HispanicBusiness

MERCHANDISING

--  Recorded record annual concession revenues of $329.3 million and record    annual CPP of $4.63, exceeding the previous records of $294.7 million    (set in 2010) and $4.41 (set in 2011).--  Cineplex's subsidiary New Way Sales ("NWS") acquired Starburst Coin    Machines Inc. ("SCM") in exchange for cash and a 50% interest in NWS,    creating a joint venture named Cineplex Starbust Inc. ("CSI"). CSI    supplies and services all of the games in Cineplex's circuit, while also    supplying equipment to third party arcades, amusement centres, bowling    alleys, amusement parks and theatre circuits, in addition to owning and    operating Playdium, a family entertainment centre located in    Mississauga, Ontario.--  Completed the retrofit of 19 Outtakes locations to Outtakes Backstage    Bistros, which include expanded menu items and a more upscale look and    feel. At December 31, 2012, Cineplex owned and operated 68 Outtakes    locations, of which 21 are Outtakes Backstage Bistros.--  Added four Poptopia locations across the circuit, Cineplex's premium    flavoured popcorn brand. At December 31, 2012, Cineplex owns and    operates six Poptopia locations.--  Continued the roll-out of digital menu boards at concession stands    throughout the circuit, providing a flexible platform to communicate    pricing, promotions and merchandising programs.--  Opened four new XSCAPE entertainment centres in 2012, bringing the total    number of XSCAPE entertainment centres to eight.

--  Media revenues in the second half of 2012 exceeded the same period in    2011 by 6.1%. For the full year, media revenues decreased 7.0% compared    to the record year for media revenues in 2011. The uncertain economic    environment prevalent in the first half of 2012 contributed to the    decrease in media revenues.--  Cineplex Digital Media Inc. ("CDM") continued to grow, with revenues in    2012 exceeding the prior year by 27.7%.--  Expanded Cineplex's exclusive partnership with Timeplay, a leading    developer of mobile-based interactive marketing and content solutions,    across theatres located in the Greater Toronto Area and Vancouver.--  In the 2012 Fall study by the Print Measurement Bureau, Cineplex    Magazine and Le magazine Cineplex earned outstanding readership numbers,    with Cineplex Magazine ranking as the 8th most read magazine in Canada,    with a circulation of over 725,000 copies per issue, and Le magazine    Cineplex reaching circulation of over 200,000 copies per issue.--  Cineplex Magazine and Le magazine Cineplex were added to the Apple    Newsstand at the App Store.

--  The highly successful Metropolitan Opera series continued its strong    performance in Cineplex's theatres.--  Other alternative programming during the year included ethnic films,    live sporting events such as World Wrestling Entertainment, the    Wimbledon tennis finals in 3D and the 100th Grey Cup, the Family    Favourites film series, the Classic Film Series and performances from    the National Theatre Live from London.

--  Launched Apple MAC streaming capability and UltraViolet redemption on    the Cineplex Store. Cineplex is the first retailer in Canada and the    only motion picture exhibitor in the world offering UltraViolet    redemption.--  Cineplex e-gift cards were added to the Cineplex Store.--  Added theatre ticketing, SCENE access and e-gift card access to the    Apple Passbook.--  Integrated the Cineplex Store app on LG smart televisions and set-top    boxes. In addition to LG products, the app is also available on select    Samsung smart televisions and blu-ray players.--  Cineplex.com registered a 56% increase in page views and a 26% increase    in unique visitors during 2012 compared to the prior year, registering    418.2 million page views and 36.5 million unique visitors during the    year.--  The Cineplex mobile brand app ranks 9th in Canada and first among    retailers based on the most recent ComScore MobiLens rankings.