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| 2005 Overview | dVision Expansion | Sundance 2006 | iVision Holiday Sale |

Year in Review - DPI In '05

With the end of 2005 in sight, I wanted to take a moment to simply thank our customers and industry friends for the tremendous support you bestowed on us through the year.

Looking back over the past 12 months, I am pleased to report that DP experienced the solid, organic growth that was our objective for the year. In North America, the expansion of our product line and the increasing participation of our manufacturer's representatives brought us increased market opportunities, which in turn led to appropriate increases in our distribution channels. In international markets, Digital Projection, Limited enjoyed very strong growth in key vertical markets, including European staging and e-cinema. Not surprisingly, the combination of our worldwide successes led DP to increased sales and profitability in 2005. We are indebted to you for helping us achieve this growth.

One untimely effect of our growth has been the backlog that emerged on some DP products - most specifically, the hugely successful Mercury series. Needless to say, our component suppliers and our Manchester factory are working overtime to assure supply meets demand in the very near term.

Although the DP brand is not a household name, on a worldwide basis, our brand is becoming even more identified with offering the absolute best projection solutions for the most discerning applications. With our 2005 product lineup ranging from $6500 - $130,000, like never before, DP truly offered precision displays for every venue, and for nearly every budget.

Looking ahead to 2006, we will continue to extend our product offerings, such that more markets and customers can enjoy the benefits of a DP solution that is uniquely suited for their projection challenge. Of course, for DP, product line expansion does not mean we will develop commodity products designed to address the masses. Rather, we will remain true to our “best in class” engineering philosophy, delivering visible imaging and application value in return for the investments made by our customers. We take those investments seriously… that is DP's heritage, and that is where our commitment remains.

Again, our thanks to you for a great 2005! We look forward to our continued partnership and growth through the New Year.

Warm regards for the happiest of holidays,

Mike Levi and the Digital Projection Team


New dVision Series Products to Launch in Q1 '06

We are pleased to announce important new additions to our popular family of dVision displays. Specifically, DP will add 3 products to this premier single-chip chassis in 2006.

The current dVision SX+ will soon be available with dual 300-watt lamps that increase brightness to 6500 lumens. This 300-watt based unit will be called the dVision30 SX+ and will be available in Q1 of 2006. This new and improved SX+ product offers a native resolution of 1400 X 1050 pixels and will be available with either a 4-segment color wheel for the 6500 lumen brightness, or a 3-segment color wheel for improved color saturation.

The workhorse dVision chassis will also be expanded to include an XGA version with dual 300-watt lamps producing 5500 lumens. The dVision HD will also offer the option of a 7-segment color wheel for improved color performance and low-level detail enhancement.

Without a doubt, the most exciting addition to our dVision series will be the highly anticipated dVision 1080P. Scheduled to ship in Q1 of 2006, this exciting product features the new .95” 1920 X 1080 resolution DMD from Texas Instruments. The dVision 1080P will produce an estimated light output of up to 2500 lumens, utilizing dual 7segment color wheels. As one of the first DLP-based 1080P displays to hit the market, the dVision 1080P is a breakthrough in display technology - offering true 1080P native resolution with all the benefits of DLP performance at price that will be less than $25K.

Watch for more news on these exciting products in the coming months. Once we officially add these models to our current dVision lineup, the series will include a total of 6 models, all representing the ultimate performance in single chip DLP displays.


DPI Official Provider to Sundance Film Festival For 8th Year

Digital Projection is pleased to be returning to the Sundance Film Festival for our eighth consecutive year as the “Official Provider of Digital Video Projectors."

Since 1999, video and HD content has been an ever-increasing component of the festival. Digital Projection's presence has grown as well. This year, Digital Projection will be responsible for a record fifteen venues. Our Sundance fleet includes our flagship LIGHTNING 35HD projectors as well as the HIGHlite Pro and MERCURY series.

Once a controversial addition to the festival, the digital display of movies is now embraced as an important tool for filmmakers. By displaying their work digitally, filmmakers avoid the high cost of film transfers. More independent filmmakers than ever present their work digitally, to the massive audiences at the prestigious festival.

The festival dates are January 19th through January 29th in Salt Lake City and Park City Utah.


iVision HD Holiday Sale Reminder

Don't forget about the special holiday purchase opportunity for the popular iVision HD-7. You can use the special pricing to boost your end of year margins, or to reward yourself, or a deserving employee, with a DP home cinema experience of your very own.

