1 1 CINEPLEX GALAXY Canada’s #1 Film Exhibitor Q2 Report

2 2 Cineplex Galaxy Locations:86 Screens:775 Locations:80 Screens:785

3 3 Rationale for the Acquisition The Leading Film Exhibitor in Canada Immediately Accretive to Distributable Cash Complementary Operations will Lead to Cost Savings Opportunities to Increase Distributable Cash through Revenue Growth Addition of High Quality theatres in Metropolitan Markets Superior Combined Management The Leading Film Exhibitor in Canada Immediately Accretive to Distributable Cash Complementary Operations will Lead to Cost Savings Opportunities to Increase Distributable Cash through Revenue Growth Addition of High Quality theatres in Metropolitan Markets Superior Combined Management

4 4 Famous Players Acquisition Deal signed June 10, 2005 Deal closed July 22, 2005 Organization structure finalized July 29, 2005 Sale of real estate to Rio Can completed August 4, 2005 Employee integration/terminations completed August 5, 2005 Announced sale of 27 locations to Empire on August 22, 2005 for gross proceeds of approx. $83 million Deal signed June 10, 2005 Deal closed July 22, 2005 Organization structure finalized July 29, 2005 Sale of real estate to Rio Can completed August 4, 2005 Employee integration/terminations completed August 5, 2005 Announced sale of 27 locations to Empire on August 22, 2005 for gross proceeds of approx. $83 million

5 5 Executive

6 6 Top Tier Theatre Brands SilverCity 22 theatres/286 screens BC, AB, MB, ON, QC Colossus 3 theatres/56 screens QC, ON, BC

7 7 Top Tier Theatre Brands Coliseum 4 theatres/49 screens 3 in ON, QC Paramount 4 theatres/53 screens BC, AB, ON, QC “Renaming opportunity”

8 8 Top Tier Theatre Brands Premium “Urban” Market Brand 51 theatres/489 screens Mid-size market brand Community focus 23 theatres/193 screens

9 9 Financing the Acquisition Gross ProceedsNumber of Units Subscription Receipts$110 million6,835, % Convertible Debentures $105 million Incremental Borrowing under Credit Facility $259 million Subsequent repayments of incremental borrowing RioCan transaction$67 million Empire sale (27 theatres)$83 million Remaining divestitures$TBD

10 Synergies Completed to Date: Employee head count reduced by 35% -- well on the way to meeting $20mm target Head office employee integration/terminations completed August 5, 2005 Planned to Occur: Vendor Contract negotiations Head office facility integration - December 31, 2005 Technology integration – October 31, 2005 Merging the Media businesses – October 31, 2005 Marketing efficiencies – single programs for all brands Completed to Date: Employee head count reduced by 35% -- well on the way to meeting $20mm target Head office employee integration/terminations completed August 5, 2005 Planned to Occur: Vendor Contract negotiations Head office facility integration - December 31, 2005 Technology integration – October 31, 2005 Merging the Media businesses – October 31, 2005 Marketing efficiencies – single programs for all brands

11 Market Share of Canadian Box Office Revenues Q2 YTD 2004Q2 YTD 2005 AMC: 6.5% Cineplex Galaxy: 31.4% Famous Players: 42.8% Empire: 5.7% Landmark: 2.9% Guzzo: 3.1% Other: 7.6% Source: A.C. Nielsen EDI data Strong Market Share Cineplex Galaxy: 32.1% Famous Players: 42.6% Other: 6.9% Guzzo: 3.0% Landmark: 3.1% Empire: 6.0% AMC: 6.3%

12 Market Share of Canadian Box Office Revenues Q2 YTD 2005 Cineplex Galaxy Combined After Divestiture Market Share of Canadian Box Office Revenues Q2 YTD 2005 Cineplex Galaxy Combined After Divestiture AMC: 6.3% Cineplex Galaxy: 32.1% Famous Players: 42.6% Empire: 6.0% Landmark: 3.1% Guzzo: 3.0% Other: 6.9% Source: A.C. Nielsen EDI data Strong Market Share Cineplex Galaxy: 64.2% Other: 9.8% Guzzo: 3.0% Landmark: 3.1% Empire: 13.6% AMC: 6.3%

13 Diverse Supply of Films Cineplex Galaxy Film Supply by Distributor YTD Q Paramount 6.0% Alliance Atlantis: 13.5% DreamWorks: 5.8% Other: 6.2% Warner Bros: 13.0% Twentieth Century Fox.: 22.5% Buena Vista 5.9% Sony 12.1% Universal 10.5% MGM: 4.5%

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15 Canadian Box Office Revenues Canadian Box Office Revenues $ Millions Canadian Recessionary Periods CAGR since 1965: 6.3% Consistent Long-Term Box Office Revenue Growth

16 Current Year CGX vs. Industry Q1Q2Q2 YTD Canadian Industry (*) - 5.4%- 16.9%- 11.7% Cineplex Galaxy- 4.7%- 13.2%- 9.2% (*) source: Motion Picture Theatre Association of Canada

Consistent Supply of Theatrical Releases Source: Motion Picture Association of America, 2003 US Annual Film Releases Films greater than $100 million gross

