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CINEPLEX GALAXY Income Fund Q2 2010

Cineplex Entertainment Largest

Company in

Most Successful and

Motion Picture Theatre Exhibition

Canada

131 Theatres with

1,353 Screens

The

Box Office Market Share - 2009

Empire 12.9%

Other 6.9%

AMC 6.7%

Landmark 2.4%

Guzzo 3.3%

Cineplex Entertainment 67.8%

Market Share of Canadian Box Office Revenues

Exhibition Overview

Business

2008

Cineplex Entertainment

Q2/10 YTD

2009

Industry Box Office

* Source: Motion Picture Theatre Associations of Canada

Canadian Industry*

+6.3%

+13.7%

+12.8%

+8.2%� +4.5%

+3.3%

Films for 2010

July 16th

Inception

July 23rd

Salt

August 13th

The Expendables

December 22nd November 5th

True Grit Due Date

September 24th

Wall Street: Money Never Sleeps

August 13th

Eat, Pray, Love

Paranormal Activity

October 22nd

December 17th

Jackass 3D

October 15th September 24th

Legend of the Guardians The Owls of Ga’Hoole

December 10th

Chronicles of Narnia: The Voyage of the

Dawn Treader

October 22nd

Saw VII - 3D

November 5th

Megamind

November 19th

Harry Potter and the Deathly Hallows: Part

1

December 17th

Yogi Bear TRON Legacy Tangled

November 26th

3D Films for 2010

December 22nd

Gulliver’s Travels

Evolving the Entertainment Experience

Media Merchandising

Exhibition

Media

Merchandising Loyalty

Interactive

Evolving the Entertainment Experience

Alternative Programming

Exhibition

2009 Accomplishments

!   Exhibition -  Record 70 million visitors, (+ 10.2%) -  Record Box Office Revenue, (+ 13.7%) -  Record Box Office per Patron, (+ 3.2%) to $8.30 -  Opened Cineplex Odeon Westmount and VIP Cinemas in London, ON -  Retrofitted four theatres -  Installed 106 digital projectors and 100 RealD 3D systems

!   SCENE -  Increased membership by 735,000 members -  Reached 2 million member milestone – October

2009 Accomplishments

!   Media -  Record revenues of $66.8 million, (+ 9.5%) -  Completed acquisition of Onsite Media Network Inc. and renamed to Cineplex

Digital Media -  Recognized by Marketing Magazine as one of Canada’s Top 10 Media Players of

the Year

!   Merchandising -  Record concession revenues, (+14.5%) -  Record annual CPP of $4.12, (+ 3.9%) -  Opened XSCAPE Entertainment Centre at SilverCity Newmarket Cinemas -  Launched speed of service initiatives (Zoning) -  Rationalization of Branded Food Offerings

2009 Accomplishments

1.  Cineplex.com -  #1 destination of choice for movie-goers in Canada -  Redesigned website to add enhanced search capability/widgets/improved navigation 2. e-commerce -  The Cineplex Store

-  Gift cards online -  Earn and redeem SCENE points online -  Signed a license agreement with Roxio CinemaNow - to power a new digital movie

download service at cineplex.com -  Online ticketing

-  Significant increase in online ticket sales (54.2%) -  PRINT SKIP SCAN service expanded to 92 locations

3. Mobile -  Mobile site developed and launched -  m.cineplex.com

!   Interactive

2009 Accomplishments

-  The Met Opera’s Live in High Definition series expanded to 90+ theatres -  Launched The Met Summer Series -  Expanded alternative content offerings

-  Concerts, sporting events, speaker series -  Launched new partnership with the UK’s National Theatre (5 performances)

!   Alternative Programming

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Exhibition

2010:

!   Digital rollout will expand to replace 35mm projectors

!   Expand VIP Cinemas !   UltraAVX - Audio Visual Experience

!   New builds (CrossIron Mills - Calgary, AB, Chilliwack, BC)

