Loews Cineplex Signs Major On-Screen Advertising Agreement

NEW YORK--(BUSINESS WIRE)--May 25, 2000--Loews Cineplex Entertainment Corporation (NYSE:LCP;TSE:LCX) announced today that it has signed a long-term exclusive agreement estimated to be worth in excess of $60 million with Technicolor Entertainment in connection with the placement of rolling stock advertising on Loews Cineplex theatre screens in the United States.

The agreement will provide for Technicolor to sell filmed advertising prior to the feature presentation on approximately 1,800 Loews Cineplex screens throughout the United States. The program is expected to debut in July 2000 and will not extend the length of Loews Cineplex's pre-show presentation, reflecting the company's commitment to provide its customers with an enjoyable and satisfying moviegoing experience. Loews Cineplex currently runs on-screen advertising in its theatres in Canada, Europe and Asia.

Lawrence J. Ruisi, President and CEO of Loews Cineplex, noted that "We are very pleased to announce this agreement, which represents the next step in our strategy to generate ancillary revenues in our business. On-screen advertising has been shown to be five times as effective as television advertising. With our broad demographic audience, national reach and ideal urban concentration, our theatres represent a unique and highly effective opportunity for advertisers to deliver their message. On-screen advertising represents a significant source of revenue for international exhibitors throughout the world, and we are excited about the potential value this transaction creates for our business in the United States."

About Loews Cineplex Entertainment:

Loews Cineplex Entertainment Corporation (NYSE: LCP; TSE:LCX) is one of the world's largest publicly traded theatre exhibition companies in terms of revenues and operating cash flow, with 2,926 screens in 385 locations primarily in major cities throughout the United States, Canada and Europe. Loews Cineplex's divisions include Loews Cineplex International, Loews Cineplex United States and Cineplex Odeon Canada. Loews Cineplex operates theatres under the Loews, Sony and Cineplex Odeon names. In addition, the Company is a partner in Magic Johnson Theatres, Star Theatres, Yelmo Cineplex de Espana, De Laurentiis Cineplex d'Italia, Transturk Cineplex of Turkey and Far East Cineplex of Vietnam.

About Technicolor:

A wholly owned subsidiary of Carlton Communications Plc (Nasdaq: CCTVY), Technicolor has evolved as the number one processor of motion picture film to become the world's largest independent manufacturer and distributor of Videocassettes, DVD-Video, DVD-ROM, CD-ROM and CD-Audio and a leading service provider for cinemas involving distribution of film prints, promotional materials and on-screen advertising.

Technicolor serves an international base of entertainment and software customers with its facilities in Michigan, California, Ohio, New Jersey, New York, Tennessee, Virginia, Mexico, Canada, Denmark, Holland, Italy, Spain, Luxembourg, and the United Kingdom. Major Hollywood clients include Disney, Warner, DreamWorks and New Line. Software publishers include Microsoft and Hewlett Packard.

This press release contains forward-looking statements regarding the Company's results and prospects. Actual results could differ materially from these statements. The forward-looking statements in this press release should be read in conjunction with the factors described in "Item 1. Business - Factors That May Affect Future Performance" in the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 1999, which, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this press release and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: Loews Cineplex Entertainment

Mindy Tucker, 212/833-6073

Corporate Vice President, Strategic Planning

I can assure you that this is complete and total bullshit. About 5 minutes after they "think" they have got patrons used to ads, they will add more and more.

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Those who go to the movies almost every week dislike repetition. A good rule of thumb is that many things get stale on the third viewing, unless they're unusually funny or entertaining. This would imply that ads would need to be changed at least every two weeks to not irritate the frequent moviegoers. I don't see companies making the effort to pump out new commercials every two weeks -- why put effort into making something with a 2-week lifetime? So, I guess frequent moviegoers will be stuck with seeing the same commercials over and over.

The repetition has never bothered me much with the policy trailers until now. In the past, the brief trailers for Carmike and Regal have never bothered me. Recently, though, the policy trailer now used by Regal with the little girl with the masculine voice is old and I dread seeing it again. The "train" or "roller coaster" trailer never got annoying after nearly three years, but the "masculine voice girl" is already unbearable. I often hear several utterings of "Oh, no" when that thing starts playing now in Regal theatres. Repeated commercials are going to have a similar effect. In fact, that new Regal thing isn't as much of a policy trailer as much as it is a really bad Pepsi commercial. Sometimes, I wish the audience would just blatently "BOO" any commercials they've seen before and don't like.

Before a movie, showing something that gives the audience information about upcoming movies is an important way to get people to come back. Replace those previews with commercials and attendances will drop in the future. I promise it.

My other gripe about commercials in theatres is that many of them are nowhere near the quality of standard movie trailers. Many are simply still images (like a slide) with a voice advertising something (O'Charleys, University of Alabama A&M, Donna Apple Realty, etc.). Some are presented in the TV aspect ratio of 1.33:1 and some of them look like video blown up to 35mm. If they're going to make commercials to be shown in theatres on film, they should at least compose them to fit either the flat or scope format, and use 35mm film (or equivalent digital resolution) for shooting. Well, that's enough ranting about commercials for the time being.

Evans A Criswell http://home.hiwaay.net/~criswell/theatre/

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Local or "low end" commercials usually originate on video.

To cut costs, "rolling stock" ads often are not printed on Kodak film.

Feature films and trailers usually use 35mm film for production, and use film quality post production techniques. If digital effects and compositing are used, at least 2K resolution is used, and 4K is preferred.

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John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Eastman Kodak Company
Research Labs, Building 69, Room 7419
Rochester, New York, 14650-1922 USA
Tel: 716-477-5325 Fax: 716-722-7243
E-Mail: john.pytlak@kodak.com

People are going to get pissed off and not come to the movies. Why should they pay to be advertised to. Slides are bad enough, but this is just stupid.

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There were seldom more than two trailers shown before the movies! There would usually just be the Regal "train" policy trailer, plus one movie preview, then the movie would start!

About the Regal "train" policy trailer: I have not seen it since I first was subjected to the "masculine voice girl" trailer on Friday, June 23, 2000 in front of "Chicken Run" on its opening night. I assume that June 23 was the night that the change was made since I saw movies the week before at Regal theatres. I sure hope Regal doesn't keep that awful thing as long as they kept the "train". I've actually complained about that trailer in comment cards to Regal and it was not put on several movies I've seen recently. Yippee! It's fun to put comments like "It's time for that new policy trailer to jam in the gate and melt away forever." or "That little girl with the masculine voice is in severe need of a brain wrap." Have any of you noticed the terrible lab splices visible in that thing?

At least with the "train" policy trailer, the kids loved it, and if there were any high school students from Grissom High School in the theatre, they'd hold up their arms as if they were on a roller coaster while the thing was playing.

More commercials in theatres are inevitable, but let's just hope that efforts will be made to make them entertaining, like the recent one about the guy who has a girlfriend made of rice crispy treats material (I can't remember the product being advertised!) There is also the commercial that ends with a guy saying "I'm not a cheerleader, I'm an athletic supporter." I guess if they make them too entertaining, the product won't be remembered, as is the case with me and these two funny ones.

I have curtains in my new 16 plex.