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CINEPLEX ODEON PRESIDENT ALLEN KARP ADDRESSES ANNUAL SHAREHOLDERS MEETING

 TORONTO, June 10 /PRNewswire/ -- Following is a precis of a speech given by Cineplex Odeon Corporation's (NYSE: CPX) President, Allen Karp, at the Corporation's annual shareholders meeting on June 10, 1993.
 PRECIS: ALLEN KARP SPEECH AT CINEPLEX ODEON 1993 ANNUAL MEETING
 In December 1989, I took over the Presidency of Cineplex Odeon Corporation just as the recession was taking over the North American economy. At the time, skeptics predicted that both our Company and our industry would shrink, perhaps eventually fail. Yet three years later, Cineplex Odeon boasts a dramatic turn-around in our financial picture, greater stability than we've had in a long time, a year ahead of us predicted to set record box-office, a robust future characterized by innovative programs and thinking, and the strong, active support of our shareholders, bankers, suppliers and business partners.
 A quick look back at early 1989 sets the stage for examining our striking progress since. At that time, unfocused strategies had taken us into 11 different businesses. We suffered under a $700- million (U.S.) bank debt and huge capital expenditures. Our cash flow was deficient. Our operating costs were high. Our relationships with major stakeholders were strained. And our workforce was dispirited.
 In 1990, we began turning the Corporation around. Some of the specific developments included refocusing the company on its core business -- theatrical exhibition -- selling assets that fell outside this focus, redirecting and minimizing capital expansion, reducing operational expenses, building business strategies at the local level rather than top-down, and reconciling our position with major stakeholders. During 1992, our key focus was on continued debt reduction, cash flow improvement, greater access in Canada to a greater number of commercial films, and the development of new revenue opportunities.
 The results of this clear business planning have been impressive. By the end of 1993, we will have reduced our debt by nearly 50 percent to $385 million (U.S.). We will also have reduced our interest expense by $24 million (U.S.) since 1990. In 1992 we produced positive operating cash flow for the first time since 1988. After adjusting for the sale of 27 theatres, we boosted our audience attendance in 1992 by four percent -- countering a two percent drop in North America as a whole. And we reduced our G&A overhead by 13 percent -- the third year of significant reductions. These positive trends continued into the first quarter of 1993 and put solid numbers behind our description of 1992 as a turning point for Cineplex Odeon.
 While continuing this degree of financial progress, we are realigning our commitment to enhancing the movie-going experience for our patrons in meaningful, tangible ways. On the most basic level, we are strengthening our "CINECHARGE" program, adding cupholders to our theatres, and introducing a film reminder to reduce chatting during films.
 We have initiated a fundamental shift in the mindset of the Corporation. We no longer intend to think of ourselves as only a film exhibitor. We must increase our expertise in retailing the entire movie- going experience. To achieve our major goal for 1993 and 1994 - improved revenues - we are revolutionizing our food service operations.
 Here, the numbers are all on our side. Last year we sold $125 million worth of food to 85 million patrons -- a greater number of consumers than Burger King or Swiss Chalet served in Canada in 1992. Only thirty percent of our patrons made concession purchases, leaving the door open for high-profit gains in this area. If we could increase this usage towards 50 percent -- a level we enjoyed in the past -- we would create dramatic additional concession revenues.
 To capitalize on this tremendous opportunity, we have changed our merchandising and communication strategies. We have computerized our concession stands for greater inventory control and to yield additional marketing information. We are developing product lines which parallel the snack and beverage interests of the aging North American population -- and movie audience. For example, we will begin supplementing our traditional candy, popcorn and Coke concessions with coffees, nuts, self-serve bulk candy, pizza, juices, mineral waters and other healthful alternatives. In theatres where some of these ideas have been tested, patron reception has been outstanding.
 As we move into a new realm of theatre promotion, we anticipate further improvements in the performance of Cineplex Odeon for 1993 and beyond. We are positioned to take advantage of audience attendance increases projected to result from a range of top-quality film releases now through Christmas, and from an improving economy. We look forward to higher revenues, lower operating costs, further debt reductions, increased cash flow, and greater profitability. Unlike many organizations which were shaken during the tenacious recession of the early 1990s, Cineplex Odeon was strengthened and has emerged as a healthier, more dynamic and revitalized corporation.
 My personal thanks go to our employees, our business partners and our shareholders for their commitment to Cineplex Odeon Corporation.
 -0- 6/10/93
 /NOTE TO EDITORS: The full text of the speech is available from Howard Lichtman at 416-323-6634./
 /CONTACT: Howard Lichtman of Cineplex Odeon, 416-323-6634/
 (CPX)


CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU:

SH -- NY033 -- 0608 06/10/93 12:00 EST
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Date:Jun 10, 1993
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