Denver, CO, December 15, 2005 - National CineMedia (NCM), a joint venture of AMC Entertainment Inc., Cinemark USA, Inc. and Regal Entertainment Group (REG, NYSE: RGC), has reached an agreement with each of its founding partners to work on the development of a digital cinema business plan. The announcement was made today by Kurt Hall, chairman and chief executive officer of NCM. The plan will be open to all industry exhibitors, in addition to NCM's founding partners.
Commenting on the announcement, Mr. Hall said, "NCM's primary objective is to work with manufacturers to reduce the cost of digital cinema equipment through efficient volume purchasing for NCM's partners' 13,000 screens and other participating exhibitor screens. NCM will also seek to develop an efficient financing structure for the purchase of the digital cinema equipment that will be open to all capital sources and that will provide a transparent cost effective arrangement for exhibitors, distribution partners, capital providers and all other key constituents. Once the financing model and equipment volume pricing has been established, our founding partners and other exhibitors who participate will have ultimate responsibility for deployment of digital cinema systems."
Mr. Hall concluded, "NCM is uniquely qualified to assist with the industry transition to digital cinema. NCM has successfully designed, deployed and operated its national Digital Content Network (DCN) for several years and has significant experience distributing its advertising pre shows and various forms of live and pre recorded digital content, including sporting events, concerts and independent films. With the DCN growing to over 11,000 screens in 2006, it will provide an excellent platform that can be upgraded to the Digital Cinema Initiatives (DCI) specifications with the higher quality digital cinema equipment now available."
About National CineMedia, LLC
National CineMedia, LLC is a venture of AMC Entertainment Inc., Cinemark USA, Inc. and Regal Entertainment Group (NYSE: RGC), three of the world's leading theatrical exhibition companies. The company develops pre feature entertainment; cinema and lobby advertising products; comprehensive meeting and event services; and alternative forms of entertainment content for approximately 13,000 screens operated by its owner theatre circuits and other theatre affiliates. National CineMedia distributes its products and services across its Digital Content Network (DCN), the world's largest in-theatre digital distribution network. Once installation of its DCN technology is completed in Cinemark theatres, National CineMedia's network will comprise approximately 11,000 digital North American theatre screens in 150 markets (49 of the top 50), reaching 525 million movie patrons annually. For additional information, please go to www.ncm.com.
Lauren Leff, National CineMedia
Sun Dee Larson, AMC Entertainment Inc.
Terrell Falk, Cinemark USA
Dick Westerling, Regal Entertainment Group