AMC Entertainment Restructures Organization; Moves Expected to Reduce Ongoing Annual General and Administrative Expense by Approximately $20 Million.

KANSAS CITY, Mo.--(BUSINESS WIRE)--Sept. 29, 1999--

AMC Entertainment Inc., one of the world's leading theatrical exhibition companies, today announced the consolidation of its three U.S. divisional operations offices into the Kansas City corporate headquarters. AMC's North American film office will remain in Los Angeles.

More than 100 jobs are impacted, resulting in an ongoing annual General and Administrative expense savings of approximately $20 million. A restructuring charge of approximately $12 million will be taken in the second quarter of fiscal 2000, which ends Sept. 30, 1999, to recognize certain one-time expenses associated with the consolidation, exiting divisional facilities and other costs.

"Consistent with our objective of increasing shareholder value, we are streamlining the organization while staying focused on delivering the best possible moviegoing experience for our patrons," said Peter Brown, chairman and chief executive officer. "This significant reduction in G&A expense, combined with the price increases we have been implementing, will enhance our financial performance and will position the Company for continued industry leadership."

He continued: "The decision to undergo a restructuring of this magnitude impacts many. We are deeply appreciative of our associates' contributions. We find we must update our organizational structure to strengthen the Company's foundation for the future."

AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company operates 215 theatres with 2,792 screens in 23 states, the District of Columbia, Hong Kong, Japan, Portugal, Spain and Canada. 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.

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 but not limited to the Company's ability to enter into various financing programs, competition from other companies, demographic changes, changes in economic climate, increase in demand for real estate, construction delays, the ability to open new theatres and screens as currently planned, changes in real estate, zoning and tax laws, the performance of films licensed by the Company and other risks and uncertainties.