18 Highest Grossing Films in 2005 Batman Begins $202.5 Batman Begins $202.5 Charlie and the Chocolate Factory $194.8 Charlie and the Chocolate Factory $194.8 Madagascar $183.6 Madagascar $183.6 War of the Worlds $230.9 War of the Worlds $230.9 Star Wars Episode3 Revenge of the Sith $379.1 Star Wars Episode3 Revenge of the Sith $379.1 In Millions of dollars

19 Highest Grossing Films in 2004 The Passion of the Christ $370.2 The Passion of the Christ $370.2 Meet the Fockers $279.2 Meet the Fockers $279.2 The Incredibles $261.4 The Incredibles $261.4 Spiderman 2 $373.5 Spiderman 2 $373.5 Shrek 2 $441.2 Shrek 2 $441.2 In Millions of Dollars

20 Upcoming Films for 2005 Harry Potter and the Goblet of Fire November 2005 The Lion, the Witch and the Wardrobe December 2005 King Kong December 2005 Fun with Dick and Jane December 2005 Fun with Dick and Jane December 2005 The Producers December 2005

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22 Increasing Revenue Per Patron Revenue Per Patron Pro forma normalized values $9.83 $ $ 10.84$ $ $ $12.31

23 Box Office Pricing Strategy: Cineplex Galaxy – Theatre based pricing strategy Famous Players – Market based pricing strategy Action Plan: Integrate to theatre based pricing strategy Strategy: Cineplex Galaxy – Theatre based pricing strategy Famous Players – Market based pricing strategy Action Plan: Integrate to theatre based pricing strategy

24 Expanded Concessions Driving Revenue per Patron Average Concession Dollars per Patron

25 Significant Other Revenue Contribution Ancillary Revenues ($mill) $13.4 $ 17.4 $ 20.9 $ 22.8 $ 9.5 $ % $ 62.5

26 ProjectScreens Projected Opening Brand Barrhaven Aurora Milton Brockville Saskatoon Brossard Burloak Oct Nov Spring 2006 Fall 2006 New Projects Announced

27 Cost Control Prominent market position allows for effective management of direct theatre- level costs Best practices amongst both companies will result in incremental operating savings and revenue enhancements Significant focus on managing costs to the business volumes Prominent market position allows for effective management of direct theatre- level costs Best practices amongst both companies will result in incremental operating savings and revenue enhancements Significant focus on managing costs to the business volumes

28 Corporate Initiatives 2005 New Theatres: Theatre Rebranding On-Screen Advertising Business Integration POS System integration Loyalty Program Digital Advertising Pre-Show Network New Theatres: Theatre Rebranding On-Screen Advertising Business Integration POS System integration Loyalty Program Digital Advertising Pre-Show Network

29 Threats to the Business Threats: Piracy DVD release window erosion Quality of Film Product Opportunities: Social aspect of an out-of-home experience vs. stay at home Theatre technology is far superior to “in-home” television system and screen Entertainment Destinations Threats: Piracy DVD release window erosion Quality of Film Product Opportunities: Social aspect of an out-of-home experience vs. stay at home Theatre technology is far superior to “in-home” television system and screen Entertainment Destinations

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31 Annual Total Revenue ($ millions) Screen Count

32 Annual Box Office ($ millions) 16.0% CAGR

33 Annual Attendance (millions) 10.8% CAGR

34 Annual Concession Revenues ($ millions) 15.9% CAGR

35 Annual EBITDA ($ millions) EBITDA Margin Adjusted EBITDA Margins – LTM March 2005: CGX20.2% FP 9.0%

36 Flexible Financing Structure Development Facility –Available - $60 million Working Capital Facility –Available - $50 million Term Facility –Available - $315 million (reduced with divestiture proceeds) Development Facility –Available - $60 million Working Capital Facility –Available - $50 million Term Facility –Available - $315 million (reduced with divestiture proceeds)

37 Leverage $ millions Debt prior to acquisition of FP$141 Incremental acquisition debt259 Repayment – RioCan transaction Repayment – Empire transaction Repayment – additional divestiture proceedsTBD Net debt$250 Pro forma LTM March 2005 Adjusted EBITDA$101.4 Non-cash items6.4 Pro forma LTM March 2005 “Adjusted Cash EBITDA” - pre-synergies$107.8 Synergies20.0 Pro forma LTM March 2005 “Adjusted Cash EBITDA” – post-synergies$127.8 Pro forma LTM March 2005 Leverage – pre-synergies(*)2.3 x Prom forma LTM March 2005 Leverage – post-synergies (*)2.0 x (*) excludes debt reduction with additional divestiture proceeds

38 Focus on Value Creation The number one Canadian film exhibitor with a market share of 64.2 %+ of Canadian Box Office Own and operate the five top-tier entertainment brands in Canada Significant opportunities to grow distributable cash Only exhibitor in Canada with a continuing build program Marketing power of the brands – reach more than 85 million Canadians across the country. The number one Canadian film exhibitor with a market share of 64.2 %+ of Canadian Box Office Own and operate the five top-tier entertainment brands in Canada Significant opportunities to grow distributable cash Only exhibitor in Canada with a continuing build program Marketing power of the brands – reach more than 85 million Canadians across the country.

39 CINEPLEX GALAXY Contact: Gord Nelson, Chief Financial Officer, Pat Marshall, Vice President Investor Relations,