drive:          CD / DVD-ROM Combo
              Connectivity:          56 kb Dialup Modem and Infrared
                                                                                                    5


FLEXIBLE SOFTWARE
    The Learning Edge multimedia player software presents animation, still graphics and video
on an array of LCD video panels. This content is organized into a menuboard which displays
menu items along with promotions and combos (Figure 3). Animations or videos in different
areas of the menuboard are played individually in a regular pattern to draw interest to that
particular area of the menuboard.




FIGURE 3
Typical Digital Menuboard Layout


    Content and pricing data is downloaded from the Learning Edge server or your own host via
a standard dial-up connection, so there are no CDs or DVDs to distribute. The computer for each
theater location accesses the server every half hour to check for updates. Changes to content can
be created and launched on the latest interval as soon as new content has completed dowloading.
During the theater’s closed hours the computer can continue to check for updates periodically,
but the LCD video panels shut down to conserve power and extend their operational lifespan.
    Content can be varied for each location which makes it easy to customize how the menu and
promotions are displayed in the following ways:


    •    Vary regional pricing
    •    Target promotions to individual markets
    •    Run non-English versions of the menu in select markets
    •    Run different promotions at different times of the day (e.g., more promotions for children
         during the matinee)
    •    Remove or change content when the stock of promotional items has run out
    •    Display local prize winners at individual locations (e.g., winning ticket stub numbers)
                                                                                                    6


SYSTEM LAUNCH


MENUBOARD FABRICATION
   Construction of the steel mounting hardware for all of the twenty-five pilot locations will be
done by our long-standing partner Construx, Inc., who have served all our metal fabrication
needs since 1999. These will be delivered to Learning Edge for the addition of the LCD video
panels, cabling and testing.


INSTALLATION
   Eric Walston, Learning Edge Technical Services, will oversee the plan for installing
menuboards. Your timetable suggests that all of the pilot locations will be complete in the next
eighteen months. Typical installation requires one full day with an additional day for testing and
troubleshooting. Installation can be done at each location as they are completed, but at least three
months will be required to install digital menuboards at all twenty-five locations.
   In order for the installation to take place, the following items must be available at each
location:


   •   Dedicated space in concessions counter to store each computer
   •   One electrical outlet inside the concessions counter for each computer
   •   One electrical outlet on wall behind each digital menuboard mounting site
   •   Regular phone service
   •   Phone outlet inside concessions counter for each computer


LOCATION SURVEYS
   A standard design based on architectural plans that were provided should be compatible with
each of the twenty-five pilot locations, but a survey will be conducted to determine any
adjustments to the hardware that must be made for the best fit. Prior to fabrication Eric Walston,
Learning Edge Technical Services, will conduct these surveys and communicate his findings to
Construx.
                                                                                                  7


DIGITAL CONTENT SERVICE
   Learning Edge provides creative services for the initial operation of the digital menuboards
followed by an additional twelve months of creative support in conjunction with your current
vendor for graphic design. Services includes are:


   •   Custom menuboard layout
   •   Dial-up service
   •   Digital content hosting
   •   Up to 24 promos for each month
   •   Up to 30 graphic additions each month
   •   Unlimited product price alterations
   •   Content scheduling and launching


   Learning Edge will also provide training to one user within your organization. The user will
be learn how to update prices, change promotions and graphics and schedule day-parts for
running different promotions at different times throughout an individual location’s hours of
operation. This will enable you to make changes to the digital menuboards without relying solely
on Learning Edge creative services.


TECHNICAL SUPPORT
   Learning Edge will troubleshoot any problems related to the operation of the
LCD video panels, on-location computers, our hosting server, the multimedia player
and digital content or mounting hardware. Any hardware issues will be addressed by Eric
Walston, Learning Edge Technical Services. Problems with the player or content will be handled
by Josh Garrigus, Learning Edge Creative Services.
   Learning Edge will not perform warranty operations on the Toshiba LCD video
panels or computers. Coverage of these items should be referred to Toshiba technical
support. Should any problems occur with either, we will immediately replace the units with
temporary replacements until Toshiba technical support resolves any hardware problems.
                                                                                                    8


                                            SYSTEM PRICING
PILOT
    Table 1 itemizes the costs associated with bringing the Learning Edge digital menuboard
system online for each of Atlanta Bijou Cinemas’ twenty-five new high-tech pilot theaters.

TABLE 1
Pilot Program Costs
                                         ITEM                                         PRICE
 (150) Toshiba Trexis LCD Video Panels                                                    $420,000
 6 panels per location
 (50) Toshiba Trexis Tower PCs                                                              $42,500
 2 computers per location
 (50) Cable bundles                                                                           $3,750
 (50) Wall-mount brackets                                                                   $15,000
 2 brackets per location
 TOTAL HARDWARE                                                                           $481,250
 (25) Site surveys                                                                          $12,500
 includes travel expense
 (25) Installation/testing                                                                  $75,000
 includes shipping expenses, crew accomodations
 TOTAL INSTALLATION                                                                         $87,500
 Content creation                                                                           $36,000
 Hosting                                                                                         Free
 TOTAL SERVICES                                                                             $36,000

 TOTAL                                                                                   $604,750


Hardware Pricing
    Hardware pricing reflects the use of two digital menuboard units each consisting of three
LCD video panels, a multimedia computer, a cable bundle and a wall-mount bracket. Each
theater location will require two units to cover the full number of concessions stations (four
stations total, each digital menuboard serving two stations.)
                                                                                                   9


Installation Cost
   The total cost of installation takes into account the cost of surveying each location, the travel
expenses associated with traveling throughout the Southeast for the surveys, the cost of shipping
the hardware to each location and accomodating the crew. The crew are required on-site for two
days for installation and testing and require accomodation for one night only.


