AMC Entertainment Inc. Reports Record Revenues and Adjusted EBITDA in Third Quarter of FY2002.

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--Jan. 22, 2002

AMC Entertainment Inc., one of the world's leading theatrical exhibition companies, today reported revenues of $316 million for the third quarter of fiscal year 2002, ended Dec. 27, 2001.

The revenues, up 5 percent from $302 million in last year's quarter, represent a new Company record for the third quarter.

Adjusted EBITDA (as defined in the attached Financial Summary) for the third quarter was $33.2 million, a 3-percent increase over Adjusted EBITDA of $32.3 million in the year-ago quarter, which also represents a new Company record for the third quarter.

"Our record results and our continued growth in adjusted EBITDA reflect the strength of AMC's industry-leading portfolio of high-performing theatres as well as the success of the strategic initiatives we have implemented over the past years," said Peter Brown, chairman and chief executive officer.

The net loss for the third quarter was $9.0 million, or $16.8 million for common shares after preferred dividends, compared to a net loss of $10.0 million in the same quarter last year. The third quarter's net loss stood at 72 cents per common share, compared to a net loss of 42 cents per share in the third quarter last year.

For fiscal 2002 to date, AMC posted revenues of $1.0 billion, an increase of 8 percent over $925 million in the first 39 weeks of fiscal 2001. Adjusted EBITDA for the year to date stood at $122 million, up 15 percent from $106 million in the year-ago period.

For the fiscal year to date, AMC reported a net loss of $1.9 million, or a net loss for common shares of $22.5 million (96 cents per common share) after preferred dividends. That compares to a net loss of $42.3 million ($1.80 per common share) for the first three quarters last year, after a 67 cents per share 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 176 theatres with 2,820 screens in the United States, Canada, France, Hong Kong, Japan, Portugal, Spain and Sweden. 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 8:00 a.m. CST on Wednesday, Jan. 23, 2002, through the website www.amctheatres.com. Listeners can also access the call by dialing 877/307-8182. A replay of the call will be available on the website through Wednesday, February 6, 2002.

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   Thirty-Nine Weeks Ended
                      --------------------   -----------------------
                       Dec. 27,  Dec. 28,     Dec. 27,   Dec. 28,
                         2001      2000         2001       2000
                         ----      ----         ----       ----
Statement of Operations
 Data:
Admissions             $212,373  $199,165     $670,489   $613,260
Concessions              83,449    82,946      268,461    255,133
Other theatre             7,907     6,177       31,518     21,155
Other                    12,582    14,114       32,471     35,700
                        -------   -------      -------    -------
Total revenues          316,311   302,402    1,002,939    925,248
Film exhibition costs   114,989   106,866      367,106    330,877
Concession costs          9,831    12,077       33,949     38,432
Theatre operating
 expense                 79,192    74,863      243,670    227,019
Rent                     58,626    56,826      176,359    170,667
Other                    11,845    11,429       34,302     32,646
General and adminis-
 trative                  8,666     8,004       25,359     21,989
Preopening expense        2,182       314        3,988      2,797
Theatre and other closure
 expense                  1,736     1,421        1,824     13,827
Depreciation and
 amortization            26,300    26,465       73,870     78,760
Impairment of long-lived
 assets                       -         -            -      3,813
(Gain) loss on disposition
 of assets                   16      (160)      (1,826)    (1,795)
                        -------   -------      -------    -------
Total costs and
 expenses               313,383   298,105      958,601    919,032
                        -------   -------      -------    -------

Operating income          2,928     4,297       44,338      6,216
Other expense (income)        -         -        3,754     (9,996)
Interest expense         13,990    19,854       43,700     58,070
Investment (income) loss   (262)      407         (843)      (198)
                        -------   -------      -------    -------
Loss before income taxes
 and cumulative effect of
 an accounting change   (10,800)  (15,964)      (2,273)   (41,660)
Income tax provision     (1,800)   (6,000)        (400)   (15,100)
                        -------   -------      -------    -------
Loss before cumulative
 effect of an accounting
 change                  (9,000)   (9,964)      (1,873)   (26,560)
Cumulative effect of an
 accounting change,
 net of taxes                 -         -            -    (15,760)
                        -------   -------      -------    -------

Net loss               $ (9,000) $ (9,964)    $ (1,873)  $(42,320)
                        =======   =======      =======    =======

Preferred dividends       7,790         -       20,587          -
                        -------   -------      -------    -------

Net loss for common
 shares                $(16,790) $ (9,964)    $(22,460)  $(42,320)
                        =======   =======      =======    =======
Loss per common share
 before cumulative effect
 of an accounting change:
  Basic                $  (0.72) $  (0.42)    $  (0.96)  $  (1.13)
                        =======   =======      =======    =======
  Diluted              $  (0.72) $  (0.42)    $  (0.96)  $  (1.13)
                        =======   =======      =======    =======
Net loss per common share:
  Basic                $  (0.72) $  (0.42)    $  (0.96)  $  (1.80)
                        =======   =======      =======    =======
  Diluted              $  (0.72) $  (0.42)    $  (0.96)  $  (1.80)
                        =======   =======      =======    =======
Average shares outstanding:
  Basic                  23,469    23,469       23,469     23,469
                        =======   =======      =======    =======
  Diluted                23,469    23,469       23,469     23,469
                        =======   =======      =======    =======

Other Financial Data:
 Adjusted EBITDA(a)    $ 33,162  $ 32,337     $122,194   $106,235
 Capital expenditures,
  net(b)                 10,397    28,742       47,200     80,545
Other Data:
 Screen additions            70        20          130         85
 Screen dispositions          6        23           62        184
 Average screens          2,799     2,757        2,790      2,833
 Attendance (in
  thousands)             36,878    37,245      118,425    114,903
 Number of screens
  operated                                       2,836      2,804
 Number of theatres operated                       177        186
 Screens per theatre circuit wide                 16.0       15.1


                                              Dec. 27,   Dec. 28,
                                                2001       2000
                                                ----       ----
Balance Sheet Data:
 Cash and equivalents                         $ 48,428   $ 65,081
 Corporate borrowings                          486,226    699,155
 Capital and financing lease obligations        57,699     57,875
 Net debt(c)                                   495,497    691,949


      (a) 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.
      (b) Represents capital expenditures less proceeds from sale and
leaseback transactions.
      (c) Represents corporate borrowings and capital and financing
lease obligations less cash and equivalents.