CINRAM INTERNATIONAL AND GAIAM INC. RENEW PARTNERSHIP

Global Supply Chain Leader Strengthens and Extends Independent Studio Assets

TORONTO, June 21, 2011 /PRNewswire/ - Cinram International Income Fund ("Cinram" or the "Fund") (TSX: CRW.UN) announced today it has renewed its North American manufacturing and distribution agreement with Gaiam Inc., a leading producer and marketer of lifestyle media.

Gaiam has benefitted from Cinram's array of services since 2008. Under the new agreement, Cinram will continue to provide standard DVD and Blu-ray replication, finished goods assembly, retail compliant distribution and transportation services to Gaiam's mass merchant and specialty retailers.

"We're pleased to continue our partnership with Gaiam.  For more than three years, they've leveraged a majority of our services, from manufacturing, to business intelligence and distribution solutions," said Steve Brown, Chief Executive Officer, Cinram International Inc. "We've also begun to introduce them to our Digital Media team and capabilities, which when combined with our traditional services will allow our customers a succinct single point of contact in the evolving supply chain."

"As an independent studio, we're always looking for the most effective and efficient supply chain partners that can help Gaiam achieve the highest performance standards.  Cinram has continually proven to be the model supply chain solution, providing reliable service with rapid scalability and consistent accuracy in getting product from point A to point B," said Bill Sondheim, President of Gaiam Inc.  "Gaiam operates in several diverse retail channels requiring a wide range of service needs and Cinram has demonstrated a keen understanding and unsurpassed commitment to our various business segments.  We look forward to our continued relationship."

In addition to manufacturing and distribution operations, Gaiam utilizes Cinram's business intelligence tool, Vision™, to help make demand planning and inventory management simpler, insightful and more accurate.  Through the Vision™ software, customers have access to a multitude of tools including category management at the store and warehouse, product mix analysis, reporting and recommendations, convenient inquiry, data mining and processing information from any location.

Gaiam, Inc. dominates the health and wellness category and releases non-theatrical programming focused on family entertainment and conscious media. The company has a wide distribution network, consisting of 67,000 retail doors, over 12,500 stores within stores, a digital distribution platform and more than 10 million direct customers.  In addition Gaiam has exclusive licensing agreement with Discovery Communications and other licensing partners.

About Cinram

Cinram International Inc., an indirect, wholly-owned subsidiary of the Fund, is one of the world's largest providers of pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. Cinram also provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiaries. The Cinram group of companies now also incorporates 1K Studios, a digital media firm based in Los Angeles specializing in building enhanced consumer experiences for movies, TV shows, music, books and games. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. For more information, visit www.cinram.com.

Certain statements included in this release constitute "forward-looking statements" within the meaning of applicable securities laws.  Such forward-looking statements include statements concerning the possible effects of the transactions described herein, and the likelihood of their successful completion. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, or results of the multimedia duplication/ replication industry, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: the Fund's ability to retain major customers; general economic and business conditions, which will, among other things, impact the demand for the Fund's products and services; multimedia replication industry conditions and capacity; the ability of the Fund to implement its business strategy; the Fund's ability to invest successfully in new technologies and other factors which are described in the Fund's filings with the securities commissions.  These risks may affect the achievement of the expected results of the transactions described herein.  There can be no assurance that the said transactions will be successfully completed or that, if completed, the expected consequences will result in whole or in part, and the deviations from such expectations may be material.

SOURCE Cinram International Income Fund

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