Cineplex Inc.

Cineplex Inc.
Canadian Digital Cinema Partnership

Canadian Digital Cinema Partnership

June 21, 2011 12:54 ET

Canadian Digital Cinema Partnership Announces Completion of $115 Million Financing for Digital Cinema Conversion

Cineplex Entertainment and Empires Theatres Limited Will Convert 1600 Screens to Digital

TORONTO, ONTARIO--(Marketwire - June 21, 2011) -Cineplex Inc. (TSX:CGX) -

Canadian Digital Cinema Partnership ("CDCP"), a joint venture between Cineplex Entertainment Limited Partnership and Empire Theatres Limited, announced today that it has completed its financing transactions for the deployment of digital projection systems to approximately 1600 of the partners' movie theatre screens across Canada. This financial support will enable Canada's two largest motion picture theatre exhibitors to complete the roll out of digital projectors into their circuits over the next 18 months.

Digital projection provides consumers with an enhanced movie-going experience far superior to 35mm film projection. In addition to brighter and sharper images on screen, digital projection provides increased programming flexibility, high quality and consistent imagery on screen and the ability to add 3D technology.

Cineplex Entertainment and Empire Theatres Limited appointed Blackstone Advisory Partners L.P. ("Blackstone") as their financial and structuring advisor for CDCP. Blackstone assisted CDCP with the evaluation and development of their financing plan and The Bank of Nova Scotia acted as Lead Arranger for CDCP's financing. These financing transactions included commitments of $80 million in committed bank financing and $35 million in equity contributions from the member circuits.

Digital Cinema Implementation Partners, LLC ("DCIP") will provide administrative services and system support to CDCP in connection with its digital deployment in Canada. DCIP is a joint venture owned equally by three of the top US exhibition industry exhibitors and was formed to facilitate the roll-out of a digital cinema infrastructure in the United States. DCIP has itself deployed more than 8,000 digital projection systems to theatres in the United States and Canada during the past year.

CDCP was formed earlier this year to plan and implement the deployment of digital projection equipment in the two partners' theatres including the procurement of equipment, arranging financing and securing digital deployment agreements with studios and other content providers.

The digital projection systems deployed by CDCP will comply with the technical and security specifications developed by Digital Cinema Initiatives, LLC. CDCP has also executed long-term deployment agreements with Twentieth Century Fox, Sony Pictures Entertainment, Warner Brothers Entertainment, Walt Disney Studios Motion Pictures Canada, Paramount Pictures and Entertainment One.

About Cineplex:

Cineplex Inc. ("Cineplex") is the largest motion picture exhibitor in Canada and owns leases or has a joint-venture interest in 129 theatres with 1,344 screens serving approximately 70 million guests annually. Headquartered in Toronto, Canada, Cineplex operates theatres from British Columbia to Quebec and is the exclusive provider of UltraAVX™ and the largest exhibitor of digital 3D and IMAX projection technologies in the country. Proudly Canadian and with a workforce of approximately 10,000 employees, the company operates the following top tier brands: Cineplex Odeon, Galaxy, Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank Theatres. Cineplex shares trade on the Toronto Stock Exchange (TSX) under the symbol "CGX". For more information, visit

About Canadian Digital Cinema Partnership:

Canadian Digital Cinema Partnership ("CDCP") is a joint venture owned by Toronto, Ontario headquartered Cineplex Entertainment LP, and New Glasgow, Nova Scotia based Empire Theatres Limited. CDCP represents more than 1,600 screens operating across Canada from coast to coast. Formed in 2011, CDCP will plan and implement the deployment of digital cinema during the transition from film to digital technology.

About Empire Theatres Limited:

Empire Theatres Limited is a Canada-wide film exhibition company providing an exciting out-of-home entertainment experience including traditional film exhibition as well as other content using its digital and satellite capabilities.

Empire Theatres Limited is a 100% owned subsidiary of Empire Company Limited that owns and operates 51 theatres across Canada with 386 screens, including one IMAX theatre in Halifax, NS. The Empire Theatres Limited corporate headquarters are located in New Glasgow, NS, with regional offices in Halifax, NS; Toronto, ON; and Calgary, AB. With approximately 2,500 employees, Empire Theatres provides excellent employment opportunities for the youth of Canada in an exciting and energetic industry. For more information, visit

About Digital Cinema Implementation Partners

Digital Cinema Implementation Partners, LLC is a joint venture owned equally by U.S. exhibition industry leaders AMC Entertainment Inc., Cinemark Holdings, Inc. and Regal Entertainment Group, representing more than 15,000 screens in the United States and Canada. Formed in February 2007 to facilitate the roll-out of a digital cinema infrastructure in the United States and Canada, the company is headquartered in Mahwah, N.J. with offices in Minneapolis and Denver.

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