Cineplex Galaxy Income Fund
TSX : CGX.UN

Cineplex Galaxy Income Fund
Cineplex Galaxy LP

Cineplex Galaxy LP

August 04, 2005 09:36 ET

Cineplex Galaxy Completes Sale of Real Estate Interests in Four Theatre Locations to RioCan

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2005) - Cineplex Galaxy Income Fund (Cineplex)(TSX:CGX.UN) announced today that it has completed the sale of its real estate interests in four theatre locations to RioCan Real Estate Investment Trust (RioCan) (TSX: REI.UN) for $67 million. The proceeds of this sale will be used to repay a portion of the debt financing related to the acquisition of Famous Players which was completed on July 22, 2005.

The four theatre locations are the Colossus Vaughan, Coliseum Ottawa, Cineplex Odeon North Edmonton Cinemas and Cineplex Odeon Beauport Cinemas. Cineplex will continue to operate the four theatres and has entered into 20 year lease agreements for each property.

Cineplex also announced that Edward Sonshine, President and CEO of RioCan, will resign from his position on the Cineplex Galaxy Income Fund Board of Trustees effective immediately. "Ed Sonshine is an extremely gifted businessman with a great mind and tremendous insight. He was a significant contributor to our company and we will miss his experience and intelligence which has helped guide the growth and development of Cineplex Galaxy. We want to thank Ed for all the work that he has done on our behalf," said Ellis Jacob, President and CEO, Cineplex Galaxy.

About Cineplex Galaxy

Cineplex Galaxy LP owns, operates or has an interest in 132 theatres with 1,278 screens (after giving effect to the 34 theatres and 282 screens to be divested pursuant to a consent agreement with the Canadian Commissioner of Competition) and is the largest film exhibition company in Canada. The company operates theatres with the following five top-tier brands: Cineplex Odeon, Coliseum, Colossus, Galaxy and SilverCity. Proudly Canadian, Cineplex Galaxy Income Fund, which owns approximately 50.2% of Cineplex Galaxy LP, is a public company traded on the Toronto Stock Exchange under Cineplex Galaxy Income Fund (symbol CGX.UN). More information can be found at www.cineplexgalaxy.com

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