!   Theatre Upgrades and Retrofits

!   70 million people visited our theatres in 2009

!   Exhibition fuels ALL core businesses

Digital Projection and 3D

!   100+ additional 3D screens to be added by December 31/10 (overall target 30-35% of circuit)

!   Canadian digital financing structure

-  Targeting to launch by December 31, 2010

-  Targeting 18 months to complete rollout

Digital

New Builds As of Dec. 31, 2008 As of Dec. 31, 2009 As of June 30, 2010

100%

3D Impact

!   Game changer – guests love 3D

!   Drives increased attendance

!   Drives increased box office revenues (premium price)

!   Provides incremental growth potential moving forward

-  Media – advertising revenues

-  Alternative Programming – 3D sports, concerts, live theatre, opera and more!

-  Other core businesses benefit e.g. Merchandising, SCENE

2008 2009 Q2 YTD 2009 Q2 YTD 2010

New Theatres and Retrofits - 2009

Cineplex Odeon Westmount & VIP Cinemas

SilverCity CrossIron Mills Cinemas & XSCAPE Entertainment Centre

New Theatres and Retrofits - 2010+

Exhibition Summary

!   SCENE !   Telus Tuesdays !   New Builds and Retrofits !   Evolving the Entertainment Experience

-  Digital and 3D -  UltraAVX - Audio Visual Experience

-  XSCAPE Entertainment Centres

-  VIP Cinemas

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Loyalty

Media

Interactive

Merchandising

!   The Metropolitan Opera !   World Wrestling Entertainment !   Bollywood and Ethnic Movies !   Concerts and Live Events !   UFC !   2010 Olympic Games at 64

Cineplex theatres across Canada !   Future

-  3D sports, 3D concerts, live theatre productions, speaker series

Alternative Programming

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Merchandising CPP Revenue Growth

Pro Forma�2005 �

Merchandising

!   Expand speed of service initiatives (Zoning) !   Rationalization of Branded Food Offerings !   Expand in-house brand – Outtakes !   Strategically add XSCAPE Entertainment Centres

2010:

XSCAPE Entertainment Centre

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

Cineplex Media

94% �Market Share

!   On screen advertising - Full Motion and Digital Pre-show

!   Famous and Famous Quebec Magazines

!   Cineplex.com advertising

!   Specialty Media - backlits, banners, popcorn bags, in-theatre sampling, kiosks, etc.

!   Cineplex Digital Media - Theatre and External Networks

!   Sponsorship and Naming Rights

!   Other exhibitor representation commissions

Cineplex Media Revenue Summary

$47.1 �

$56.2 �$61.0 �

$66.8 �

2006 � 2007 � 2008 � 2009 �2005 �

$34.2 �

($millions) �

Cineplex Media Revenue by Component

2009

Cineplex Digital Media - Theatre Lobby Network

!   Upgrading digital signage in 100 theatres -  Lobby Network and Service Level

!   August 2010 completion

Cineplex Digital Media - External Network

!   Acquired Onsite Media in 2009

!   Stadium Network: Ottawa, Calgary, Vancouver, Edmonton

!   Office Network: 26 Brookfield properties - Toronto, Ottawa, Calgary, Edmonton, Vancouver

!   Plans to expand External Network

!   Potential acquisition opportunities

Digital Display & Communications Inc. !   Acquired in July 2010

!   Award-winning digital signage company

!   DDC designs, installs, maintains and operates networks for retail, financial, hospitality and entertainment industries

!   DDC’s ‘service model’ networks combined with Cineplex Digital Media’s ‘advertising model’ networks, sales force and entertainment content provide significant opportunities for growth

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

SCENE Loyalty Program

!   Program launched (January 24, 2007) !   Reached 1 million members (July 22, 2008) !   Reached 2 million members (October 24, 2009) !   At June 30, 2010 - 2.4 million members +

Number of members (millions)

!   Gain a more thorough understanding of guests

!   Mine membership data to generate insights

!   Communicate directly and regularly !   Drive Increased frequency of visitation !   Drive increased purchase incidence !   Generate additional revenue