Content Creation and Hosting
   The cost of content creation includes creative services for the design of the digital menuboard
layout, customization of the multimedia player software and continued creation of promotions
and other graphics content for twelve months after each new theater begins operating. Hosting is
a courtesy service provided for free so long as you continue utilizing Learning Edge Creative
Services.


SERVICE RENEWAL
   After twelve months of hosting and creative services from Learning Edge, you might find
that continuing to use our services is more cost effective than using your previous graphics
vendor or seeking other hosting services. Learning Edge encourages you to consider renewing
your subscription to our creative services for the most comprehensive support available for the
digital menuboard system.


INCENTIVES
   The addition of new technology is costly, but our digital menuboard system provides
considerable savings over the conventional practice of continually printing and installing
translight menuboards. The price of $604,750 for our pilot program is well below the typical
price associated with conventional promotional prices. For twenty-five theaters the price could
easily top $1,500,000.
   LCD video panels have a functional lifespan of about four years, so for three years after the
first year of installation, the only cost of promotions is design and hosting. In the meantime LCD
video panel costs are expected to decrease while their longevity improves.
                                                                                                10


                                           CONCLUSION


Solution Summary
    The Learning Edge digital menuboard system is the future of promoting concessions. The
dazzling display of dynamic content will complement the high-tech theme of your newest
theaters while simplifying operations and increasing concessions profits.
    New technology is expensive, but our system creates savings immediately by cutting out the
cost of printing and distribution associated with conventional translight-based systems. Our rapid
process also creates the opportunity to change promotions more frequently and to target specific
markets with custom promotions.
    Concessions profits are increased by the proven technique of using video and animation to
attract the attention of theater patrons. This not only earns more money for each theater, it
decreases the waste of concessions products such as popcorn that must be discarded daily when
left unsold.


Availability
    Learning Edge and our partner Construx are ready and more than capable of implementing a
solution for you now. New menuboard units are easily configured and can be ready in a few
weeks. A solution as rapid as ours will make it easier to meet your own deadline in the
construction of Atlanta Bijou Cinemas’ twenty-five new high-tech pilot theaters.
    Gene Fender, Marketing Editor, is ready to answer any questions you may have and will
contact you soon to find out when you are ready to choose our unique solution.
                                                                                                   11


APPENDIX A


About Learning Edge, LLC


    Learning Edge, LLC is based out of Marietta, Georgia and is a publicly held regional
technology consulting company which has approximately 300 clients. As of March 31, 2006,
Learning Edge, LLC is among the largest of ten other regional technology consulting companies.
Learning Edge, LLC sells its consulting services in a variety of ways, including its own and third
party retail outlets.
    Learning Edge, LLC has grown rapidly over the last several years. Its geographical footprint
covers portions of three states in the southeast region of the U.S. Recently growth has slowed,
and the impact of certain operational issues has become more prominent. This business situation
has caused Learning Edge, LLC to review ways to increase new client revenues, improve
retention and renewal of current subscribers, collect the revenues that are booked and provide a
better overall service to its client base while reducing its overall operating costs associated with
customer relations.
                                                                                                         12


                                                 APPENDIX B


                                 Learning Edge, LLC Organization Chart



                                                 President/CEO
                                                 Lloyd Shapiro




         VP Accounting                           VP Marketing                     VP Technology
           John Galt                             Tracy Altman                     Howard Roberts




                                                               Public
 Collections            Account Rep.        Editor            Relations
June Whitley             Hai Nguyen      Gene Fender       Phoebe Bowman




                          Creative                                          Technical
                          Services                                           Services
                        Josh Garrigus                                      Eric Walston




                Graphic            Programmer                              Field Rep.
                                                              R&D                          Field Rep.
                Designer          Gary Simmons                             George Lee     Scott Howell
                                                           Gail Jenkins
               Sue Wilson
                                                                                                   13


                                          APPENDIX C


About Construx, Inc.


   Construx, Inc., has been the fabrication partner to Learning Edge since 1999, and continues
to develop new, custom hardware for retail and public display clients.
   Construx started in 1972 as a distributor of tubing and pipe. Over the years services and
facilities expanded to include fabrication including tube bending and welding. Today Construx
services include state of the art laser cutting, robotic welding, sheet forming, bar coding, and
computer-aided design.
   Our sales and engineering departments are continually updating their skills and technical
expertise. We constantly look for better manufacturing methods to give you the highest quality
product at the lowest total cost.

				
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