Regal CineMedia Forges Digital Network Affiliate Relationship with Georgia Theatre Company

September 27, 2004
"lobby plasma screens, inclusive of GTC locations and the pending Signature Theatres acquisition. The DCN will reach nearly 275 million annual movie attendees. In making the announcement, Mr. Hall said"
DENVER & ATLANTA--(BUSINESS WIRE)--Sept. 27, 2004--Regal CineMedia (CineMedia), the media subsidiary of Regal Entertainment Group (REG, NYSE: RGC), has entered into an exclusive, multi-year digital network affiliate agreement with Georgia Theatre Company (GTC), the 18th largest motion picture exhibition company in the U.S. The announcement was made today by Kurt Hall, Co-Chairman and Co-Chief Executive Officer, Regal Entertainment Group; Bill Stembler, President, Georgia Theatre Company; and Tom Galley, Executive Vice President and Chief Technology Officer, Regal CineMedia.

Under the terms of the new relationship, GTC will join the CineMedia Digital Content Network (DCN)(SM) as a network affiliate. The addition of GTC will expand the reach of the DCN to GTC movie theatre locations throughout Georgia (Atlanta DMA), South Carolina and Virginia. The new affiliate agreement allows for the delivery of customized pre-show content and advertising; marketing and sales support for cinema advertising; as well as an option to participate in upcoming digitally delivered events, including concerts, educational events and corporate business meetings.

The DCN affiliate program has been created to allow theatre owners to participate in the growth of national cinema advertising programs through the distribution of a customized version of The 2wenty digital pre-show. In addition, a new source of alternative digital programming for non-peak movie-going periods will be provided to GTC.

The DCN was launched in February 2003 and currently distributes advertising and digital content to over 5,200 screens reaching more than 425 theatres in 78 markets, including 30 of the top 30 and 45 of the 50 top grossing box-office markets in the U.S. By the end of 2004, the DCN will reach approximately 475 theatres, extending to over 5,700 theatre screens and nearly 1,400 42" lobby plasma screens, inclusive of GTC locations and the pending Signature Theatres acquisition. The DCN will reach nearly 275 million annual movie attendees.

In making the announcement, Mr. Hall said, "We've learned a great deal over the last two years about how national reach combined with lower cost digital technology can help create new revenue opportunities for theatre exhibitors, while supporting and enhancing the customers' entertainment experience. With the successful deployment of the DCN in REG theatres, we are now ready to help other exhibitors improve their pre-feature programming and increase their seat utilization with new forms of digital programming."

Mr. Galley added, "The unique architecture of CineMedia's software, combined with the flexibility and high reliability of the Digital Content Network, will provide Georgia Theatre Company and other circuits within the industry the benefits of a high-quality national distribution platform. Georgia Theatre Company owns and operates a first-rate circuit and we are very pleased to have them as a valued digital network affiliate."

"We are extremely excited to be partnering with Regal CineMedia to utilize their cutting-edge digital network to provide the patrons of Georgia Theatre Company with an enhanced movie-going experience. Further, their DCN technology will allow us to see additional revenues by providing such events as live concerts, educational forums, and business seminars to the communities we serve," said Mr. Stembler.

Forward-looking Statements:

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements included herein, other than statements of historical fact, may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the risk factors contained in the Company's 2003 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2004. All forward-looking statements are expressly qualified in their entirety by such factors.

About Regal CineMedia

CineMedia's Digital Content Network (DCN) is the world's largest theatre-based video and communications network for the delivery of high quality digital content. CineMedia has previously used its DCN to present live and pre-recorded events in High Definition via satellite to multiple REG theatres. Recent examples include concerts with musical artists such as Phish, Prince and Matchbox 20; a "virtual interactive classroom" educational event featuring the cast, director and screenwriter of the popular motion picture Holes; and a session with Academy Award-winning director James Cameron (Titanic, Ghosts of the Abyss) answering questions for students participating in theatres across the U.S.

The DCN is also used to distribute CineMedia's pre-feature program, The 2wenty, that features short-form entertainment segments provided by Universal, Sony Pictures Entertainment, NBC and Turner Broadcasting Systems, interspersed with primarily made-for-cinema advertising.

Regal CineMedia is a wholly owned subsidiary of Regal Entertainment Group focusing on the expansion and development of in-theatre marketing and advertising products and the distribution of various forms of digital programming across the DCN. Regal CineMedia also operates other divisions that focus on business meetings, corporate communication, interactive education and special productions in a theatre environment, including the presentation of entertainment, music and sports events, as well as the sale of group tickets and gift certificates.

About Georgia Theatre Company

Georgia Theatre Company is the 18th largest motion picture exhibition company in the United States with 257 screens at 27 locations throughout Georgia, South Carolina and Virginia. Georgia Theatre Company is a pioneer in the industry with its roots in the early days of film exhibition. Georgia Theatre Company prides itself on providing state-of-the-art motion picture facilities featuring stadium seating and the best sound systems available in the communities it serves. The company is headquartered in Saint Simons Island, Georgia. Additional information is available on the Company's Web site at www.georgiatheatrecompany.com.

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 6,053 screens in 544 locations in 39 states. Regal operates approximately 17% of all screens in the United States including theatres in 46 of the top 50 U.S. markets and growing suburban areas. The size, reach and quality of the Company's theatre circuit not only provides patrons with a convenient and enjoyable movie-going experience, but is also an exceptional platform to realize economies of scale in theatre operations and, through Regal CineMedia, develop new sources of revenue and cash flow by utilizing Regal's existing asset base.

Additional information is available on the Company's Web site at www.REGmovies.com or www.regalcinemedia.com.

Contact:

Media Contact:
Regal CineMedia, New York
Lauren Leff, 212-931-8107
lauren.leff@regalcinemedia.com
or
Financial Contact:
Regal Entertainment Group, Knoxville
Don DeLaria, 865-925-9685
don.delaria@regmovies.com