Cineplex Inc. ("Cineplex") (TSX:CGX) today released its financial results for
the three and six months ended June 30, 2013.


Second Quarter Results



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                                                                Period over 
                                                                     Period 
                                                                     Change 
                                         2013        2012 (i)          (ii) 
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Total Revenues                 $301.6 million  $263.7 million          14.4%
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Attendance                       18.6 million    17.1 million           8.6%
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Other Revenues                 $ 37.6 million  $ 27.5 million          36.6%
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Net Income                     $ 28.5 million  $ 21.0 million          36.2%
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Adjusted EBITDA (iii)          $ 58.7 million  $ 47.3 million          24.2%
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Adjusted EBITDA Margin (iii)             19.5%           17.9%          1.6%
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Adjusted Free Cash Flow per                                                 
 Share (iii)                   $       0.7347  $       0.4816          52.6%
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Basic Earnings per Share       $         0.45  $         0.34          32.4%
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Diluted Earnings per Share     $         0.45  $         0.34          32.4%
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Year to Date Results



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                                                                Period over 
                                                                     Period 
                                                                     Change 
                                         2013        2012 (i)          (ii) 
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Total Revenues                 $549.7 million  $512.7 million           7.2%
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Attendance                       34.8 million    34.3 million           1.6%
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Other Revenues                 $ 64.6 million  $ 50.0 million          29.1%
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Net Income                     $ 37.4 million  $ 36.1 million           3.6%
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Adjusted EBITDA (iii)          $ 90.4 million  $ 88.4 million           2.3%
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Adjusted EBITDA Margin (iii)             16.4%           17.2%         -0.8%
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Adjusted Free Cash Flow per                                                 
 Share (iii)                   $       1.1186  $       0.9493          17.8%
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Basic Earnings per Share       $         0.60  $         0.60             -%
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Diluted Earnings per Share     $         0.59  $         0.60          -1.7%
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i.    Effective January 1, 2013, Cineplex implemented International         
      Financial Reporting Standard ("IFRS") 11, Joint Arrangements,         
      retrospectively. As a result, certain comparative items presented in  
      this news release for 2012 have been revised.                         
ii.   Period over period change calculated based on thousands of dollars    
      except percentage and per share values. Changes in percentage amounts 
      are calculated as 2013 value less 2012 value.                         
iii.  Adjusted EBITDA, adjusted EBITDA margin and adjusted free cash flow   
      per common share of Cineplex are measures that do not have a          
      standardized meaning under generally accepted accounting principles   
      ("GAAP"). These measures as well as other non-GAAP financial measures 
      monitored by Cineplex are defined in the 'Non-GAAP Financial Measures'
      section in this news release.                                         



"It was a record quarter for Cineplex," said Ellis Jacob, President and CEO,
Cineplex Inc. "New all-time records were set for total revenues and adjusted
EBITDA. Media revenues continued to be strong increasing 44.7% to $26.4 million.
Our SCENE program continued to increase its membership adding a further 200,000
members to reach 4.7 million. Increased attendance resulting from strong film
product during the period and increased revenues generated from concession, box
office and media, all contributed to the tremendous gains in adjusted EBITDA.


"In addition to this very strong financial performance, we continued to
strengthen our core exhibition business with the announcement of our agreement
to acquire 26 Empire theatres. This proposed acquisition will enable us to
extend our brand into Atlantic Canada, which will provide us with a truly
national presence from coast to coast. It also provides growth opportunities for
SCENE, cineplex.com, the Cineplex mobile app and other programs. We also
launched SuperTicket, which is the world's first-ever bundled offering from
multiple studios that enables movie-goers to purchase a movie admission ticket
and pre-order the UltraViolet digital download of a movie at the same time. The
pre-ordered digital version will be available before the movie is released for
home viewing and will also include a variety of additional value, such as bonus
SCENE points and more that will vary by film. Subsequent to the quarter end, we
announced our offer to acquire a market leading in-store digital signage
company, EK3 Technologies Inc. This acquisition complements our existing
Cineplex Digital Media business and combined with EK3, will make us a leader in
the indoor digital signage industry and provide a platform for significant
growth throughout North America."


KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2013 

During the second quarter of 2013, the board of directors of Cineplex (the
"Board") announced a monthly dividend increase of 6.7% to $0.1200 per Share
($1.44 on an annual basis) up from $0.1125 per Share ($1.35 on an annual basis)
effective with the May 2013 dividend. Also during the second quarter of 2013,
Cineplex announced that it had agreed to acquire 26 theatres from Empire
Theatres Ltd ("Empire"). The closing of the transaction is subject to customary
conditions, including receipt of relevant regulatory approval and is expected to
close in the third quarter of 2013. 


The following describes certain key business initiatives and results undertaken
and achieved during the second quarter of 2013 in each of Cineplex's core
business areas:


THEATRE EXHIBITION



--  Second quarter BPP was $9.36, an increase of 2.7% over the prior year
    period, representing a quarterly record for Cineplex, $0.18 higher than
    the previous quarterly record set in the fourth quarter of 2012. 
--  Opened Galaxy Cinemas Sarnia in Sarnia, Ontario and acquired Cineplex
    Cinemas Empress Walk in Toronto, Ontario. These two theatres replaced
    existing Cineplex theatre assets which closed with the opening of the
    new theatres. 
--  Continued the expansion of UltraAVX, Cineplex's premium large format
    experience targeting patrons looking for an enhanced presentation
    experience, with six new UltraAVX auditoriums added to the circuit in
    the second quarter of 2013. At June 30, 2013, Cineplex had 50 UltraAVX
    auditoriums. 
--  Added 3D screens in strategic locations across the circuit, increasing
    the number of 3D screens to 632 at June 30, 2013. 



MERCHANDISING



--  Second quarter CPP was $4.81, an increase of 3.2% over the prior year
    period, and a quarterly record for Cineplex, exceeding the previous
    record of $4.69 set in the first quarter of 2013.  
--  Continued the retail branded outlet optimization at theatre locations,
    with the continued expansion of Cineplex's Outtakes and Poptopia branded
    locations, with 13 new or rebranded outlets opened in the second
    quarter. 
--  Renewed the annual summer concession program, this year entitled Your
    Name in Lights, reaching across all Cineplex food and beverage outlets
    and launched key partner promotions with Toys R Us and the Calgary
    Stampede during the period. 



MEDIA



--  Media revenues in the second quarter of 2013 exceeded the same period in
    2012 by 44.7%. Showtime and digital pre-show revenues were the major
    contributors to the increase.  
--  Top advertising categories in the quarter included automotive,
    electronics and telecommunications, all of which recorded large
    increases in revenue compared to the prior year period. 
--  Entered into an agreement to provide specialty media services to ten
    Oxford Property malls and shopping centres. 
--  During the second quarter of 2013 Cineplex Media hosted its first
    Upfront presentation at the Scotiabank Theatre in downtown Toronto, with
    agencies and clients in attendance.  



ALTERNATIVE PROGRAMMING



--  Alternative programming events in the second quarter of 2013 included
    performances from the Metropolitan Opera live from New York, the
    National Theatre in London including performances of The Audience
    featuring Helen Mirren, sports programming as well as film and concert
    performances. 
--  Distributed and presented the faith-based, family-focused film Home Run
    in select theatres. 



INTERACTIVE



--  Launched SuperTicket, a first-ever bundled offering that allows movie-
    goers to purchase a movie admission ticket and pre-order the UltraViolet
    digital download of a movie at the same time. The first feature film to
    offer SuperTicket was Pacific Rim, released in July, with additional
    releases to be announced in the future. 
--  The Cineplex online store ("Cineplex Store") added new content partners
    and launched high definition content for electronic sell-through and
    video on demand ("VoD") digital movies. 
--  Cineplex.com registered a 36.6% increase in page views and a 27.4%
    increase in visits in the second quarter of 2013 compared to the prior
    year period, registering 127 million page views and 20 million visits
    during the quarter.  
--  As of June 30, 2013, the Cineplex app has been downloaded 6.5 million
    times and recorded 155.7 million app session. The app now reaches 11.4%
    of Canadian mobile subscribers. 
--  Cineplex was recognized with a national industry award for the Cineplex
    eGift Card and related marketing program, along with its partner Buyatab
    Online, at the 2013 PX Prepaid & Payment Awards. 



