Loews Cineplex Entertainment (ticker: LCP, exchange: New York Stock Exchange) News Release -
2/15/2001

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Loews Cineplex Entertainment to be Acquired by Investor Group; Proposed Joint Investment By
Onex Corporation, Oaktree Capital and Pacific Capital Group

NEW YORK & TORONTO--(BUSINESS WIRE)--Feb. 15, 2001--

Loews Cineplex and U.S. Subsidiaries Voluntarily
File Chapter 11 Petitions

Cineplex Odeon and Canadian Subsidiaries File CCAA Application

Group to Provide Equity Investment of Approximately $250 Million

Loews Cineplex Entertainment Corporation (NYSE: LCP; TSE: LCX) announced today that it has
signed a letter of intent with an investor group comprised of Onex Corporation (TSE: OCX), Oaktree
Capital Management, LLC and Pacific Capital Group, Inc., regarding a proposed acquisition of Loews
Cineplex and its subsidiaries and joint venture interests and a restructuring of Loews Cineplex's
outstanding indebtedness.

In addition, Loews Cineplex announced that, in conjunction with and as contemplated by this
proposed transaction, Loews Cineplex and all of its wholly-owned U.S. subsidiaries have filed
voluntary petitions for relief under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the Southern District of New York. In Canada, an application under the Companies'
Creditors Arrangement Act (CCAA) will be brought today before the Ontario Superior Court of Justice
for Cineplex Odeon Corporation and certain of its other Canadian subsidiaries.

Loews Cineplex and all of its subsidiaries will conduct normal business operations. While a number
of theatres will close as a result of today's actions, all other theatres operated by the Company will
open as usual, offering a full array of films, refreshments and services.

Lawrence J. Ruisi, President and Chief Executive Officer of Loews Cineplex, said:

"We believe the actions we are taking today will allow the Company to move forward as a strong,
well-capitalized entity with excellent sponsors at a time when many of our competitors in the North
American film exhibition industry are experiencing severe financial constraints. The proposed
transaction and related restructuring steps provide an opportunity to resolve our liquidity problems
and other issues arising from the industry-wide oversupply of theatre screens," Ruisi concluded.

On behalf of the three investors, Gerald W. Schwartz, President and Chief Executive Officer of
Onex, said: "Loews Cineplex has very attractive assets in terms of the high quality of its theatres
and their important major market locations. We are excited about the opportunity to own these
assets and to work with management to position this company as the preeminent exhibitor in the
industry."

The letter of intent contemplates that the proposed acquisition by the investor group would be
consummated pursuant to a chapter 11 plan of reorganization and a Canadian plan of arrangement.
Under this proposed acquisition and restructuring, the investor group would convert the bank debt it
currently holds (approximately $250 million principal amount out of a total of $740 million) into 88%
of the outstanding equity of reorganized Loews Cineplex, and general unsecured creditors of Loews
Cineplex (including holders of Loews Cineplex's subordinated debt) would receive approximately 12%
of the outstanding equity of reorganized Loews Cineplex and warrants to purchase at a premium an
additional 5% of such equity. In addition, the proposal provides for a distribution to the holders of
the bank debt (other than the investor group) new term loans with an aggregate face amount
providing for a blended recovery of 98.26% of the face amount of that bank debt. The proposal does
not contemplate any distribution to the Company's existing equity holders. In connection with the
proposal, holders of at least two-thirds of the bank debt have agreed to support the Company's
approach and negotiate exclusively with the investor group on the transaction contemplated by the
letter of intent for a period of 30 days. Cineplex Odeon expects to file its own Canadian
restructuring plan, which will provide distribution to its creditors as part of its reorganization.

Onex and Oaktree Capital together beneficially own interests in approximately $250 million of the
Company's senior bank debt. Oaktree Capital also owns approximately 60% of the Company's
outstanding senior subordinated notes. As participants in the investor group, both are fully
supporting this proposal to acquire Loews Cineplex.

In order to finance its operations during the restructuring process and the completion of certain
ongoing construction projects, Loews Cineplex has filed a motion with the court seeking interim
approval for debtor-in-possession financing from a bank group led by Bankers Trust Company. If the
motion is approved, the Company will apply a portion of the financing to enable Cineplex Odeon to
meet its capital needs. This proposed new revolving credit facility, which expires on January 31,
2002, is designed to ensure that the Company has sufficient liquidity to operate in the ordinary
course and meet certain of its funding commitments for completion of certain theatre complexes now
under construction in North America. The proposed aggregate debtor-in-possession financing
commitment from the bank group is $60 million.

