National CineMedia and Hollywood Theaters Enter Into Affiliate Agreement to Present Pre-Show Advertising, Meetings and Alternative Events in Eighth Largest U.S. Movie Circuit

Business Wire, March 25, 2008

CENTENNIAL, Colo. & PORTLAND, Ore. -- National CineMedia LLC (NCM), has entered into a network affiliate agreement with Hollywood Theaters, the eighth largest movie theater exhibition company in the U.S., for the presentation of pre-show advertising, comprehensive meetings and event services, and in-theater entertainment events through its NCM FATHOM division. Under the terms of the new, exclusive multi-year agreement, Hollywood Theater locations in 15 states including Alabama, Arizona, California, Florida, Hawaii, Kansas, Louisiana, Missouri, Montana, Nevada, Ohio, Oklahoma, Pennsylvania, Texas and West Virginia, will exclusively present NCM's digitally distributed pre-show program, FirstLook; offer in-theater corporate meetings and event services through NCM's CineMeetings; and present NCM FATHOM live and pre-recorded in-theater entertainment events.

The agreement will be effective on April 1, 2008, with respect to approximately 480 screens in select locations including Malibu, Cal.; Jacksonville, Fla.; Honolulu, Hawaii; Topeka, Kan.; and Columbia, Mo.; among others.

NCM currently has exclusive, long-term agreements in place with its founding member exhibitors, AMC Entertainment Inc., Cinemark USA Inc. (NYSE:CNK) and Regal Entertainment Group (NYSE:RGC), as well as network affiliate pacts with theater circuits such as Georgia Theatre Company, Goodrich Quality Theatres, Kerasotes ShowPlace Theatres and Marcus Theatres, among others. Hollywood Theaters is the most recent addition to the expanding NCM national network, the largest digital video and satellite distribution network in the U.S. NCM FATHOM, the company's entertainment events division, also has agreements in place with affiliate theaters such as National Amusements and Malco Theatres for the distribution of digital alternative events and other content within select theaters.

"We are pleased to be adding Hollywood Theaters as our newest affiliate partner participating in NCM's cinema advertising business, in-theater meetings and NCM FATHOM events," said Kurt Hall, president and chief executive officer at NCM. "The continued expansion of our network's reach and quality is providing marketers a more effective alternative to reach consumers on a local, regional and national basis."

"We at Hollywood Theaters are excited to be a part of the expanding National CineMedia network. We look forward to offering our customers high-quality cinema advertising products and services, such as NCM's pre-show program FirstLook, NCM's Lobby Entertainment Network and other in-theater promotional opportunities," said Clyde Cornell, chief operating officer of Hollywood Theaters. "Additionally, we anticipate increasing our ancillary revenues through NCM FATHOM entertainment events, corporate meetings and auditorium rental programs."

Since 2002, NCM has presented a digitally delivered pre-show entertainment program to movie theaters nationwide, now called FirstLook. FirstLook features content provided by some of Hollywood's most well-known entertainment companies, including A&E Television Networks, Discovery Communications, Disney Home Entertainment, NBC, Sony Pictures Entertainment, Turner Broadcasting, Universal Pictures and Warner Bros., as well as primarily made-for-cinema advertising. NCM also presents a variety of music, sports and other entertainment events, as well as corporate meetings, in movie theaters during off-peak movie-going hours using its proprietary digital distribution and satellite network. Prior NCM FATHOM in-theater presentations have included live, High Definition performances of The Metropolitan Opera; the "Dirty Dancing 20th Anniversary Celebration;" and numerous concert events featuring popular artists such as Garth Brooks, Celine Dion, The Rolling Stones, Bruce Springsteen, Prince, Bon Jovi and Linkin Park, among others.

About Hollywood Theaters

Portland, Oregon based Hollywood Theaters is the 8th largest theater circuit in the United States. The company operates over 500 screens, with theaters in 15 states including: AL, AZ, CA, FL, HI, KS, LA, MO, MT, NV, OH, OK, PA, TX, and WV including theaters in Guam, Saipan and American Samoa and Grand Cayman. Hollywood Theaters currently has three state of the art facilities in construction: Colorado Springs, Colorado; Springfield, Missouri and Port Orange, Florida.

About National CineMedia, Inc.

National CineMedia (NCM) LLC operates the largest digital in-theater network in North America through long-term agreements with its founding members, AMC Entertainment Inc., Cinemark USA Inc. (NYSE:CNK) and Regal Entertainment Group (NYSE:RGC), the three largest theater operators in the U.S., and through multi-year agreements with several other theater operators. NCM LLC produces and distributes its FirstLook pre feature program; cinema and lobby advertising products; comprehensive meeting and event services and other entertainment programming content. NCM LLC's national network includes over 15,250 screens of which over 13,200 are part of the company's Digital Content Network (DCN). NCM LLC's DCN covers 169 Designated Market Areas[R] (49 of the top 50). During 2007, approximately 542 million patrons attended movies shown in theaters owned by the NCM LLC founding members (excluding Loews). National CineMedia, Inc. (NASDAQ:NCMI) owns a 44.8% interest in and is the managing member of NCM LLC. For additional information, visit www.ncm.com.