The details:
The current list price on the iVision HD-7 with standard lens (1.75-2.25:1) is $8,495. Standard first column dealer cost (1-4 units) is $5,947; end column (25+ units) is $5,097. From now through the end of 2006, DP will offer a total of 50 iVision HD-7 projectors to our home cinema and commercial AV dealers at the following “Special Thanks” pricing:

P.O. Quantity: Price:
2-4 unit: $4,400 (48% off of list)
5-7 units: $4,200 (50% off of list)
8+ units: $4,000 (53% off of list)


All-In Texas Hold 'Em Poker Tips

To be a truly great Texas Hold 'Em Poker player, you need to be able to read your opponents, ascertaining when they are bluffing and then they really have a solid hand. But learning some basic strategies and general rules will go a long way toward making sure you can at least hold your own in a friendly game.

Two Things to Always Remember

It may seem silly to be reminded of the following fundamental facts, but it's surprising how often players get swept up in the excitement of the game and forget the basics.

So, always remember these two things:
1. The two cards you hold are the only cards that set you apart from the other players and give you the chance to win.
2. All of the face-up cards are community cards, shared by you and every other player.

It's vital that you focus on what those cards could mean to someone else at least as much as you focus on what they mean to you. In particular, keep your eyes open for your opponents' straight and flush possibilities.

Evaluating Your Cards

Usually, the first decision you make in a hand of Texas Hold 'Em Poker happens with your only knowledge being what your two cards are.

When you look at your cards, be careful not to reveal anything with your reaction -- facial or otherwise. Taking a sharp breath, no matter how quietly you do it, can tell a wily opponent all he needs to know to have an advantage over you. Keyword: emotionless.

How do you know if your cards are good?

It depends in part on how many players are in the game, but a general rule is that you should seriously consider folding before the flop if you have two non-pair cards, both less than 10. A more conservative player might fold if just one of the cards is less than 10; a more aggressive player might stay in with, for example, an 8 and 9 of the same suit (because those cards give you decent possibilities for a straight or a flush).

If the big blind (a forced bet designed to ensure that every hand has a pot) is low enough, it may be worthwhile to pay in so that you can see the flop even if you don't have particularly strong cards in your hand. But don't abuse this exception to the rule -- it can get you into trouble more quickly than you imagine.

A lot of Texas Hold 'Em strategy is based on the cards in your hand. You must be willing to suffer through a series of poor hands (e.g. 5-8, 2-6, 4-9) without getting impatient. The good hands will come, eventually, and you'll be in better position to take advantage of them if you don't waste your chips trying to get something out of nothing.

From an article by Erik Arneson at boardgames.about.com


TECH TIPS

Lens Shift and the Projector Sweet Spot:

Average viewer position and screen type define the projector location

Lens shift, or image offset, can be defined as the ability to shift a projected image vertically or horizontally in order to accommodate specific installation challenges. Optimally, lens shift should be used to position the projector such that the average viewer is positioned in the illumination sweet spot.

Within Digital Projection's current product lineup, the only projectors that do not offer lens shift are the iVision SX+ and HD-7 products. These projectors are designed to mount in a specific position with respect to the top or bottom of the screen.

With the benefit of lens shift, our other displays can be located within a much wider area of the screen. This area is usually defined as a percentage of the image (or screen) height or width. With lens shift centered, dVision, Mercury, HIGHlite, LIGHTNING and Reference displays are designed to be installed on-axis with respect to the screen. The lens employed in the application defines the amount of total lens shift available, from that on-axis position.

Zoom lenses generally offer the most lens shift - up to 50% of the image height (vertical) and up to 25% of the image width (horizontal). Short throw fixed lenses generally offer more limited lens shift – approx 10% of the image height and little or no horizontal shift. Fixed short throw lenses are most often utilized for on–axis rear screen applications.

As an example, when using a typical zoom lens with a MERCURY projector on a screen that is 60” high, the installer would have as much as 50% vertical lens shift (offset), or 30 inches of up and down image movement from the screen center. This allows the projector to be installed anywhere from the top of the screen to the bottom of the screen. Given a 16 x 9 aspect ratio, the same 60” high screen is nearly 107” wide. The same zoom lens would offer 10% of that screen width in horizontal lens shift (horizontal offset), or nearly 11 inches of image shift left and right.

It is important to remember, if both horizontal and vertical lens shift are employed, the total available lens shift in either dimension will normally be less than the maximum specified for the lens.

Although lens shift provides great flexibility in projector placement, be aware that in any installation, the goal should be to install the projector to assure maximum transfer of illumination from the projector to the average viewer position. This optimizes luminance uniformity, peak brightness, contrast and also minimizes hot spotting. Projector placement is especially critical in rear-screen applications, as well as in front screen applications where high gain screens are utilized.

In conclusion, the average viewer position and the screen type are paramount in defining the optimum projector location. Lens shift (offset) simply provides the ability to position the projector in that sweet spot, without sacrificing geometry and focus uniformity.

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