AMC Entertainment Inc. Reports Record Results for Third Quarter of Fiscal 2003.

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--Jan. 22, 2003

AMC Entertainment Inc. (AMEX: AEN), one of the world's leading theatrical exhibition companies, today reported record third quarter revenues and Adjusted EBITDA for the quarter ended Dec. 26, 2002.

Revenues for the third quarter grew to $432 million. On a pro-forma basis, which treats the results from the recent General Cinema and Gulf States acquisitions as if acquired at the beginning of fiscal 2002, revenues increased 8 percent from pro-forma revenues of $402 million in the year-ago quarter. Not considering pro-forma impacts, third quarter revenues increased 37 percent from $317 million in the same period last year. For fiscal 2003 to date, AMC posted revenues of $1.35 billion, an increase of 7 percent over pro-forma revenues of $1.26 billion in the first 39 weeks of fiscal 2002. Not considering pro-forma impacts, fiscal year-to-date revenues increased 34 percent from $1 billion in the year-ago period.

Adjusted EBITDA (as defined in the attached Financial Summary) of $55 million for the third quarter was up 25 percent from pro-forma Adjusted EBITDA of $44 million for the third quarter last year. Not considering pro-forma impacts, Adjusted EBITDA was up 66 percent from $33 million in the same quarter last year. Adjusted EBITDA for the year to date stood at $178 million, up 13 percent from pro-forma adjusted EBITDA of $157 million in the year-ago period. Not considering pro-forma impacts, fiscal year-to-date Adjusted EBITDA increased 45 percent from $123 million in the same period last year.

"AMC's top-performing theatre portfolio once again combined with solid film product to produce record results," said Peter Brown, chairman and chief executive officer. "The dramatic increase in quarterly and year-to-date Adjusted EBITDA reflects continued successful execution of our strategic growth plan."

Net loss for common shares for the third quarter was $4.9 million, compared to pro-forma net

loss for common shares of $16.4 million in last year's third quarter. Not considering pro-forma impacts, net loss for common shares was $16.8 million in the year-ago quarter. The third quarter's net loss of 14 cents per diluted share compares to pro-forma net loss of 63 cents per diluted share in the third quarter of last year and net loss not considering pro-forma impacts of 72 cents per diluted share in the same period last year.

For the fiscal year to date, AMC reported a net loss for common shares of $23.2 million (64 cents per diluted share). That compares to a pro-forma net loss for common shares of $18.1 million (70 cents per diluted share) and a net loss not considering pro-forma impacts of $22.5 million (96 cents per common share) in the same period last year.

Highlights of the quarter included:

-- Total revenues and Adjusted EBITDA were both third quarter records.

-- Continued delivery of positive Free Cash Flow (After Tax Cash Flow less Capital Expenditures, Net).

-- Continued balance sheet strength.

-- Successful opening of three new high-performance megaplex theatres in Chicago, Dallas/Ft. Worth, and Northern California.

AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company operates 240 theatres with 3,532 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. CST on Wednesday, January 22, 2003, through the website www.amctheatres.com. Listeners can also access the call by dialing [phone], or [phone] for international callers. A replay of the call will be available on the website and by phone through Wednesday, February 5, 2003. The telephone replay can be accessed by calling [phone], or [phone] for international callers, and entering the conference ID number 7460856.

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, domestic and international political, social and economic conditions, demographic changes, increases in demand for real estate, changes in real estate, zoning and tax laws, unforeseen changes in operating requirements, the Company's ability to identify suitable acquisition candidates and to successfully integrate acquisitions into its operations and results of significant litigation.