!   Continued member acquisition !   Add program partners !   Use database to target members

-  Studios – film sequels or series -  Advertisers – targeted database

!   Cineplex targeted offers -  Drive frequency and purchase

incidenceMonetize program

SCENE Loyalty Program

Scene Objectives:� Future Initiatives:�

39

40

Loyalty

Media

Interactive

Merchandising

Exhibition

Evolving the Entertainment Experience

Alternative Programming

2010:�

2010:

!   Adding more robust rich content

!   New blogging/search enhancements

!   New search engine optimization (SEO) initiatives

!   Increased page views and unique visitors

!   Increased online advertising revenue

Interactive - Cineplex.com

!   Further enhancements / in-house systemSignificant increases in online ticket sales

Interactive - e-commerce

Cineplex Store:

2010:

Online Ticketing:

2010:

!   Fastest, easiest and most convenient way to purchase tickets -- PRINT SKIP SCAN

!   Online sales of gift cards, DVDs, Blu-ray, new release and catalogue movies

!   Earn and redeem SCENE points

!   Launch digital movie download service

!   m.cineplex.com !   SMS Mobile Platform

!   Cineplex Apps - Blackberry, iPhone, Android !   Mobile Payment and Ticketing !   SMS – contests, games, promotions,

segmented alerts !   Mobile Advertising Delivery

Interactive - Mobile

Mobile:

2010:

Financial �Highlights

Record Annual Results

2009 2008 %

Box Office $581.1* $510.9 13.7%

Concession 288.3* 251.6 14.5

Other 95.0* 87.1 9.0

EBITDA Margin 16.6% 16.5% 0.1

Attendance 70.0* 63.5 10.2

BPP $8.30* $8.05 3.2

CPP $4.12* $3.96 3.9

Regal Cinemark Carmike AMC

BPP 6.0% 2.4% 4.7% 4.5%

CPP growth 2.6% 0.6% -0.2% 0.5%

Concession revenue growth 2.3% 12.7% 5.5% -0.4%

Total Revenue growth 4.4% 13.4% 8.9% 2.4%

EBITDA growth 2.1% 20.3% 10.0% 2.7%

Attendance growth -0.3% 12.0% 5.7% -0.9%

Cineplex vs. US Exhibitors - 2009 vs. 2008

Attendance (millions) �

Box Office Revenue

Box Office Revenue Box Office per Patron

($millions) �

Concession Revenue

Concession Revenue CPP

($millions) �

Other Revenue

$67.9 �

$81.0 �$87.1 �

$95.0 �

($millions) �

$44.3 �

Adjusted EBITDA*

Adjusted EBITDA Adjusted EBITDA Margin

($millions) �

*Cineplex Entertainment Limited Partnership

Q2 2010 Results (millions) �

Q2 2009 % Q2 2010 YTD

Q2 2009 YTD

%

Box Office $151.4 -4.5% $304.9 $281.7 8.2%

Concession 74.2 -2.2% 147.5 137.4 7.4%

Other 23.0 15.6% 48.6 40.6 19.6%

EBITDA Margin 18.0% -0.9% 15.4% 16.2% -0.8%

Attendance 18.2 -8.2% 34.7 34.1 1.7%

BPP $8.34 4.0% $8.78 $8.25 6.4%

CPP $4.09 6.6% $4.25 $4.03 5.5%

Credit Facilities

Covenant Leverage Ratio

Maturity Capacity Drawn

Term Facility $235.0 $235.0

Revolving Facility 130.0 0

Total $365.0 $235.0

($millions) �

Distributions

Payout Ratio

Distributions

Corporate Conversion Plan

!   Conversion Date - January 1, 2011 !   Plan of Arrangement - Business Corporations Act (Ontario) !   Management Information Circular – Q4 2010 !   Special Meeting – Q4 2010 !   Tax-Deferred Rollover Basis for Canadian Resident

Unitholders !   Eligibility for dividend tax credits !   Initial Dividends

-  $1.26 annually payable monthly

Questions �Answers

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