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Ascent Sells Divisions to Deluxe

Ascent Media Corporation announced an agreement to sell Ascent Media Group’s creative and media services divisions to Deluxe Entertainment Services Group Inc.

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Unedited press release follows:

Ascent Media to Sell AMG’s Creative Services and Media Services Businesses to Deluxe

ENGLEWOOD, Colo.–Ascent Media Corporation (“Ascent Media” or the “Company”) (Nasdaq: ASCMA) today announced the execution of a definitive agreement to sell the Creative Services and Media Services businesses of Ascent Media Group (“AMG”) to Deluxe Entertainment Services Group Inc. (“Deluxe”) for aggregate cash consideration to Ascent Media of approximately $68 million (after the assumption of certain indebtedness). The purchase price has been allocated as follows: 79% to the U.S. businesses and 21% to the U.K. businesses. Deluxe is a leading provider of a broad range of entertainment industry services and technologies to major Hollywood Studios and an international client base.

AMG’s Creative Services business unit provides high-end post-production services for feature film, advertising and entertainment television clients. AMG’s Media Services business provides major Hollywood studios, content owners and distributors with the suite of services necessary to store, manage and distribute content.

Ascent Media’s Chief Executive Officer, William Fitzgerald said, “AMG’s Creative Services group has provided pioneering post-production solutions for some of the most well known brands, directors and studios. In Media Services, AMG has been an innovator in developing solutions to help customers manage and distribute content. Deluxe is a leader in both of these segments, and we believe that the transaction should accelerate growth and better serve the combined company’s customers worldwide.”

Ascent Media will continue to own AMG’s content distribution and systems integration businesses. However, the Company is pursuing strategic alternatives for both business units. In addition, the Company is committed to pursuing investments in or the acquisition of businesses that provide enhanced shareholder return opportunities.

The Deluxe transaction is subject to customary closing conditions and is expected to close by the end of 2010.

Moelis & Co. served as the Company’s financial advisor and Baker Botts served as legal advisor in connection with the transaction.

About Ascent Media Corporation and Ascent Media Group
Ascent Media Corporation is a holding company and owns 100 percent of its operating subsidiary, AMG, which is primarily engaged in the business of providing content and creative services to the media and entertainment industries in the United States, the United Kingdom and Singapore. AMG provides solutions for the creation, management and distribution of content to motion picture studios, independent producers, broadcast networks, programming networks, advertising agencies and other companies that produce, own and/or distribute entertainment, news, sports, corporate, educational, industrial and advertising content.

About Deluxe
Deluxe Entertainment Services Group Inc., a wholly-owned subsidiary of MacAndrews & Forbes Holdings Inc., is the leading provider of a broad range of entertainment industry services and technologies to major Hollywood Studios and an international client base. Services include motion picture film processing, printing and distribution; EFILM® digital intermediates; post production and subtitling services; titles design and digital VFX; DVD compression, encoding and authoring; digital cinema services, digital asset management, digital distribution; marketing fulfilment services and intellectual property security systems. Deluxe operates facilities around the world. For more information please visit