Reading International Concludes Purchase of Hawaii and California Cinemas

LOS ANGELES, Feb. 22 /PRNewswire-FirstCall/ -- Reading International, Inc.
(Amex: RDI and RDIB) announced today that it completed the acquisition of 15
leasehold cinema complexes and related assets through its newly formed
subsidiary, Consolidated Amusement Theatres, Inc. ("Consolidated"). The
cinemas comprise 181 screens and generate revenues of approximately $80
million annually. Nine of the complexes (98 screens) are located in Hawaii
and represented nearly 70% of the Hawaiian box office receipts reported in
2007. The other six complexes (83 screens) are located in California, and
consist of a 16-screen complex in Bakersfield, a 16-screen complex in Sonoma
County, and four locations in San Diego. The San Diego cinemas represent the
third largest market share in the area at approximately 12%. RDI also
acquired in the transaction the Consolidated Amusement trade name, recognized
in the Hawaiian Islands for some 75 years. The acquisition was structured as a
purchase of 14 locations and a management agreement for one location.
(Logo: here )
The purchase price of the cinemas and other assets was $69.3 million, and
was financed primarily by a $50 million term loan and a $5 million revolving
line of credit provided by institutional lenders. While the term financing is
initially guaranteed by RDI, the guarantee will expire once the debt-to-cash
flow ratio falls below a certain threshold. Based on management's estimates
this should occur in about 18 to 24 months, upon the debt being reduced to
approximately $38 million, by applying most of the theaters' net cash flow
during that same timeframe to paying down the financing. An additional $21
million of financing was provided under a term loan from an affiliate of the
sellers. Recourse under the seller financing is limited to Consolidated and
its assets. In addition to the acquired assets, RDI has contributed to
Consolidated two of RDI's domestic theaters located in New Jersey and Dallas.
An affiliate of the sellers also has agreed to provide up to $3 million of
additional term loans to RDI at its request.
Management believes that the purchase price paid for these assets,
compares favorably to other recent publicly reported cinema acquisitions, and
is grateful for having been invited onto the short list of prospective buyers
for these theaters.
The sellers of the cinema assets are Pacific Theatres Exhibition Corp.,
and its affiliates ("Pacific"). An affiliate of Pacific is a shareholder in
RDI. Mr. Cotter, RDI's Chairman and Chief Executive Officer, was an executive
and a director of Pacific for over thirty years.
The management team knows these markets and assets extremely well, and
believes the price and financing terms will allow the company to achieve an
attractive return on this investment for its shareholders.
Management further believes that this transaction is a good opportunity to
expand upon its current base of US cinemas, into desirable markets but with
limited capital exposure. The Company has plans to immediately invest in
renovating the Kapolei Theater in Hawaii and the Carmel Mountain Theater in
San Diego, acquired in the transaction.
About Reading International, Inc.
Reading International (http://www.readingrdi.com) is in the business of
owning and operating cinemas and developing, owning and operating real estate
assets. RDI's business consists primarily of: -- the development,
ownership and operation of multiplex cinemas in the
United States, Australia and New Zealand; and
-- the development, ownership and operation of retail and commercial real
estate in Australia, New Zealand and the United States, including
entertainment-themed retail centers ("ETRC") in Australia and New
Zealand and live theater assets in Manhattan and Chicago in the United
States.

Forward-Looking Statements
This press release contains certain statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Such statements are
qualified by the inherent risks and uncertainties surrounding future
expectations generally and also may materially differ from actual future
experience involving any one or more of such statements. Such risks and
uncertainties include the possibility that the actual market share of the
acquired cinemas and anticipated reduction in the acquisition financing will
differ from these forward-looking statements, as well the risks and
uncertainties set forth from time to time in RDI's filings with the Securities
and Exchange Commission. The inclusion of a forward-looking statement in this
press release should not be regarded as a representation by RDI that its
objectives will be achieved. RDI undertakes no obligation to publicly update
forward-looking statements, whether as a result of new information, future
events, or otherwise.
Contact Information:
Reading International, Inc.
Andrzej Matyczynski
Telephone: (213) 235-2240

SOURCE Reading International, Inc.

Andrzej Matyczynski, of Reading International, Inc., +1-213-235-2240