In conjunction with the restructuring, and as previously announced, Loews Cineplex will close
approximately 21 theatres in the U.S. immediately and is seeking court permission to reject the
leases for those locations. (A LIST OF AFFECTED THEATRES FOLLOWS THIS RELEASE.) As of
November 30, 2000, Loews Cineplex operates 2,965 screens in 365 locations in the United States.
In Canada, Cineplex Odeon will announce plans to close approximately 25 theatres in the coming
weeks once court approval for these closures has been obtained. The Company will seek such
approval later today. Cineplex Odeon operates 856 screens in 114 locations in Canada. Loews
Cineplex will continue to review its entire North American portfolio, as well as its theatres in Poland,
and expects to close at least an additional 50 theatres in the future. The locations and timing of the
additional closures will depend on the outcome of lease negotiations.

The Company expects to continue normal business dealings with all of its film distributors
throughout the restructuring process. Vendors, suppliers and other business partners will continue
to be paid under normal terms for goods and services provided during this period. In accordance
with applicable law and court orders, vendors and suppliers who provided goods or services to the
Company before today's filing may have pre-petition claims, which will be frozen pending court
authorization of payment or consummation of a plan of reorganization. The Company has filed a
motion today seeking to pay on normal terms all pre-petition claims of its film distributors and
continue honoring gift certificates, movie passes and other customer programs.

"We appreciate the continuing support of our customers, lenders and suppliers and the dedication of
our employees," Mr. Ruisi said. "While today's court filings are difficult, coupled with the transaction
and related restructuring steps, they will, in the long term, serve the interests of our employees,
creditors and customers by making the Company healthier overall. The restructuring process will
enable us to focus on locations with the greatest potential to serve their markets more effectively
and attract customers, producing greater efficiencies and significant cost savings. We believe that
the results will strengthen our financial performance and position the Company for success in the
future."

The investor group's proposal is subject to, among other things, the execution of definitive
documentation but not to any due diligence conditions. The proposed transaction is also subject to
approval under the Hart-Scott-Rodino Act, approval by Loews Cineplex's creditors and shareholders
and such other approvals as may be required by law and other customary conditions. Given these
conditions, there can be no assurance that the proposed transaction will be consummated.

Onex Corporation is a diversified company with annual consolidated revenues of C$20 billion,
consolidated assets of C$19 billion and 83,000 employees. Onex is ranked the 12th largest
company in Canada. It operates through autonomous subsidiaries that are leaders in their
industries. They include Sky Chefs, Celestica Inc., ClientLogic Corporation, InsLogic Corporation,
Lantic Sugar Limited, Dura Automotive Systems, Inc., J.L. French Automotive Castings, Inc.,
MAGNATRAX Corporation, Galaxy Entertainment, Inc., and Performance Logistics Group, Inc. Onex
shares trade on The Toronto Stock Exchange under the stock symbol OCX.

Oaktree Capital Management, LLC is a U.S.-based investment management firm with more than $17
billion in assets under management in specialized investment strategies. These strategies include
distressed debt, high yield, convertible securities, private equity, real estate and emerging markets.
Its institutional clients include Fortune 100 companies, large public pension funds, university
endowments, private foundations and high net worth individuals.

Pacific Capital Group, Inc. ("PCG") is a Los Angeles-based investment firm founded in 1985. PCG is
a leading principal equity investor and merchant banking firm which has provided capital to
numerous global companies in the telecommunications, technology, media, real estate, financial
services and health care industries.

Loews Cineplex Entertainment Corporation is one of the largest publicly traded theatre exhibition
companies in terms of revenues and operating cash flow, with 2,965 screens in 365 locations as of
the November 30, 2000, primarily in major cities throughout the United States, Canada and Europe.
Loews Cineplex Entertainment Corporation operates theatres under the Loews, Sony, Cineplex
Odeon and Europlex names. In addition, the Company is a partner in Magic Johnson Theatres, Star
Theatres, Yelmo Cineplex de Espana, De Laurentiis Cineplex d'Italia, Odeon Cineplex in Turkey and
Megabox Cineplex of Korea.

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 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations--Factors
That May Affect Future Performance" in the Company's Quarterly Report on Form 10-Q for the
quarterly period ended November 30, 2000, 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.

