"Financially speaking, it's difficult to believe this is a very attractive market to
TI. Why are you investing in it?

There are two good reasons for investing in it:

The first is that it is a market where we believe we can achieve substantial penetration -
perhaps even leadership. As such, it is a potentially profitable market for us.

However, the more important reason for investing in it is it is a highly visible and
influential market. If we can succeed in convincing people who are renowned as being
the most demanding of image quality - people whose opinions about image quality are
respected throughout the world - we believe that this will reinforce our efforts in all the
markets where DLP™ technology competes. Our mission with DLP™ technology is to
make it synonymous with "the best image quality you can buy." And if DLP Cinema™
technology is widely used in cinemas, we believe we will have conclusively proven that
to be the case."

"How does what you're doing in digital cinema relate to what you're doing with
the rest of the DLP™ business?

It's highly complementary. We believe the key to success for DLP™ technology is that it
should represent to any prospective buyer the promise of "the best image quality you
can buy." This is important in our business projector sales, where the visual quality of a
presentation is a key concern. It is important to our sales of boardroom projectors,
where the requirement is to have a facility that is highly prestigious. It is important in
our video wall sales where the need is to create clear, attractive displays. It is important
in our sales of high brightness/large venue projectors where success is determined in
many locations by the compelling, captivating quality of the images. And in the
digital/HDTV television world of the future, the consumer will certainly demand the best
possible image quality.

For many people, the image they see projected in a cinema represents the best image
they have ever seen. And if - or when - DLP Cinema™ technology becomes the
technology of choice in movie theatres around the world, we believe we will establish
convincingly that DLP™ technology does indeed enable the development of projectors
which feature "the best image quality you can buy." This will reinforce our key message
in all the markets in which we participate."

------------------
John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Eastman Kodak Company
Research Labs, Building 69, Room 7419
Rochester, New York, 14650-1922 USA
Tel: 716-477-5325 Cell: 716-781-4036 Fax: 716-722-7243
E-Mail: john.pytlak@kodak.com
Web site: http://www.kodak.com/go/motion

quote:

---

For many people, the image they see projected in a cinema represents the best image they have ever seen. And if - or when - DLP Cinema™ technology becomes the technology of choice in movie theatres around the world, we believe we will establish convincingly that DLP™ technology does indeed enable the development of projectors
which feature "the best image quality you can buy." This will reinforce our key message in all the markets in which we participate."

---

So the corporate goal is to place theatrical projectors to degrade the consumers' reference image (the one they see in theaters) so that they can sell home units that are equivalent in quality?

That's what I read. They *know* the resolution is lower than film.

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