Cinemark USA, Inc. Reports Results for First Quarter 2004: Revenues Increase 16 Percent, EBITDA Increases 22 Percent.

Entertainment Editors/Business Editors

PLANO, Texas--(BUSINESS WIRE)--May 14, 2004

Cinemark USA, Inc., one of the leaders in the motion picture exhibition industry, today reported results for the three months ended March 31, 2004.

Cinemark USA, Inc.'s revenues for the three months ended March 31, 2004, increased 16.1% to $235.1 million from $202.5 million for the three months ended March 31, 2003. The increase was primarily related to a 10.9% increase in attendance combined with a 5.7% increase in average ticket price. The Company's operating income for the three months ended March 31, 2004, was $32.9 million compared with operating income of $25.1 million for the three months ended March 31, 2003. Earnings before interest, taxes, depreciation, amortization and other non-cash expenditures ("Adjusted EBITDA") for the three months ended March 31, 2004, increased 22.4% to $50.9 million from $41.6 million for the three months ended March 31, 2003. The Company's Adjusted EBITDA margin was 21.7% for the three months ended March 31, 2004. Net income for the three months ended March 31, 2004, increased to $9.9 million from $5.5 million for the three months ended March 31, 2003.

Cinemark USA, Inc. continues to be a leader in the development of stadium seating multiplex theatres. During the three months ended March 31, 2004, the Company opened three new theatres with a total of 33 screens, bringing its aggregate screen count to 3,175 in the United States, Canada, Mexico, Argentina, Brazil, Chile, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Colombia and the United Kingdom. As of March 31, 2004, the Company had signed commitments to open 14 new theatres with 143 screens and add four screens to existing theatres by the end of 2004. The Company also has signed commitments to open eleven new theatres with 107 screens subsequent to 2004.

The Company intends that this press release be governed by the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995 (the "PSLR Act") with respect to statements that may be deemed to be forward-looking statements under the PSLR Act. Such forward-looking statements may include, but are not limited to, the Company and any of its subsidiaries' long-term theatre strategy. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors.

The Company, headquartered in Plano, Texas, has a website at www.cinemark.com where customers can view showtimes and purchase tickets.

                          Cinemark USA, Inc.
                   Financial and Operating Summary
                      (unaudited, in thousands)

                                                Three months ended
                                                    March 31,
                                               2004          2003
                                           ------------- -------------
Statement of Operations data (1):
  Theatre revenues                             $235,112      $202,473

  Film rentals and advertising                   78,972        66,878
  Concession supplies                            12,113         9,787
  Facility lease expense                         31,088        28,450
  Other theatre operating expenses               50,897        47,397
  General and administrative expenses            11,800         9,440
  Depreciation, amortization and asset
   impairment loss                               17,889        15,996
  Gain on sale of assets and other                 (513)         (616)
                                           ------------- -------------
Total costs and expenses                        202,246       177,332
                                           ------------- -------------

Operating income                                 32,866        25,141

  Interest expense (2)                           12,466        13,879
  Other expense                                     754         1,545
                                           ------------- -------------
Income from continuing operations before
 income taxes                                    19,646         9,717
Income taxes                                      7,949         3,949
                                           ------------- -------------
Income from continuing operations                11,697         5,768
Loss from discontinued operations, net of
 tax benefit                                     (1,763)         (315)
                                           ------------- -------------
Net income                                       $9,934        $5,453
                                           ============= =============

Other Financial Data (1):
  Adjusted EBITDA (3)                           $50,927       $41,597
  Adjusted EBITDA margin                           21.7%         20.5%

Other Operating Data (1):
  Attendance (patrons)                           42,114        37,991

                                               As of        As of
                                             March 31,    December 31,
                                               2004           2003
                                           ------------- -------------

Balance Sheet Data:
  Cash and cash equivalents                     $83,844      $107,319
  Theatre properties and equipment, net         773,285       775,880
  Total assets                                  939,502       960,746
  Long-term debt, including current
   portion                                      656,201       658,431
  Shareholder's equity                           86,928        76,843


            Reconciliation of Adjusted EBITDA (unaudited)
                            (in thousands)

                                                 Three months ended
                                                      March 31,
                                                  2004        2003
                                               ----------- -----------
Net income                                         $9,934      $5,453
  Income taxes                                      7,949       3,949
  Interest expense (2)                             12,466      13,879
  Other expense                                       754       1,545
  Loss from discontinued operations, net of
   tax benefit                                      1,763         315
                                               ----------- -----------
Operating income                                   32,866      25,141
  Add:  Depreciation, amortization and asset
   impairment loss                                 17,889      15,996
  Add:  Gain on sale of assets and other             (513)       (616)
  Add:  Amortized compensation - stock options
   (4)                                                145         274
  Add:  Deferred lease expenses (5)                   540         802
                                               ----------- -----------
Adjusted EBITDA (3)                               $50,927     $41,597
                                               =========== ===========


(1) Statement of operations data, Adjusted EBITDA, and attendance data
    exclude the results of the Company's two United Kingdom theatres
    for all periods presented, as these theatres were classified as
    held for sale at March 31, 2004. The results of operations for
    these two theatres are presented as discontinued operations.
(2) Includes amortization of debt issue costs and excludes capitalized
    interest.
(3) Adjusted EBITDA as calculated in the chart above represents net
    income before income taxes, interest expense, other expense,
    depreciation, amortization and asset impairment loss, gain on sale
    of assets and other, accrued and unpaid compensation expense
    relating to any stock option plans and changes in deferred lease
    expense. Adjusted EBITDA is a non-GAAP financial measure commonly
    used in our industry and should not be construed as an alternative
    to net income or operating income as an indicator of operating
    performance or as an alternative to cash flow provided by
    operating activities as a measure of liquidity (as determined in
    accordance with GAAP). Adjusted EBITDA may not be comparable to
    similarly titled measures reported by other companies. The
    calculation of Adjusted EBITDA is consistent with the definition
    of EBITDA in our senior subordinated notes indentures. We have
    included Adjusted EBITDA because we believe it provides management
    and investors with additional information to measure our
    performance and liquidity, estimate our value and evaluate our
    ability to service debt. In addition, we use Adjusted EBITDA for
    incentive compensation purposes.
(4) Non-cash expense included in general and administrative expenses.
(5) Non-cash expense included in facility lease expense.