CinemaStar Luxury Theaters announces third quarter financial results; San Diego chain posts second consecutive quarterly profit.

SAN DIEGO--(BUSINESS WIRE)--Feb. 12, 1996--CinemaStar Luxury Theaters (NASDAQ:LUXY) Monday announced financial results for the three months and nine months ended Dec. 31, 1995.

Total revenue for the three months was $2,992,890, compared with revenue of $2,541,611 for the same period in the previous year. Net income for the three months was $64,814, or 1 cent per share, compared with a net loss of $535,822, or 11 cents per share in the same period of last year.

Total revenue for the nine months ended Dec. 31, 1995 was $8,891,724, compared with revenue of $8,070,103 for the same period last year. The net loss for the nine months was $95,575, or 2 cents per share, compared with a loss of $1,190,753, or 23 cents per share, in the first nine months of the previous fiscal year.

Total expenses for the three and nine month periods ended Dec. 31, 1995 were $2,837,156, and $8,776,055, respectively, compared with total expenses for the similar periods in the previous year of $2,895,494, and $8,843,013, respectively.

"The results for the quarter show that we can continue to grow our business while holding down costs," said CinemaStar Luxury Theater President John Ellison Jr. "Over the next six months we will more than double our number of screens, and we are committed to seeing that the new theaters have a positive impact in their markets, as well as on the company's operations."

Ellison noted that the revenue and expense results include three months of operations at the Chula Vista 6 Theater that CinemaStar acquired from United Artists in August 1995.

The company now has 30 screens in operation of San Diego County, with further expansion already underway, said Ellison. On March 16, CinemaStar will open its largest theater, a 14-screen Ultraplex in Riverside, Calif., at the Mission Grove Plaza. During the summer, two ten-plexes are scheduled to open -- one at University Village adjacent to the U.C. Riverside campus, and another in Buena Park, Calif. -- and five screens will be added to the existing Mission Marketplace 8 Theater in Oceanside, Calif.

CinemaStar's complexes incorporate state-of-the-art technology, including high quality projection and audio capabilities, such as advanced digital sound and LucasFilm's THX Sound environment system, along with luxurious amenities such as high-back, reclining seats and extra-wide aisles between seat rows. The company completed an initial public offering of common stock and warrants in February 1995.

CONTACT: CinemaStar Luxury Theaters

Randy Siville, 619/630-2011

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McQUERTERGROUP

Don Markley, 619/450-0030