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


               Thirteen Weeks Ended        Thirty-nine Weeks Ended
            --------------------------- ------------------------------
                        Pro                           Pro
                      Forma(5)                      Forma(5)
             Dec. 26, Dec. 27, Dec. 27,  Dec. 26,   Dec. 27,  Dec. 27,
               2002     2001     2001      2002      2001      2001
            --------- -------- -------- ---------- --------- ---------
Statement
 of
 Operations
 Data:
Admissions  $292,117 $269,741 $212,373   $908,818  $843,939  $670,489
Concessions  109,984  107,833   83,449    356,300   342,776   268,461
Other
 theatre      13,483   11,417    8,349     36,742    41,687    32,433
NCN and
 other        16,836   12,582   12,582     43,284    32,471    32,471
            --------- -------- -------- ---------- --------- ---------
Total
 revenues    432,420  401,573  316,753  1,345,144 1,260,873 1,003,854
Film
 exhibition
 costs       158,458  147,277  114,989    502,516   462,115   367,106
Concession
 costs        13,217   14,186    9,831     44,746    46,614    33,949
Theatre
 operating
 expense     105,672  103,807   79,634    325,374   319,049   244,585
Rent          75,362   71,652   58,626    223,474   215,277   176,359
NCN and
 other        14,017   11,845   11,845     38,369    34,302    34,302
General
 and admini-
 strative     11,058    8,944    8,666     53,509    26,472    25,359
Preopening
 expense       1,630    2,182    2,182      2,878     3,988     3,988
Theatre and
 other
 closure
 expense       4,066    1,736    1,736      5,296     1,824     1,824
Reorgani-
 zation
 items             -    2,433        -          -     4,569         -
Depreci-
 ation and
 amorti-
 zation       31,836   32,347   26,300     93,253    92,011    73,870
Loss (gain)
 on dispo-
 sition of
 assets          390       16       16     (1,032)   (1,826)   (1,826)
            --------- -------- -------- ---------- --------- ---------
Total costs
 and
 expenses    415,706  396,425  313,825  1,288,383 1,204,395   959,516
Other
 expense           -        -        -          -     3,754     3,754
Interest
 expense      18,120   15,721   13,990     56,908    48,893    43,700
Investment
 income         (737)    (262)    (262)    (2,522)     (843)     (843)
            --------- -------- -------- ---------- --------- ---------
Total other
 expense      17,383   15,459   13,728     54,386    51,804    46,611
            --------- -------- -------- ---------- --------- ---------
Earnings
 (loss)
 before
 income
 taxes          (669) (10,311) (10,800)     2,375     4,674    (2,273)
Income tax
 provision    (2,000)  (1,700)  (1,800)     4,700     2,200      (400)
            --------- -------- -------- ---------- --------- ---------
Net earnings
 (loss)       $1,331  $(8,611) $(9,000)   $(2,325)   $2,474   $(1,873)
            ========= ======== ======== ========== ========= =========
Preferred
 dividends     6,250    7,790    7,790     20,897    20,587    20,587
            --------- -------- -------- ---------- --------- ---------
Net loss
 for common
 shares      $(4,919)$(16,401)$(16,790)  $(23,222) $(18,113) $(22,460)
            ========= ======== ======== ========== ========= =========
Net loss
 per share:
    Basic     $(0.14)  $(0.63)  $(0.72)    $(0.64)   $(0.70)   $(0.96)
            ========= ======== ======== ========== ========= =========
    Diluted   $(0.14)  $(0.63)  $(0.72)    $(0.64)   $(0.70)   $(0.96)
            ========= ======== ======== ========== ========= =========
Average
 shares
 out-
 standing:
    Basic     36,302   25,884   23,469     36,294    25,884    23,469
            ========= ======== ======== ========== ========= =========
    Diluted   36,302   25,884   23,469     36,294    25,884    23,469
            ========= ======== ======== ========== ========= =========


