Sony Pictures History (cont'd)

The Screen Gems name was revitalized in 1999 as a new marketing label under SPE. Screen Gems focuses on films that fall between the wide-release movies traditionally developed and distributed by Columbia Pictures and those released by Sony Pictures Classics. Popular Screen Gems films include THE MOTHMAN PROPHECIES, RESIDENT EVIL, VACANCY, FIRST SUNDAY, SNATCH, UNDERWORLD, UNDERWORLD EVOLUTION and QUARANTINE.

Sony Corporation brought with it a strong belief that the future of the studio depended on a unique convergence between innovative consumer electronics products, improved connectivity and stimulating entertainment content. The next step in the evolution of the company resulted in the creation of Sony Pictures Digital (SPD) in 2000. The SPD group combined SPE’s digital production with its online content and game services to deliver the next generation of entertainment. Some novel products from that early collaboration included the leading multiplayer online game EverQuest™, SoapCity© and Screenblast®. Also folded into the SPD group: Sony Pictures Imageworks Inc., a state-of-the-art digital animation and visual effects company, creating computer-generated imaging (CGI) and animation for feature films; and Sony Pictures Animation Inc., responsible for the development and production of all CG features for SPE.

SPE enjoyed a blockbuster 2002 with the record-breaking SPIDER-MAN™, which crossed the $400 million threshold. The webbed wonder was the fifth film ever to surpass that level in domestic box office gross and only the third to do so in its initial release. In addition, the studio crossed the $1 billion mark in domestic box office gross in the summer of 2002, joining the billion dollar club for the second time and shattering its own record for reaching that box office level faster than any distributor in history. Contributing to this record was the release of SPIDER-MAN™, MEN IN BLACK II, STUART LITTLE 2, PANIC ROOM, BLACK HAWK DOWN and MR.DEEDS. The studio broke both the domestic and international box office records bringing in $1.57 and $2.87 billion respectively.

While ramping up their feature animation division in 2003, Imageworks released a short film, “THE CHUBB CHUBBS” just in time for Academy Award® consideration. Their celebrated first effort won Best Animated Short Film. Imageworks soon added another Oscar® to the mantel, this time for achievement in Visual Effects for its work on SPIDER-MAN 2™, which earned more than $800 million worldwide. Under new leadership from Chairman and CEO Michael Lynton and Chairman of the Motion Picture Group Amy Pascal, the studio ended 2004 in the #1 spot with a remarkable $1.308 billion in domestic box office receipts. In 2005 Sir Howard Stringer became Chairman, Group CEO and Representative Corporate Executive Officer of Sony Corporation.