Cineplex Galaxy LP

Cineplex Galaxy LP
Motion Picture Distribution LP

Motion Picture Distribution LP

September 28, 2005 09:29 ET

Cineplex Galaxy LP and Motion Picture Distribution LP Announce Sale of Fifth Avenue Cinemas

TORONTO, ONTARIO--(CCNMatthews - Sept. 28, 2005) - Cineplex Galaxy LP (TSX:CGX.UN) and Motion Picture Distribution LP (TSX:FLM.UN) jointly announced today the sale of the Fifth Avenue Cinemas to Festival Cinemas Ltd of Vancouver, BC. The transaction is expected to close September 30, 2005, subject to satisfaction of customary closing conditions.

Fifth Avenue Cinemas is one of five cinemas jointly owned by Motion Picture Distribution LP and Cineplex Galaxy LP and operated under the Alliance Atlantis brand. The other Alliance Atlantis brand cinemas include: Bayview Village Cinema, Beaches Cinema and Cumberland Cinema in Toronto, ON and University 4 Cinema in Victoria, BC.

Ellis Jacob, President and CEO, Cineplex Galaxy said "we are pleased to announce that we have an agreement to sell the Fifth Avenue Cinemas to Festival Cinemas. This is the second theatre sale we have announced since completing the acquisition of Famous Players on July 22, 2005."

Victor Loewy, Chief Executive Officer, Motion Picture Distribution LP said "Festival Theatres purchase of Fifth Avenue Cinemas makes perfect sense for them and provides a good return on investment for us. We are confident that Leonard Schein and his team at Festival Cinemas will continue the tradition of bringing great cinematic experiences to film lovers at the Fifth Avenue Cinemas."

Leonard Schein, President, Festival Cinemas said "we are delighted with this acquisition and believe it will add great value to our unique group of Vancouver area theatres." As part of the agreement, Festival Cinemas will offer employment to most of the staff currently employed in these theatres.

About Cineplex Galaxy LP:

Cineplex Galaxy LP owns, operates or has an interest in 132 theatres with1, 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 motion picture exhibitor in Canada. Headquartered in Toronto, Canada, the company operates theatres with the following five top-tier brands: Cineplex Odeon, Coliseum, Colossus, Galaxy and Silver City. Proudly Canadian, Cineplex Galaxy Income Fund, which owns approximately 50.5% 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 or at

About Motion Picture Distribution LP and Movie Distribution Income Fund

Motion Picture Distribution LP is the largest distributor of motion pictures in Canada, with a growing presence in motion picture distribution in the United Kingdom and Spain, and a 23-screen chain of upscale cinemas in Canada in partnership with Cineplex Galaxy LP. The Company distributes filmed entertainment to theatres, on video and DVD, and to television broadcasters. Unit holders of Movie Distribution Income Fund (TSX: FLM.UN) hold a minority interest in Motion Picture Distribution LP.

About Festival Cinemas Ltd:

Owned by Leonard Schein and Tom Lightburn, Festival Cinemas was founded in 1986 and has a commitment to showing art, specialty, Canadian, and high quality films. Festival Cinemas opened Fifth Avenue Cinemas in 1996 and established a new benchmark for a hip style of urban cinema. Fifth Avenue was sold in 1998 to Alliance Atlantis Cinemas. This year they renovated and reopened the Park Theatre on Cambie Street. Festival Cinemas has been a huge part of the movie going scene in Vancouver having also operated the Varsity Theatre, Starlight Cinema, Ridge Theatre, and the Vancouver East Cinema.

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