Cineplex Entertainment

Cineplex Galaxy Income Fund
TSX : CGX.UN

Cineplex Galaxy Income Fund

April 12, 2006 10:23 ET

Cineplex Entertainment Increases Synergies Target to $30 Million Selects Coca-Cola as Exclusive Beverage Supplier and Expands Digital Pre-Show Network

TORONTO, ONTARIO--(CCNMatthews - April 12, 2006) - Cineplex Entertainment (TSX:CGX.UN) announced today that it expects annual recurring synergies resulting from the acquisition of Famous Players to now reach $30 million dollars. This is a $5 million increase versus the $25 million target that was previously announced. Cineplex Entertainment also announced the selection of Coca-Cola as the exclusive beverage partner to all 129 Cineplex Entertainment cinemas across Canada for the next five years and the continued expansion of the Digital Pre-Show Network.

Ellis Jacob, President and CEO, Cineplex Entertainment said: "We are committed to maximizing every opportunity to increase our annual synergies. The additional $5 million announced today is a direct result of management's continued focus in identifying all possible operating efficiencies and revenue enhancements from the combined business." The $30 million in annualized synergies are expected to be achieved on a run rate basis effective as of the end of the second quarter of 2006.

"Our new arrangement with Coca-Cola has set a new precedent for our business and has certainly exceeded our objectives and expectations. The team at Coca-Cola had a very creative proposal that provides us with opportunities to work together on our digital pre-show, on joint marketing campaigns and with our Cineplex Media business," said Ellis Jacob.

Also announced today was the continued expansion of the Digital Pre-Show Network into an additional 39 theatres with 457 screens bringing the total number of digitally equipped locations to 71 theatres and 816 screens. The network was originally launched in April 2005 in the Toronto Extended Market Area (EMA) only. Today's announcement expands the network regionally into the balance of Ontario in addition to the Montreal EMA, Calgary and the Vancouver EMA.

The Digital Pre-Show Network projects high definition multi-media presentations encompassing a combination of entertainment, advertising and promotional messages to our theatre guests prior to the beginning of each feature film presentation.

For advertisers, the network means reduced production costs, increased flexibility and creativity, improved image quality and much larger images versus the traditional slide program that was previously in place.

About Cineplex Entertainment LP:

Cineplex Entertainment LP owns leases or has a joint venture interest in 129 theatres with 1,269 screens and is the largest motion picture exhibitor in Canada. Headquartered in Toronto, Canada, the Partnership operates theatres with the following six top-tier brands: Cineplex Odeon, Galaxy and Famous Players including: Coliseum, Colossus and SilverCity. Proudly Canadian, the units of Cineplex Galaxy Income Fund, which owns approximately 50.6% of Cineplex Entertainment LP, are traded on the Toronto Stock Exchange under Cineplex Galaxy Income Fund (symbol CGX.UN). More information can be found at www.cineplex.com.

Contact Information