Movie chain Regal partners with RealD in 3-D

LOS ANGELES (Reuters) - Leading U.S. movie chain operator Regal Entertainment Group(RGC.N) on Tuesday said it reached a deal with cinema 3-D provider RealD 3D to upgrade 1,500 of its screens.

Terms of the deal were not disclosed.

The 1,500 screen deal is the largest exhibitor commitment to 3-D, the companies said, bringing RealD's 3-D screen count to more than 3,500.

Regal operates 6,763 screens in 551 locations.

The rollout will begin with the completion of the Digital Cinema Implementation Partners (DCIP) initiative, the companies said.

The DCIP, owned by Regal, Cinemark Holdings Inc (CNK.N) and AMC Entertainment Inc AC.N, is working toward a $1.1 billion financing deal with Hollywood studios to deploy cinema digital technology. Once outfitted with digital projectors, theaters can then add 3-D technology.

The DCIP first hoped to clinch the deal by the fourth quarter of 2007, but various issues have prolonged the talks.

(Reporting by Sue Zeidler, editing by Leslie Gevirtz)