Carmike Cinemas Reports Second Quarter 2006 Results; Second Quarter Revenues Increase 8.8%; Theater Level Cash Flow Increases 30.8%.

COLUMBUS, Ga. -- Carmike Cinemas, Inc. (NASDAQ: CKEC) today reported results for its second quarter ended June 30, 2006.

Second Quarter Operating Results

Total revenue for the quarter ended June 30, 2006 increased 8.8% to $130.3 million from $119.8 million for the quarter ended June 30, 2005. Admissions revenue increased 7.7% to $84.9 million for the quarter ended June 30, 2006 from $78.8 million for the quarter ended June 30, 2005. Concessions and other revenue increased 10.9% to $45.5 million for the second quarter of 2006 from $41.0 million for the second quarter of 2005.

Operating income increased 4.3% to $7.8 million for the second quarter of 2006 from $7.5 million in the same period in the prior year. Carmike's general and administrative expenses during the second quarter of 2006 were negatively impacted by $4.0 million for increased professional fees including those related to the restatement of the Company's financial statements. Theatre level cash flow increased 30.8% to $27.8 million for the second quarter of 2006 from $21.2 million for the same period in 2005. Interest expense was $11.6 million for the second quarter of 2006 versus $8.3 million in the prior year period, due to higher interest rates and an increase in average debt outstanding.

"I am extremely pleased that we are now in full compliance with all of our SEC and NASDAQ filing requirements and we appreciate your patience," stated Michael W. Patrick, Carmike's Chairman, President and CEO. "Our business fundamentals are strong as we have benefited from a robust slate of summer movies combined with our efficient operating structure. We remain confident that our unique strategy of focusing on small-to-midsize non-urban markets will continue to generate significant cash flow. We are also excited about Carmike's growth prospects from the implementation of digital technology and select acquisition opportunities."

Net loss was $6.5 million, or $0.53 per diluted share, for the quarter ended June 30, 2006, compared to a net loss of $2.4 million, or $0.19 per diluted share, for the quarter ended June 30, 2005. The Company recorded stock-based compensation expense of $1.0 million in the second quarter of 2006.

Carmike's results for the first six months of 2006 include results attributable to GKC Theatres. The results for the first six months of 2005 include results attributable to GKC Theatres from the date of acquisition, May 19, 2005. The acquisition added 30 theatres with 263 screens in Illinois, Indiana, Michigan and Wisconsin.

For the six-month period ended June 30, 2006 total revenues increased 9.5% to $242.1 million from $221.0 million for the same period in 2005. Operating income was $11.7 million for the first six months of 2006, compared to $13.4 million for the same period in 2005. Carmike's general and administrative expenses during the first six months of 2006 were negatively impacted by $4.7 million for increased professional fees including those related to the restatement of the Company's financial statements. Theatre level cash flow increased 20.8% to $47.5 million for the six months ended June 30, 2006 from $39.4 million for the same period in 2005. Net loss was $12.7 million, or $1.03 per diluted share, for the six months ended June 30, 2006, compared to a net loss of $2.1 million, or $0.17 per diluted share, for the same period in 2005.

At June 30, 2006, Carmike's cash and cash equivalent balance was $20.6 million versus $23.6 million at December 31, 2005. Carmike had net debt of $416.5 million at June 30, 2006, compared to net debt of $408.4 million at December 31, 2005. At June 30, 2006, Carmike had no borrowings outstanding under its five-year $50 million revolving credit facility. As previously disclosed, during the second quarter of 2006 Carmike borrowed $156 million, pursuant to a delayed-draw term loan commitment (maturing on May 19, 2012) under its senior secured credit facility, in order to repurchase its $150 million outstanding senior subordinated notes. These notes are no longer outstanding and the related indenture is no longer in effect.

Conference Call Information

Carmike will hold its second quarter 2006 earnings conference call on Monday, August 28, 2006, at 4:30 p.m. (ET) to discuss the information contained in this release. The call can be accessed by dialing 1-877-502-9272, or 1-913-981-5581 for international participants. A replay will be available starting at 7:30 p.m. (ET) on August 28, 2006 and can be accessed by dialing 1-888-203-1112, or for international callers, 1-719-457-0820. The passcode for the replay is 4665123. The replay will be available until September 4, 2006.

This call will also be webcast and can be accessed at Carmike's website, www.carmike.com at the Investor Relations link. The on-line replay will be available for a limited time immediately following the call.

Supplemental Financial Measures

Total debt, net debt and theatre level cash flows are supplemental non-GAAP financial measures used by Carmike to evaluate its operating performance. Total debt is defined as the sum of current maturities of long-term debt, capital leases and long-term financing obligations, long-term debt (less current maturities) and capital leases and long-term financing obligations (less current maturities). Net debt is defined as total debt less cash and cash equivalents. Theatre level cash flow is a supplemental non-GAAP financial measure used by Carmike to evaluate its operating performance. Carmike defines theatre level cash flow as operating income plus general and administrative expenses, depreciation and amortization, minus gain on sales of property and equipment. Carmike believes that theatre level cash flow is an important supplemental measure of operating performance for a motion picture exhibitor's operations because it provides a measure of the core operations, rather than factoring in items such as general and administrative expenses and depreciation and amortization among others. In addition, Carmike believes that theatre level cash flow, as defined, is a widely accepted measure of comparative operating performance in the motion picture exhibition industry. A reconciliation of theatre level cash flow to operating income for the second quarter and six-months ended June 30, 2006 and 2005, as well as a schedule of total debt and net debt is included in the tables accompanying this press release.

