Cineplex Galaxy Income Fund

Cineplex Galaxy Income Fund

February 25, 2005 11:55 ET

Cineplex Galaxy Announces The Launch Of A New Digital Pre-Show Cinema Network For Toronto And Southern Ontario


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CINEPLEX GALAXY INCOME FUND

TSX SYMBOL: CGX.UN

FEBRUARY 25, 2005 - 11:55 ET

Cineplex Galaxy Announces The Launch Of A New Digital
Pre-Show Cinema Network For Toronto And Southern
Ontario

TORONTO, ONTARIO--(CCNMatthews - Feb. 25, 2005) - Cineplex Galaxy
(TSX:CGX.UN) is extremely pleased to announce the launch of a new
digital pre-show cinema network premiering April 1, 2005. Canada's first
Digital Pre-Show Cinema Network will enable us to project high-quality
multimedia presentations encompassing a combination of entertainment,
advertising and promotional messages to our theatre guests prior to the
beginning of each feature film presentation. The same technology will
also be used to expand the network of digital projectors now in place
from 23 to 228 thus enabling us to expand our pay-per-view events such
as WWE, sporting events and concerts, or offer corporations the ability
to rent the theatres for product launches, educational programs,
seminars and expanded meeting rental capabilities. A total of 215
screens in 21 theatres located in the Toronto EMA will feature this new
system.

"This is great news for our movie-goers because we are enhancing the
level of entertainment we offer to our guests," said Pat Marshall,
Vice-President Communications and Investor Relations for Cineplex
Galaxy, "and we will provide our advertising clients with greater
flexibility, efficiency and creativity in the way they deliver their
marketing messages," Marshall said. "This new pre-show is very exciting
and will enable us to offer all kinds of behind-the-scenes stories such
as the making of your favourite movie, movie star interviews, music
videos, special movie features, movie trivia and much more. We call it
Reel Entertainment and the plan currently is for the pre-show to play
for approximately 20 minutes prior to the lights going out for the
feature film presentation," she said.

We have partnered with two of the best brands in the business -- Kodak
Digital Cinema and Christie Digital to develop a fully automated system
with exceptional quality. The Kodak Digital System architecture is very
sophisticated and is designed to provide the best quality presentation
possible with the greatest flexibility and reliability. Content will be
sent electronically to each theatre and is then stored on servers for
playback in auditorium. As part of the agreement, Kodak is providing
Cineplex Galaxy with all service and support necessary to schedule,
prepare and deliver pre-show content to our theatres, in addition to
remotely monitoring the systems.

"We are thrilled to be working with Cineplex Galaxy," said Drena Rogers,
Director of Strategic Accounts for Kodak Digital Cinema, "because
audiences benefit when great companies, great brands, work together. We
have a lot of respect for the Cineplex Galaxy team and for the attention
they pay to continuing to improve their customers' movie-going
experience. We share their vision of the future of cinema entertainment
and are pleased they selected Kodak to help them deliver that."

The projector technology used in the system is from Christie Digital
Systems, Inc. of Kitchener, Ontario. A total of 215 projectors have been
purchased for Phase One and will include a combination of Christie LW25
and Christie LW40 LCD projectors. Christie's LCD projectors are known
for their unsurpassed image clarity and high-quality resolution.
Christie projectors can project images from a multitude of sources
including: digital satellites, computer sources and other commonly used
formats. With native WXGA (1366x768) resolution, the 3-chip LCD panels
found in the Christie LW25 and Christie LW40 allow for images to fill
the entire screen maximizing the audience's viewing experience.

"We have worked with Cineplex Galaxy for several years now and find them
to be true visionaries in this industry. They continually seek new ways
to enhance the movie-going experience they offer their guests and
understand the impact technology has in this business" said Mr. Gerry
Remers, President and COO at Christie.

For marketers, the network means reduced production costs, increased
flexibility and creativity, improved image quality and much larger
images versus the traditional slide program previously in place. "The
network will also offer the ability to target consumers on a regional
basis in addition to the ability to target them against a specific film
genre" said Marshall. Phase Two could see the network expand by 400
additional screens across the country by the end of the year. "I think
we have created a program that will be enjoyed by moviegoers and
advertisers alike. Now we can offer an entertaining pre-show for
moviegoers that provides them with the latest news on what is happening
in the movie business," she said "and advertisers now have available to
them an exciting new medium that is far more dynamic and flexible than
ever before. I would imagine they would want to create ads specifically
made for the giant screen that will be highly interactive and fun given
the increased full motion and sound capabilities. If everyone responds
to the network as we believe they will, we will move quickly into Phase
Two expansion" she said.

