AMC Entertainment Inc. Reports Record Results for Fourth Quarter and FY2002.

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--May 16, 2002

AMC Entertainment Inc. (AMEX: AEN), one of the world's leading theatrical exhibition companies, today reported revenues of $339 million for the fourth quarter of fiscal year 2002 and $1.34 billion for the year ended March 28, 2002.

Both the fourth-quarter revenues, up 17 percent from $290 million in the same period last year, and the fiscal-year revenues, up 10 percent from $1.21 billion in fiscal 2001, represent new Company records.

Adjusted EBITDA (as defined in the attached Financial Summary) for fiscal 2002 also set a new Company record at $161 million, up 20 percent from $133 million last year. Adjusted EBITDA for the fourth quarter stood at $38 million, an increase of 41 percent over $27 million in the year-ago quarter.

"In addition to our record results, fiscal 2002 was a year of many accomplishments for AMC, including three financing transactions that raised over $500 million and the negotiation of two acquisitions that totaled 689 screens," said Peter Brown, chairman and chief executive officer. "Our industry-leading theatre circuit, substantial financial resources and proven management team put us in a strong position to continue the successful execution of our strategic plan, further establishing AMC as a single preeminent theatre brand in the marketplace."

The net loss for the fourth quarter was $9.6 million, or $18.4 million for common shares after preferred dividends, compared to a net loss of $63.6 million in the same quarter last year. The fourth quarter's net loss stood at 76 cents per common share, compared to a net loss of $2.71 per share in the year-ago quarter.

For the 2002 fiscal year, AMC reported a net loss of $11.5 million, or a net loss for common shares of $40.9 million ($1.73 per common share) after preferred dividends. That compares to a net loss of $105.9 million ($4.51 per common share) for fiscal 2001, after a charge for the cumulative effect of an accounting change.

AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company operates 251 theatres with 3,558 screens in the United States, Canada, France, Hong Kong, Japan, Portugal, Spain, Sweden and the United Kingdom. Its Common Stock trades on the American Stock Exchange under the symbol AEN. The Company, headquartered in Kansas City, Mo., has a website at www.amctheatres.com.

Investors will have the opportunity to listen to the quarterly earnings conference call and view the supporting slide presentation at 9 a.m. CDT on Thursday, May 16, 2002, through the website www.amctheatres.com. Listeners can also access the call by dialing 800/307-8182. A replay of the call will be available on the website through Thursday, May 30.

Any forward-looking statements contained in this release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements included herein as a result of a number of factors, including among others the Company's ability to enter into various financing programs, the performance of films licensed by the Company, competition, construction delays, the ability to open or close theatres and screens as currently planned, political, social and economic conditions, demographic changes, increases in demand for real estate, changes in real estate, zoning and tax laws and unforeseen changes in operating requirements.

                        AMC ENTERTAINMENT INC.
                           FINANCIAL SUMMARY
                 (In thousands, except per-share data)

                          Thirteen Weeks Ended Fifty-two Weeks Ended
                          -------------------- ---------------------
                          March 28,  March 29,  March 28,  March 29,
                            2002       2001       2002       2001
                            ----       ----       ----       ----
Statement of Operations Data:
Admissions                $231,077   $197,808   $901,566   $811,068
Concessions                 90,581     79,091    359,042    334,224
Other theatre                7,612      4,897     39,130     26,052
Other                        9,297      7,757     41,768     43,457
                           -------    -------    -------    -------
Total revenues             338,567    289,553  1,341,506  1,214,801

Film exhibition costs      120,471    101,474    487,577    432,351
Concession costs            11,807      8,023     45,756     46,455
Theatre operating expense   83,995     73,754    327,665    300,773
Rent                        60,470     58,647    236,829    229,314
Other                       10,962      9,964     45,264     42,610
General and administrative  12,439     10,510     37,798     32,499
Preopening expense             357      1,011      4,345      3,808
Theatre and other closure
 expense                       300     10,342      2,124     24,169
Depreciation and
 amortization               25,872     26,500     99,742    105,260
Impairment of long-lived
 assets                      4,668     64,963      4,668     68,776
Disposition of assets            5      1,131     (1,821)      (664)
                           -------    -------    -------    -------
Total costs and expenses   331,346    366,319  1,289,947  1,285,351
                           -------    -------    -------    -------