About Carmike Cinemas

Carmike Cinemas, Inc. is a premiere motion picture exhibitor in the United States with 295 theatres and 2,455 screens in 37 states, as of June 30, 2006. Carmike's focus for its theatre locations is small to mid-sized communities with populations of fewer than 100,000.

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words, "believes," "expects," "anticipates," "plans," "estimates" or similar expressions. Forward-looking statements are only predictions and are not guarantees of performance. These statements are based on beliefs and assumptions of management, which in turn are based on currently available information. The forward-looking statements also involve risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond our ability to control or predict. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include:

--our ability to comply with covenants contained in our senior secured credit agreement;

--our ability to maintain our Nasdaq listing;

--our ability to operate at expected levels of cash flow;

--the availability of suitable motion pictures for exhibition in our markets;

--competition in our markets;

--competition with other forms of entertainment;

--the effect of our leverage on our financial condition; and

--other factors, including the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2005 under the caption "Risk Factors."

We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
CARMIKE CINEMAS, INC. and SUBSIDIARIES
(in thousands, except per share data)


                             Three Months Ended    Six Months Ended
                                  June 30,             June 30,
                             ------------------- --------------------
                                           2005                 2005
                                 2006  (restated)     2006  (restated)
                              -------- ----------  -------- ----------
Revenues
 Admissions                  $ 84,874   $ 78,780  $157,439   $145,832
 Concessions and other         45,455     41,005    84,635     75,173
                              --------   --------  --------   --------
                              130,329    119,785   242,074    221,005
Costs and Expenses
 Film exhibition costs         47,833     46,920    85,108     82,302
 Concession costs               5,251      4,447     9,341      8,043
 Other theatre operating
  costs                        49,488     47,203   100,096     91,308
 General and administrative
  expenses                      9,752      4,354    15,533      8,342
 Depreciation and
  amortization                 10,476      9,789    20,768     18,030
 Gain on sales of property
  and equipment                  (293)      (424)     (437)      (426)
                              --------   --------  --------   --------
                              122,507    112,289   230,409    207,599
                              --------   --------  --------   --------
Operating income                7,822      7,496    11,665     13,406
Other expenses
 Interest expense              11,646      8,332    22,259     16,067
 Loss on extinguishment of
  debt                          4,811      5,795     4,811      5,795
                              --------   --------  --------   --------
Loss before reorganization
 costs and income taxes        (8,635)    (6,631)  (15,405)    (8,456)
 Reorganization benefit
  (expense)                        --         (3)       --      2,388
                              --------   --------  --------   --------
Loss before income taxes       (8,635)    (6,634)  (15,405)    (6,068)
 Income tax benefit            (2,114)    (4,255)   (2,710)    (4,013)
                              --------   --------  --------   --------
Net loss                     $ (6,521)  $ (2,379) $(12,695)  $ (2,055)
                              ========   ========  ========   ========
Weighted average shares
 outstanding:
 Basic                         12,402     12,212    12,370     12,175
                              ========   ========  ========   ========
 Diluted                       12,402     12,212    12,370     12,175
                              ========   ========  ========   ========
Net loss per common share:
 Basic                       $  (0.53)  $  (0.19) $  (1.03)  $  (0.17)
                              ========   ========  ========   ========
 Diluted                     $  (0.53)  $  (0.19) $  (1.03)  $  (0.17)
                              ========   ========  ========   ========
 Dividend declared per
  common share.              $     --   $   0.18  $   0.18   $   0.35
                              ========   ========  ========   ========


TOTAL DEBT AND NET DEBT
CARMIKE CINEMAS, INC. and SUBSIDIARIES
(in thousands)

                                                 June 30, December 31,
                                                   2006       2005
                                                ----------- ---------
                                                (unaudited)
Current maturities of long-term debt,
 capital leases and long-term financing
 obligations                                      $  3,215  $  2,435
Long-term debt, less current maturities            318,159   313,774
Capital leases and long-term financing
 obligations, less current maturities              115,760   115,809
                                                   --------  --------
Total debt                                         437,134   432,018
Less cash and cash equivalents                     (20,586)  (23,609)
                                                   --------  --------
Net debt                                          $416,548  $408,409
                                                   ========  ========


THEATRE LEVEL CASH FLOW (UNAUDITED)
CARMIKE CINEMAS, INC. and SUBSIDIARIES
(in thousands)

                               Three Months Ended  Six Months Ended
                                   June 30,            June 30,
                              ------------------- -------------------
                                 2006       2005     2006       2005
                               -------    -------  -------    -------
                                       (restated)          (restated)
Operating Income              $ 7,822    $ 7,496  $11,665    $13,406
Gain on sales of property and
 equipment                       (293)      (424)    (437)      (426)
General and administrative
 expenses                       9,752      4,354   15,533      8,342
Depreciation and amortization  10,476      9,789   20,768     18,030
                               -------    -------  -------    -------
Theatre level cash flow       $27,757    $21,215  $47,529    $39,352
                               =======    =======  =======    =======