About Cineplex Galaxy

Cineplex Galaxy LP is a leading exhibitor of motion pictures in the
entertainment industry. Headquartered in Toronto, Canada, Cineplex
Galaxy LP currently operates 86 theatres with a total of 775 screens in
6 provinces across Canada. Cineplex Odeon Cinemas, Galaxy Cinemas and
the associated brands are owned and operated by Cineplex Galaxy LP.
There are 64 Cineplex Odeon Cinemas located in the major urban centres
and 22 Galaxy Cinemas featured in mid-size markets. Proudly Canadian,
Cineplex Galaxy LP is a public company traded on the Toronto Stock
Exchange under Cineplex Galaxy Income Fund (symbol CGX.UN). More
information is available at www.cineplexgalaxy.com

About Eastman Kodak Company

Kodak is the leader in helping people take, share, print and view images
- for memories, for information, for entertainment. With sales of $13.5
billion in 2004, the company is committed to a digitally oriented growth
strategy focused on the following businesses: Health -- supplying the
medical and dental industries with traditional and digital
imaging-information products and services, as well healthcare IT
solutions and services; Graphic Communications - offering on-demand
colour and black and white printing, wide-format inkjet printing,
high-speed, high-volume continuous inkjet printing, as well as document
scanning, archiving and multi-vendor IT services; Digital & Film Imaging
Systems - providing consumers, professionals and cinematographers with
digital and traditional products and services; and Display & Components
- which designs and manufactures state-of-the-art organic light-emitting
diode displays as well as other specialty materials, and delivers
imaging sensors to original equipment manufacturers. More information
about Kodak (NYSE:EK) is available at www.kodak.com.

About Christie

Christie is a leader in visual solutions for world-class organizations,
offering diverse applications for business, entertainment, and industry.
A leading innovator in film projection since 1929 and a pioneer in
projection systems since 1979, Christie has established a global
reputation as a total service provider and the world's single source
manufacturer of a variety of display technologies and solutions.
Christie offers comprehensive solutions for cinema, large audience
venues, control rooms, business presentations, training facilities, 3D
and Virtual Reality, simulation and education as well as industrial and
government environments. Christie solutions are used in over 75,000
locations worldwide, including more than 10,000 projectors and displays
networked with ChristieNET™ networking devices. For more information,
visit www.christiedigital.com.



Cineplex Odeon Eglinton Town Centre
Scarborough, Ontario - 16 screens
1901 Eglinton Avenue M1E 2L8

Cineplex Odeon Varsity Cinemas
Toronto, Ontario - 12 screens
55 Bloor Street West M4W 1A5

Cineplex Odeon Square One Cinemas
Mississauga, Ontario - 10 screens
100 City Centre Drive L5B 2C9

Cineplex Odeon Grande at Sheppard Cinemas
Toronto, Ontario - 10 screens
4861 Yonge Street (at Sheppard) M2N 5X2

Cineplex Odeon Mornngside Cinemas (at Hwy.401)
Scarborough, Ontario - 11 screens
785 Milner Road M1B 3C3

Cineplex Odeon Queensway Cinemas (QEW at Islington)
Toronto, Ontario - 18 screens
1025 The Queensway M8Z 6C7

Cineplex Odeon First Markham Place Cinemas
Markham, Ontario - 10 screens
3275 Hwy 7 L3R 3P9

Cineplex Odeon Orion Gate Cinemas
Brampton, Ontario - 10 screens
20 Biscayne Road L6W 4S1

Cineplex Odeon Elgin Mills Cinemas
Richmond Hill, Ontario - 10 screens
10909 Yonge Street L4C 3E3

Galaxy Cinemas Waterloo (at Conestoga Mall)
Waterloo, Ontario - 10 screens
550 King St. N. N2L 5W6

Galaxy Cinemas Guelph
Guelph, Ontario - 10 screens
485 Woodlawn Rd West N1K 1E9

Galaxy Cinemas Cambridge (at Cambridge Centre)
Cambridge, Ontario - 9 screens
355 Hespeler Rd. N1R 6B3

Cineplex Odeon Niagara Square Cinemas
Niagara Falls, Ontario - 10 screens
7555 Montrose Road L2H 2E9

Cineplex Odeon Upper James Cinemas
Hamilton, Ontario - 7 screens
1405 Upper James Street L9B 1K3

Cineplex Odeon Fairview Mall Cinemas
St. Catherine's, Ontario - 9 screens
285 Geneva Street L2N 2G3

Cineplex Odeon Ajax Cinemas
Ajax, Ontario - 10 screens
248 Kingston Road, L1S 4S7

Cineplex Odeon Clarington Cinemas
Bowmanville, Ontario - 11 screens
111 Clarington Blvd L1C 4Z3

Galaxy Cinemas Peterborough (in Peterborough Square)
Peterborough, Ontario - 11 screens
320 Water St. K9H 3L5

Cineplex Odeon Grande at Barrie
Barrie, Ontario - 12 screens
72 Commerce Park Drive L4N 8W8

Galaxy Cinemas Orangeville (at Fairgrounds Shopping Centre)
Orangeville, Ontario - 7 screens
Fairgrounds Shopping Centre, 85 Fifth Ave. L9W 5B7

Galaxy Cinemas Orillia
Orillia, Ontario - 6 Screens
865 West Ridge Boulevard L3V 8B3


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