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Friday, October 13, 2006

Theatre Ad & Distribution Platform National CineMedia Files for IPO

National CineMedia hasfiled to come public via an IPO under the NASDAQ stock ticker "NCMI." National Cinemedia is a venture of AMC, Cinemark, and Regal Entertainment; but this is the ADVERTISING and in-theatre events venture of the movie theatre chains instead of the chains themselves. The network operated by the founding venture members is a combined 1,100+ theatres that comprise some 14,000 screens, and that is said to comprise one-third of movie ticket sales in the US.

Credit Suisse, J.P.Morgan, Lehman Brothers, and Morgan Stanley are the listed underwriters.

National CineMedia operates the largest digital in-theatre network in North America, used to distribute content for advertising, meetings and events businesses. It will have long-term exhibitor services agreements, ESA's, with the founding members AMC, Cinemark and Regal and multi-year agreements with several other theatre operators whom we refer to as the Network Affiliates.

They provide the distribution platform for the theatres: system of digital and satellite technology, is the world's largest technologically advanced in-theatre network. National CineMedia claims to be the only company capable of producing unique in-theatre events on a national scale. They can even accomodate a live CEO or message broadcast to hundreds of theatre locations simultaneously, or handle a live concert delivered via video and audio to many locations in a theatre environment.

During the 9 montsh ended Dec. 29, 2005 the company posted total revenues of $98.8 million and posted a net loss of $6.9 million. For the 6 months ended June 29, 2006 the company posted $84.5 million in revenues, and posted a net loss of $10.6 million.

Jon C. Ogg
October 13, 2006

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