THE FOLLOWING THEATRES IN THE U.S. ARE BEING CLOSED:

Theatres Address # of Closing
Screens Date
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FLORIDA
Sand Lake 835 Sand Lake Road 7 2/15/01
Orlando, FL 32809
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IDAHO
Nampa 2104 Caldwell Blvd. 6 2/15/01
Nampa, ID 83651
Northgate 6950 West State Street 6 2/15/01
Boise, ID 83703
Towne Square 130 North Milwaukee 6 2/15/01
Boise, ID 83704
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ILLINOIS
Commons 222 Common Drive 4 2/19/01
Chicago Ridge, IL 60415
Evanston 1716 Central Avenue 5 2/15/01
Evanston, IL 60201
Grove 1620 75th Street 6 2/19/01
Downers Grove, IL 60517
Oakbrook Mall 2020 Spring Road 4 2/19/01
Oakbrook, IL 60521
Orland Square 49 Orland Square Drive 6 2/15/01
Orland Park, IL 60462
Stratford 804 Stratford Square 4 2/15/01
Bloomingdale, IL 60108
Westridge Court 325 Soute Rte. #59 8 2/15/01
Naperville, IL 60540
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MASSACHUSSETTS
Nickelodeon 606 Commonwealth Avenue 5 2/19/01
Boston, MA 02215
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MINNESOTA
Westwind 4721 Hwy 101 3 2/22/01
Minnetonka, MN 55345
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NEW JERSEY
Showboat 725 River Road 4 2/15/01
Edgewater, NJ 07020
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NEW YORK
Worldwide 340 W. 50th Street 6 2/15/01
New York, NY 10019
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TEXAS
Spectrum 2660 Augusta Drive 9 2/15/01
Houston, TX 77057
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UTAH
Southtowne Center 282 West 10600 South 10 2/22/01
Sandy, UT 84070
Trolley Square Mall 523 Trolley Square 4 2/19/01
Salt Lake City, UT 84117
University 959 South 700 East Street 4 2/19/01
Orem, UT 84097
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VIRGINIA
Manassas Mall 8300 Sudley Road 7 2/15/01
Manassas, VA 20109
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WASHINGTON
Tacoma Central 3102 S. 23rd St. 6 2/15/01
Tacoma, WA 98405
City Centre 1420 5th Avenue, Suite 375 2 2/15/01
Seattle, WA 98101
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Andrew McCrea

Our old head projectionist is the new GM, and he was a little mad when, after getting a New York judge to sign over the place, Lowes had already pulled out half of the digital sound modules!

More than that, Lowes had staffed the place with one concessions worker, no ushers, a few box office workers, two projectionists, and only a handful of managers!

Talk about a hard sell!!

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Andrew McCrea

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Oh well, dvd it is I guess.

Steve

What many don't seem to understand is that with a 90/10 deal you get to subtract your house overhead (all expenses except film rent and concession costs) from the film gross before taking the 90%. Therefore, the theatre is guaranteed a 10% profit BEFORE the concession is even added in. The problem is getting the distributors to accept your real overhead. It has been my experience that most major chains have the overheads inflated higher then what they really are so that the 90/10 actually works in there favor and is seldom hit, and when it does, there profit is greater then 10%. On the other hand most independents have a difficult time getting the studios to accept there actual overhead and must settle for one that is lower then their true costs which makes the 90/10 kick in before it should. They therefore end up paying extra film rent before they have even reached the breakeven point.

What I would love to see is the 90/10 used ALL the time, not just when it is to the studios advantage. Remember 90/10 is a "VERUS". The contract reads that the terms are as follows: Four weeks at 70/60/50/40/35 out versus 90/10 over house expense of $xxxx (whatever your amount is). They figure it out both ways and whichever way brings in the highest film rent is what you get billed for. If it wasn't a "verus" and the deal was strictly 90/10 over house expense, then any week that you grossed less then your house overhead you wouldn't pay any film rent at all. Now wouldn't that be nice.

First of all, don't take me for a rube! You assume too much!

I know who owns the studios, my comments were of a pundit nature, aimed at my former political affiliations. The republican party blackballed me during my last election back in 1992 because I took a pro choice stance on my platform.

Second on my agenda this morning, the assumption that I have no Idea what I am talking about. HARDLY!!! Having dealt many years with the P&L statements for everyplace I have worked for the last twenty years, including in the theater industry. I also know the delicate negotiations that go on with distributors and studios to get prints at the best possible deal. My complaint is that too many exihibitors are too willing to just accept the drivel that is sent to every damned screen in the world at terms that would bankrupt god!

there used to be a fair deal between exhibitors and studios. But since the advent of overpaid stars, and union people, the film costs skyrocket out of control, leaving the studio no option but to rape the exhibitor, and the customer as well. They flood the market with thousands of prints of crap, oversell them for two weeks, then hitail town with thier illgotten booty. No one dares stop them. I mean really!!!

The only film stars getting paid big bucks are the one who take points on net returns vs. salary. These guys work hard to make sure that thier product is good, and sells, otherwise they dont get paid.

As for my current political affiliations, I voted for Bush, and never got any. I make fun of republicans because it is much more fun than making fun of democrats. Only reason is that democrats at least SEEM to give a rats ass. Republicans only want to sell you a rats ass.