                                                                    EXHIBIT 99.1

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ACCESS  INTEGRATED  TECHNOLOGIES,  INC.
55 MADISON AVENUE
MORRISTOWN, NJ  07960
(973) 290-0080

FOR IMMEDIATE RELEASE

 ACCESS INTEGRATED TECHNOLOGIES DEBENTURE HOLDERS AGREE TO CONVERT OUTSTANDING
                           NOTES AND RELATED WARRANTS

 - COMPANY ELIMINATES $7.6 MILLION IN DEBT, RECEIVES $2.48 MILLION FROM WARRANT
       CONVERSION, AGREES TO ISSUE HOLDERS NEW COMMON STOCK AND WARRANTS -

MORRISTOWN,  N.J.  - AUGUST  31,  2005 - ACCESS  INTEGRATED  TECHNOLOGIES,  INC.
("ACCESSIT")  (AMEX:  AIX) today  announced  it has reached  agreement  with the
holders  of its  $7.6  million,  4-year  Convertible  Debentures  for  the  full
conversion  of all  outstanding  debentures  and exercise of all related  common
stock warrants.  The $7.6 million,  4-year Convertible Debentures were issued in
February 2005 in connection  with the  company's  acquisition  of the assets and
operations  of the  Pavilion  Theater  in  Brooklyn,  New York  and for  working
capital.

Under the agreement,  the debentures,  with a conversion price of $4.07, will be
converted into 1,867,322 shares of Class A Common Stock. The associated  560,197
common stock warrants will be exercised at $4.44, providing the company with net
proceeds of approximately  $2.48 million.  In consideration  for this conversion
and  exercise,  the  Company  has  agreed  to issue to the  debentureholders  an
aggregate of 71,359  shares of newly issued Class A Common Stock and 760,196 new
common stock  warrants.  The new common stock warrants have an exercise price of
$11.39 and are exercisable immediately.

"We are pleased to reach this important agreement with our note-holders, a clear
indication  of  their  support  and  recognition  of  the  company's   long-term
potential,"  said  Bud  Mayo,  chief  executive   officer  of  ACCESSIT.   "This
transaction  simplifies our capital structure and greatly improves our financial
foundation  through the  elimination of $7.6 million in debt while providing the
company with additional capital to fund continued product development."

The  offering of the new shares of Class A Common Stock and the new Common Stock
warrants  (including the shares of Common Stock  underlying the new warrants) to
the  debentureholders  was made in a  transaction  exempt from the  registration
requirements of the Securities Act of 1933, as amended (the  "Securities  Act").
The new shares of Common Stock,  the new Common Stock warrants and the shares to
be  issued  on any  exercise  of the new  Common  Stock  warrants  have not been
registered  under the Securities Act, or any state  securities laws, and may not
be offered or sold in the United  States  absent  registration  or an applicable
exemption  from  the  registration   requirements  of  the  Securities  Act  and
applicable   state   securities   laws.   The   Company   has  agreed  with  the
debentureholders that it will file a registration  statement covering resales of
the new  shares  and the  shares  underlying  the new  warrants.  Resales by the
debentureholders  of the  shares  of Class A  Common  Stock  to be  issued  upon
conversion of the Debentures  and exercise of the warrants have been  registered
under the Securities Act.

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ACCESS  INTEGRATED  TECHNOLOGIES,  INC.  (ACCESSIT)  is an  industry  leader  in
offering a fully managed storage and electronic  delivery service for owners and
distributors of digital content to movie theaters and other venues. Supported by
its robust  platform of fail-safe  Internet  data  centers,  ACCESSIT is able to
leverage the  market-leading  role of its Theatrical  Distribution  System (TDS)
with its  innovative  digital  delivery  capabilities  and  in-theatre  software
systems to provide  the  highest  level of  technology  available  to enable the
emerging  Digital  Cinema  industry to  transition  from film  without  changing
workflows. For more information on ACCESSIT, visit www.accessitx.com.



SAFE HARBOR STATEMENT
Investors and readers are cautioned  that certain  statements  contained in this
document,  as well as some  statements in periodic  press releases and some oral
statements of ACCESSIT officials during presentations about ACCESSIT, along with
ACCESSIT 's filings  with the  Securities  and  Exchange  Commission,  including
ACCESSIT 's registration statements, quarterly reports on Form 10-QSB and annual
report on Form 10-KSB,  are  "forward-looking"  statements within the meaning of
the   Private   Securities   Litigation   Reform   Act  of  1995  (the   "Act").
Forward-looking  statements  include  statements  that are predictive in nature,
which depend upon or refer to future events or  conditions,  which include words
such  as  "expects",   "anticipates",   "intends",  "plans",  "could",  "might",
"believes",  "seeks",  "estimates"  or similar  expressions.  In  addition,  any
statements concerning future financial  performance  (including future revenues,
earnings  or growth  rates),  ongoing  business  strategies  or  prospects,  and
possible future  actions,  which may be provided by ACCESSIT's  management,  are
also  forward-looking   statements  as  defined  by  the  Act.   Forward-looking
statements are based on current expectations and projections about future events
and are subject to various risks,  uncertainties and assumptions about ACCESSIT,
its technology, economic and market factors and the industries in which ACCESSIT
does business, among other things. These statements are not guarantees of future
performance  and  ACCESSIT  undertakes  no specific  obligation  or intention to
update these statements after the date of this release.

                                      # # #

Contact:

Suzanne Tregenza Moore                    Michael Glickman
ACCESSIT                                  The Dilenschneider Group
55 Madison Avenue                         212.922.0900
Suite 300
Morristown, NJ  07960
973.290.0080
www.accessitx.com


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