Vivendi UNIVERSAL Entertainment and Regal Entertainment Group's Media Subsidiary Enter into New, Multi-Year Programming and Content Agreement

Business Wire, Jan 30, 2003

Business Editors

UNIVERSAL CITY, Calif. & DENVER--(BUSINESS WIRE)--Jan. 30, 2003

Alliance Establishes New Paradigm for Leading Studio and

Distributor to Expand Entertainment Experience for Movie Patrons

Vivendi UNIVERSAL Entertainment ("VUE"), a division of Vivendi Universal (NYSE: V) and Regal CineMedia Corporation ("RCM"), the media subsidiary of Regal Entertainment Group ("REG", NYSE:RGC), the largest theatre operator in the world, have entered into a multi-year programming and content alliance.

The new agreement marries a world-class entertainment brand with the largest movie exhibitor to create an enhanced entertainment experience for movie patrons. VUE will develop entertaining promotional content to be presented during the pre feature program for RCM's new in-theatre digital network. The announcement was made today by Beth Goss, Executive Vice President, The Brand Group, Universal Pictures and Kurt Hall, RCM's Chief Executive Officer.

RCM is currently deploying a state-of-the-art national Digital Content Network ("DCN") for the delivery of digital video content, including entertainment, sports and educational programming, as well as on-screen and in-lobby promotional materials. The DCN is being installed in approximately 375 theatres covering 19 of the top 20 and 43 of the top 52 markets through the end of 2003. The Regal CineMedia DCN is expected to be the world's largest such network with digital distribution capabilities on a targeted basis to nearly 4,500 theatre screens and 1,400 42" high-resolution plasma screens in the theatre lobbies. The DCN is expected to launch during the first quarter of 2003 in 12 markets (nine of the top 10), with other markets added throughout 2003.

Under the terms of the new agreement, VUE will create content to be presented on theatre screens prior to the feature presentation in REG's theatres (Regal Cinemas, United Artists Theatres and Edwards Theatres) that are part of the Regal CineMedia DCN. The pre-feature content will highlight entertainment properties from a wide-range of VUE divisions including Universal Studios theme parks, Universal Studios Home Video, Universal Pictures, Universal Interactive Studios and Universal Television Group

"This is the first time an exhibitor and studio partner have come together to present entertainment product beyond traditional distribution agreements," said Goss. "This new agreement expands and reinforces our already successful relationship with REG theatres and gives us a new platform to showcase all of Universal's entertainment properties to a receptive audience nationwide."

"We are very excited to be working with VUE as we explore a new paradigm with our Digital Content Network," said Hall. "Regal CineMedia is committed to enhancing the entertainment experience for our patrons, while creating a new content platform for world-class entertainment companies such as VUE to showcase the full-range of their product."

"With a heritage that spans more than 90 years of entertainment history, we are thrilled to have VUE as our digital network partner," added Cliff Marks, RCM president, Marketing and Sales. "As technology evolves and creates new vehicles for delivering entertainment content, new opportunities also develop. We're very excited to be exploring these new frontiers with our colleagues at VUE."

In addition to the development of enhanced entertainment segments prior to its movie presentations, RCM is also pioneering other uses for its theatres. RCM recently utilized its network to simulcast an exclusive "virtual" movie premiere event in 13 communities for the opening of a recent Hollywood feature film. Additionally, a Korn rock concert from New York's Hammerstein Ballroom was simulcast in select theatres promoting the release of the band's new album, as well as "The Last DJ," opening concert in support of Tom Petty's latest release. In September 2002, the Company presented the CSU at UCLA college football game live from the Rose Bowl, captured and delivered in high-definition to theatre screens in Colorado and California.

About Regal CineMedia

Regal CineMedia is a wholly owned subsidiary of Regal Entertainment Group focusing on the expansion and development of advertising and new uses for REG's theatre assets, while at the same time enhancing the movie-going experience. The Regal CineMedia marketing, sales and advertising group develops in-theatre advertising and promotions and digital out-of-home advertising via video screens in fast service restaurants. Regal CineMedia operates other divisions that focus on meetings and special productions in a theatre environment, including the presentation of live sports and entertainment events, as well as the sale of group tickets and gift certificates.

About Regal Entertainment Group

Regal Entertainment Group (NYSE: RGC) is the largest motion picture exhibitor in the world. The Company's theatre circuit, comprising Regal Cinemas, United Artists Theatres and Edwards Theatres, operates 5,711 screens in 530 locations in 36 states. The geographically diverse circuit represents over 20% of domestic box office receipts and includes theatres in 41 of the top 50 U.S. Designated Market Areas, as well as prime locations in growing suburban markets. The size, reach and quality of Regal's theatre circuit provides patrons with a convenient and exceptional movie-going experience.