AMC Theatres, Frito-Lay Team up to Launch Movie Snack; 'MovieNachos' Represents First Tortilla Chip Branding Association for Frito-Lay.

KANSAS CITY, Mo. -- Here's a story straight out of Hollywood: Movie theatre nachos are getting an extreme makeover. AMC Theatres (AMEX: AEN) and Frito-Lay, a division of PepsiCo (NYSE: PEP), have joined forces to launch a unique branded product -- MovieNachos(TM) -- available only at AMC's U.S. theatres beginning September 10, 2004. MovieNachos will be the only branded nacho product available in the theatre industry.

The launching of the MovieNachos product brings Frito-Lay's Tostitos brand into AMC Theatres, and represents the first tortilla chip branding association for Frito-Lay in the theatre channel. The product is the latest in several successful concession branding partnerships for AMC Theatres.

MovieNachos will feature Tostitos, one of Frito-Lay's top-selling tortilla chip brands in the U.S., and real cheese, in a customized "grab and go" packaging ideal for theatre guests. The packaging carton has a lid and separate compartments for the cheese and Tostitos chips -- both of which are pre-portioned and sealed to ensure freshness.

"AMC theatres are an ideal venue to extend the reach of the Tostitos brand," said Beth Struckell, Vice President & General Manager, PepsiCo Foodservice. "Frito-Lay actively sought a strong theatre partner, and AMC makes for a perfect match based on their commitment to delivering the best movie experience for their guests."

An extensive marketing campaign represents an unprecedented commitment by AMC to the promotion of this new concession product. Plans include a unique online MovieNachos racecar game at MovieWatcher.com, free in-theatre sampling at select theatres and a digital on-screen advertising spot run in conjunction with National Cinema Network, AMC's cinema advertising subsidiary, which will showcase MovieNachos during the exhibitor's pre-feature programming. In support of the product launch, millions of Tostitos bags will have a dollar-off coupon for MovieNachos redeemed only at AMC theatres.

"AMC's distinctive brand continues to deliver partnerships with other world-class companies such as Frito-Lay," said Rick King, Senior Vice President, Corporate Communications, AMC Entertainment Inc. "MovieNachos is another example of how AMC works to find innovative ways to provide fun, appetizing and high-quality products for our guests."

MovieNachos contains 40 percent more chips and 30 percent more cheese than other standard theatre nachos. The association with Frito-Lay marks the sixth branded food partnership or privately labeled snack food that AMC has introduced in the past year.

Frito-Lay, headquartered in Plano, TX, is the convenient fun foods division of PepsiCo, Inc. that makes some of America's favorite snack brands. As of 2003, all of Frito-Lay's snack chips contain zero grams of trans fat, including Lay's potato chips, Ruffles potato chips, Doritos tortilla chips, Tostitos tortilla chips and Cheetos cheese-flavored snacks. Frito-Lay makes and sells a wide variety of low-fat, reduced-fat and no-fat snacks including Baked Doritos, Baked Lay's, Baked Ruffles, Baked Tostitos, Ruffles Reduced Fat and its Natural line, WOW! line, and Rold Gold pretzels. Cracker Jack snacks, Quaker Chewy granola bars, Quaker Fruit and Oatmeal bars, and Quakes rice snacks are also produced and sold by Frito-Lay.

AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company operates 232 theatres with 3,544 screens in the United States, Canada, France, Hong Kong, Japan, Portugal, Spain 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.