Cinemark USA, Inc. Reports First Quarter Results.

PLANO, Texas--(BUSINESS WIRE)--May 10, 1999--

Cinemark USA, Inc. today reported its revenues for the first quarter ended March 31, 1999, increased 20.2% to $149.3 million from $124.2 million in the same period last year.

The Company posted a net loss of $3.1 million for the first quarter of 1999 compared to net income of $7.1 million for the first quarter of 1998. The net loss in the first quarter included a pre-tax charge of $3.4 million for the write off of the unamortized organization costs resulting from a change in accounting principles due to the adoption of Statement of Position (SOP) 98-5.

Operating income before non-cash expenditures (EBITDA), a key measure of the Company's cash flow, decreased 12.1% to $24.0 million for the first quarter of 1999 versus $27.2 million for the first quarter of 1998. Included in EBITDA for the first quarter ended March 31, 1999, was $3.7 million of rent expense attributed to the sale and leaseback of 13 theatres with 205 screens, compared to $1.6 million of rent expense in the same period last year.

"While Titanic ignited movie going across the country in early 1998, the film product in the early part of this year did not have broad appeal resulting in a disappointing quarter for the Company," said Lee Roy Mitchell, Cinemark's Chief Executive Officer. "Throughout the remainder of 1999, we should benefit from our domestic and international new build development program as well as a strong film line up featuring the much anticipated Star Wars prequel, `Episode I: Phantom Menace.'"

Cinemark USA, Inc., headquartered in Plano, Texas, is a world leader in the motion picture exhibition industry, operating 2,432 screens in the United States, Mexico, Canada, Argentina, Brazil, Central America, Chile, Ecuador, and Peru. -0-

                          CINEMARK USA, INC.

                           FINANCIAL SUMMARY

                     For the Fiscal First Quarter
                Ended March 31, 1999 and March 31, 1998
                            (In Thousands)


                                       First                First
                                   Quarter Ended        Quarter Ended
                                  March 31, 1999       March 31, 1998

Total Revenues                       $149,268             $124,222
Operating Income /a                    11,675               18,926
EBITDA /b                              23,971               27,195
Income Before Cumulative Effect
   of an Accounting Change               (170)               7,141
Net Income/(Loss)                      (3,138)               7,141


/a   Total revenues less cost of operations, depreciation and
     amortization and general and administrative expenses.

/b   Represents operating income plus non-cash items included in
     operating income.