Operating income (loss)      7,221    (76,766)    51,559    (70,550)
Other expense (income)           -          -      3,754     (9,996)
Interest expense            17,060     18,930     60,760     77,000
Investment income           (1,244)    (1,530)    (2,087)    (1,728)
                           -------    -------    -------    -------
Loss before income taxes and
 cumulative effect of an
 accounting change          (8,595)   (94,166)   (10,868)  (135,826)
Income tax provision         1,000    (30,600)       600    (45,700)
                           -------    -------    -------    -------
Loss before cumulative effect
 of an accounting change    (9,595)   (63,566)   (11,468)   (90,126)
Cumulative effect of an accounting
 change, net of taxes            -          -          -    (15,760)
                           -------    -------    -------    -------

Net loss                   $(9,595)  $(63,566)  $(11,468) $(105,886)
                           =======    =======    =======    =======

Preferred dividends          8,834          -     29,421          -
                           -------    -------    -------    -------

Net loss for common
 shares                   $(18,429)  $(63,566)  $(40,889) $(105,886)
                           =======    =======    =======    =======
Loss per common share before
 cumulative effect of an
 accounting change:
  Basic                     $(0.76)(1) $(2.71)(1) $(1.73)(1) $(3.84)(1)
                           =======    =======    =======    =======
  Diluted                   $(0.76)(1) $(2.71)(1) $(1.73)(1) $(3.84)(1)
                           =======    =======    =======    =======
Net loss per common share:
  Basic                    $ (0.76)   $ (2.71)   $ (1.73)   $ (4.51)
                           =======    =======    =======    =======
  Diluted                  $ (0.76)   $ (2.71)   $ (1.73)   $ (4.51)
                           =======    =======    =======    =======
Average shares outstanding:
  Basic                     24,369     23,469     23,692     23,469
                           =======    =======    =======    =======
  Diluted                   24,369     23,469     23,692     23,469
                           =======    =======    =======    =======

Other Financial Data:
 Adjusted EBITDA(2)        $38,423    $27,181   $160,617   $133,416
 Capital expenditures,
  net(3)                    30,073     20,519     77,274    101,064

Other Data:
 Screen additions               16         30        146        115
 Screen acquisitions            68          -         68          -
 Screen dispositions            24         66         86        250
 Average screens             2,839      2,776      2,804      2,821
 Attendance (in thousands)  40,459     36,267    158,884    151,171
 Number of screens operated                        2,899      2,771
 Number of theatres operated                         181        180
 Screens per theatre circuit wide                   16.0       15.4


                                                March 28,  March 29,
                                                  2002       2001
                                                  ----       ----
Balance Sheet Data:
 Cash and equivalents                           $219,432    $34,075
 Corporate borrowings                            596,540    694,172
 Capital and financing lease obligations          57,056     56,684
 Net debt(4)                                     434,164    716,781

(1) Fiscal 2002 includes a $4,668 impairment charge and $3,754 of

one-time transaction expenses incurred in connection with the

issuance of Preferred Stock which increased basic and diluted loss

per common share before cumulative effect of an accounting change

by $0.12 for the thirteen weeks ended March 28, 2002, and $0.28

for the fifty-two weeks ended March 28, 2002. Fiscal 2001 includes

a $68,776 impairment charge offset by one-time other income of

$7,379 related to the extinguishment of gift certificate

liabilities which increased basic and diluted loss per common

share before cumulative effect of an accounting change by $1.63

for the thirteen weeks ended March 29, 2001, and $1.54 for the

fifty-two weeks ended March 29, 2001.

(2) Represents loss before cumulative effect of an accounting change

plus interest, income taxes, depreciation and amortization and

adjusted for preopening expense, theatre and other closure

expense, impairment of long-lived assets, (gain) loss on

disposition of assets and equity in earnings of unconsolidated

affiliates and excludes one-time other income of $7,379 (in fiscal

2001) related to an accounting change and one-time other expense

of $3,754 (in fiscal 2002) incurred in connection with the

issuance of Preferred Stock. We have included Adjusted EBITDA

because we believe that Adjusted EBITDA provides investors with

additional information for estimating our value and evaluating our

ability to service debt. We believe that Adjusted EBITDA is a

financial measure commonly used in our industry and should not be

construed as an alternative to operating income (as determined in

accordance with GAAP). Adjusted EBITDA as determined by us may not

be comparable to EBITDA as reported by other companies. In

addition, Adjusted EBITDA is not intended to represent cash flow

(as determined in accordance with GAAP) and does not represent the

measure of cash available for discretionary uses.

(3) Represents capital expenditures less proceeds from sale and

leaseback transactions.

(4) Represents corporate borrowings and capital and financing lease

obligations less cash and equivalents.