Muvico Theaters Attacked by Corporate Internet Sabotage; Federal and State Authorities Are Investigating Malicious Attack That Has Disrupted Certain Operations & Its Hallmark Customer Service Throughout Its Circuit

Business Wire, May 11, 2006

FORT LAUDERDALE, Fla. -- Muvico Theaters has become the latest victim of the upward trend in corporate internet sabotage. This past weekend, Muvico's computer systems were infected by a Trojan virus that was deliberately timed to paralyze theater operations and severely affect Muvico Theaters' mission of providing the premium customer service that has become the hallmark of the 233-screen theater circuit. The malicious attack inconvenienced thousands of movie-goers during the opening weekend of the blockbuster film Mission Impossible III.

Federal and state authorities are investigating the illegal infiltration of the movie circuit's IT system and the surreptitious insertion of a malicious computer virus into the circuit's IT system late afternoon on Friday, May 5th. The assault on Muvico's computer system appears to have been deliberately timed to attack after the in-office staff had left for the weekend. Muvico management noted that before the attack hit and infected its internet server at 5:55 p.m. Friday, the alarm in its headquarters building was triggered at approximately 5:30 p.m., and all occupants were instructed to immediately vacate the building until it was deemed safe to re-enter shortly after 6 p.m. (after the virus was engaged).

"While it is disconcerting from a management perspective to be a victim of internet sabotage, it was most unnerving to know that Muvico's mission of delivering its hallmark customer service was jeopardized and compromised," said Muvico Theaters President Michael Whalen. "We want our guests to know that we and the federal authorities are taking this calculated intrusion very seriously, and apologize to them for any inconvenience this vicious attack may have caused them, and Muvico's IT team in conjunction with security experts are working around the clock to restore and improve security of our web-based operations to prevent this from happening again."

Whalen added that as soon as the breach was identified, all IT communications were disengaged to prevent any further damage and ramifications from occurring, and that the system will not be in full operation until there are safeguards in place to insure the security of the system for all of those who engage it, from corporate offices and theater operations to the movie-going public.

Movie-goers most affected were those who purchased their tickets with credit cards or through Muvico Theaters' on-line web-based advance ticket program. Until the systems are back in full operation, Muvico management reminds all on-line purchasers of advance tickets to bring their on-line receipts and credit cards to the Guest Services desk at their perspective theater to pick up their tickets. Muvico kindly asks its guests to be patient as they work toward ensuring all of their systems are operational and clean of any computer virus.

Whalen reported that while Muvico does not yet know when its system will be in full operation, it is doing everything it can do to minimize inconvenience to its guests, such as manual credit card processing, and providing portable cash registers at its locations to expedite service. Additionally, ATM machines will be installed in the near future to enhance the overall guest experience.

"While there is never a good time for such a blatant attack on any company, this is a particularly unfortunate time for all involved, from both revenue and guest services perspectives, with the groundswell excitement surrounding what promises to be the season's most highly attended films such as Mission Impossible III , Poseidon, and Da Vinci Code," added Whalen. When asked to comment on the apparent coincidence of the computer attack and recent highly-publicized litigation, Whalen refused to speculate about any connection.

Whalen added that Muvico has a zero tolerance policy for this type of activity and will work closely with federal authorities to identify and prosecute the infiltrator(s) to the fullest extent of the law.

"We have much to protect at Muvico, and at the forefront is our commitment to customer service," concluded Whalen.

Muvico Theaters, based in Fort Lauderdale, Florida, currently operates 12 theaters with 233 screens in Florida, Maryland and Tennessee with 120 additional screens in various stages of development across the eastern United States. For more information, contact 954-564-6550 or visit http://www.muvico.com.

EDITOR'S NOTE: Phone interviews and on-site coverage are available; to make arrangements, please call John Spano, Vice President of Communications at Muvico Theaters at 954-564-6550 or Bonnie Kaye at Kaye Communications, Inc. 561-756-3099 (mobile).