                   Thirteen Weeks Ended      Thirty-nine Weeks Ended
                -------------------------- ---------------------------
                           Pro                        Pro
                         Forma(5)                   Forma(5)
                Dec. 26, Dec. 27, Dec. 27, Dec. 26, Dec. 27,  Dec. 27,
                  2002     2001     2001     2002     2001      2001
                -------- -------- -------- -------- -------- ---------
Other Financial
 Data:
  Adjusted
   EBITDA(1)     $55,140  $43,977 $33,277  $177,922 $157,371 $122,521
  After tax cash
   flow(2)        33,671   23,851  17,415   102,982   94,812   72,324
  Capital
   expenditures,
   net(3)          6,786      n/a  10,396    36,571      n/a   47,200
Other Data:
  Screen
   additions          77       82      70        95      142      130
  Screen
   acquisitions        -        -       -       641        -        -
  Screen
   dispositions       13        6       6        71       62       62
  Average
   Screens         3,511    3,487   2,802     3,517    3,472    2,793
  Attendance (in
   thousands)     45,763   46,400  36,878   149,957  147,307  118,425
  Number of
   screens
   operated
   (period end)                               3,564    3,548    2,839
  Number of
   theatres
   operated
   (period end)                                 245      251      177
  Screens per
   theatre
   circuit wide                                14.5     14.1     16.0



                                                     Pro
                                                   Forma(5)
                                         Dec. 26,  March 28, March 28,
Balance Sheet                              2002      2002      2002
 Data:                                  --------- ---------- ---------
  Cash and
   equivalents                           $241,164  $166,603  $219,432
  Corporate
   borrowings                            $668,570  $668,327  $596,540
  Capital and
   financing
   lease
   obligations                           $ 79,993  $ 57,056  $ 57,056
  Net debt(4)                            $507,399  $558,780  $434,164
  Stockholders'
   equity                                $308,477  $291,507  $258,356
  Total shares(6)                          75,840    73,931    71,501

(1)Represents net earnings (loss) plus interest expense, income taxes, depreciation and amortization and adjusted for stock-based and special compensation expense (related primarily to forgiveness of loans to executive officers) of $504 and $20,766 included in general and administrative expense during the thirteen and thirty-nine weeks ended December 26, 2002, respectively, and $115 and $327 included in general and administrative expense during the thirteen and thirty-nine weeks ended December 27, 2001, respectively, preopening expense, theatre and other closure expense, reorganization items, gain on disposition of assets and investment income, and excludes other expense of $3,754 during the thirty-nine weeks ended December 27, 2001 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. We believe that Adjusted EBITDA is a performance measure commonly used in our industry and should not be construed as an alternative to our net earnings (loss) (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), does not represent the measure of cash available for discretionary uses and is not intended to be a measure of liquidity.

(2)Represents net earnings (loss) plus depreciation and amortization and adjusted for the non-cash portion of stock-based and special compensation expense of $504 and $12,054 included in general and administrative expense during the thirteen and thirty-nine weeks ended December 26, 2002, respectively, related primarily to forgiveness of loans to executive officers and $115 and $327 included during the thirteen and thirty-nine weeks ended December 27, 2001, respectively, related to stock-based compensation. We believe that After tax cash flow is a liquidity measure commonly used in our industry and should not be construed as an alternative to cash flow (as determined in accordance with GAAP). After tax cash flow as determined by us may not be comparable to After tax cash flow as reported by other companies.

(3)Represents capital expenditures and net construction project costs less proceeds from sale and leaseback transactions.

(4)Represents corporate borrowings and capital and financing lease obligations less cash and equivalents.

(5)The unaudited pro forma financial information presented above sets forth our historical statements of operations and balance sheet for the periods and at the date indicated and gives effect to the acquisitions of GC Companies, Inc. and Gulf States Theatres as adjusted for the related preliminary purchase price allocations. We believe that the final allocation of purchase price will not differ materially from the preliminary allocation. Such information is presented for comparative purposes only and does not purport to represent what our results of operations would actually have been had these transactions occurred on the date indicated or to project our results of operations for any future period or date. The unaudited pro forma financial information should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 29, 2001, our Quarterly Report on Form 10-Q for the quarterly period ended September 27, 2001 including, in each case, the section "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our reports on Form 8-K filed on March 13, 2002, March 18, 2002 and April 10, 2002.

(6)Represents outstanding shares of Common Stock and Class B Stock, incremental shares issuable under stock options, using the treasury stock method, stock awards and upon the conversion of Series A Convertible Preferred Stock to Common Stock.