Cineplex Odeon Corporation Announces Plans for Multiplex Cinema in Budapest, Hungary 6-Screen Facility Offers Platform for Overseas Expansion.

TORONTO--(BUSINESS WIRE)--Nov. 8, 1996-- CINEPLEX ODEON CORPO(TSE, NASDAQ CPX.) Cineplex Odeon Corporation today announced plans for its first overseas multiplex theatre, which will be located in Budapest, Hungary. The project is expected to be the first North American-led multiplex development in Hungary. Cineplex Odeon's Polus Center cinema, which will feature six screens, digital theatre sound and a Cinecafe, will officially open on December 12, 1996, with several screens opening to the public prior to this date. The opening of the Polus Center will set the stage for the company's further growth throughout Europe and internationally.

Allen Karp, President and Chief Executive Officer of Cineplex Odeon, stated, "This dynamic new project is the first expression of our recently stated objective to expand internationally, and, in particular, capitalize on the underscreened moviegoing countries outside of North America and especially the 'New Europe'. We have chosen Hungary for our initial overseas venture in consideration of its burgeoning economy, stable government and sizeable population, and because it is strategically located at the heart of Eastern Europe -- a region benefiting from dramatically increased foreign investment and a revitalized national appetite for affordable leisure activities. More importantly, Hungary suffers from an underdevelopment of modern multiplexes.

"We have chosen an ideal site in that we have a strong strategic alliance with solid financial and development partners with whom we are well acquainted, as well as native-born associates who offer us the benefit of their insight into this market and its culture."

"The Polus Center project is the first of several locations being considered by Cineplex Odeon in this market over the next several years and will serve as a platform for future expansion beyond Hungary into such nearby markets as Germany, Austria, Poland, Italy and the Czech Republic."

The Polus Center cinema will be located in the northeastern Budapest district of Ujpalota and is part of a 50,000 square meter (538,200 square feet) North American-style, destination shopping mall that features major retail tenants from Hungary, Europe and North America. The Polus Center will also contain a 3,500 square meter (37,500 square feet) indoor entertainment centre featuring West World (an authentic turn-of-the-century Wild West town), an indoor skating rink, and an all-encompassing mini-theme park and location-based entertainment centre. The Polus Center will offer Saturday afternoon and Sunday shopping hours, which are currently not available throughout much of Hungary.

The easily accessible Center, which offers sizeable parking accommodations, is situated adjacent to the M3 highway, within a high density residential area, and is expected to draw from a market area reaching 3 million citizens in Budapest and the surrounding areas. Hungary's total population exceeds 10 million and the country attracts roughly 38 million tourists annually.

Local and regional exhibitors operate only a small number of multiplexes in the country and very few of these venues offer digital sound, plush seating, convenient cupholders on seatbacks, air conditioning and other modern amenities valued by North American moviegoers.

Cineplex Odeon's Polus Center cinema will enhance the moviegoing experience for local film lovers by providing state-of-the-art film presentation and Dolby Digital Sound in all auditoriums, DTS in 2 auditoriums, an expansive, 54-foot curved screen in one auditorium, luxurious, high-back seating and a cafe featuring specialty coffees and other quality beverages. All auditoriums will be accessible to handicapped patrons and include chairs with transfer arms - a swing-away design that allows wheelchair patrons to sit comfortably on aisle seats.

Trizec Corporation, a Canadian-based corporation, is North America's largest owner/ operator of shopping centres, and is the Polus Center's management consultant. Also participating in the project is Andrew Sarlos, a Canadian financier active in development projects throughout Hungary; his collaboration with billionaire investor and Hungarian ex-patriate George Soros in the $130 million First Hungary Fund, a venture capital fund, has fueled a number of successful enterprises in the country. The Polus Center is the first of many similar centres being developed and built in Central Europe by the landlord, Granit-Polus Ltd., whose principal owner, Sandor Demjan, is one of Hungary's most successful entrepreneurs. Cineplex Odeon has an option to operate cinemas in future projects constructed by this group, including nine sites currently in various stages of development.

Cineplex Odeon is an entertainment corporation which owns and operates motion picture cinemas and related food service concessions in 6 Canadian provinces, 12 U.S. states and the District of Columbia. With headquarters in Toronto, Cineplex Odeon is one of the largest exhibitors in North America and the largest in Canada, with 1,463 screens in 310 locations. The Corporation's shares are traded on the New York Stock Exchange and the Toronto Stock Exchange.

CONTACT: Cineplex Odeon Corporation

Howard Lichtman, 416/323-6634