LOYALTY



--  Membership in the SCENE loyalty program surpassed the 4.7 million member
    mark during the quarter, increasing by approximately 0.2 million members
    during the second quarter of 2013.  
--  SCENE ran programs with various partners including Adidas, Cara Foods,
    Rogers, Virgin Mobile and Colgate-Palmolive during the second quarter of
    2013. 



OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 

Total revenues

Total revenues for the three months ended June 30, 2013 increased $38.0 million
(14.4%) to $301.6 million as compared to the prior year period. Total revenues
for the six months ended June 30, 2013 increased $37.1 million (7.2%) to $549.7
million as compared to the prior year period. A discussion of the factors
affecting the changes in box office, concession and other revenues for the
period is provided on the following pages.


Non-GAAP measures discussed throughout this news release, such as adjusted
EBITDA, adjusted free cash flow, attendance, BPP, premium priced product, same
store metrics, CPP, film cost percentage, concession cost percentage and
concession margin per patron are defined and discussed in the 'Non-GAAP
Financial Measures' section in this news release.


Box office revenues

The following table highlights the movement in box office revenues, attendance
and BPP for the quarter and the year to date (in thousands of Canadian dollars,
except attendance reported in thousands of patrons, and per patron amounts,
unless otherwise noted):




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Box office revenues              Second Quarter                Year to Date 
                    --------------------------------------------------------
                         2013      2012  Change      2013      2012  Change 
----------------------------------------------------------------------------
                                                                            
Box office revenues  $174,383  $156,226    11.6% $319,548  $305,639     4.6%
Attendance (i)         18,629    17,146     8.6%   34,820    34,273     1.6%
Box office revenue                                                          
 per patron (i)      $   9.36  $   9.11     2.7% $   9.18  $   8.92     2.9%
BPP excluding                                                               
 premium priced                                                             
 product (i)         $   8.37  $   8.23     1.7% $   8.30  $   8.18     1.5%
Canadian industry                                                           
 revenues (ii)                              4.0%                       -4.1%
Same store box                                                              
 office revenues (i) $161,599  $153,609     5.2% $295,571  $301,012    -1.8%
Same store                                                                  
 attendance (i)        17,341    16,877     2.7%   32,365    33,769    -4.2%
% Total box from                                                            
 premium priced                                                             
 product (i)             42.2%     36.0%    6.2%     38.9%     31.6%    7.3%
                                                                            
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(i) See 'Non-GAAP Financial Measures' section in this news release          
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(ii) The Movie Theatre Association of Canada ("MTAC") reported that the     
Canadian exhibition industry reported a box office revenue increase of 2.8% 
for the period from March 29, 2013 to June 27, 2013 as compared to the      
period from March 30, 2012 to June 28, 2012.  On a basis consistent with    
Cineplex's calendar reporting period (April 1 to June 30), the Canadian     
industry box office revenue increase is estimated to be 4.0%.  MTAC reported
that the Canadian exhibition industry reported a box office revenue decrease
of 4.1% for the period from December 29, 2012 to June 27, 2013 as compared  
to the period from December 30, 2011 to June 28, 2012 .  On a basis         
consistent with Cineplex's calendar reporting period (January 1 to June 30),
the Canadian industry box office revenue is estimated to also be a decrease 
of 4.1%.                                                                    
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Box office continuity                Second Quarter            Year to Date 
                              Box Office Attendance   Box Office Attendance 
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2012 as reported             $   156,226     17,146  $   305,639     34,273 
Same store attendance change       4,219        464      (12,513)    (1,404)
Impact of same store BPP                                                    
 change                            3,771          -        7,072          - 
New and acquired theatres         10,312      1,051       19,929      2,042 
Disposed and closed theatres        (145)       (32)        (579)       (91)
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2013 as reported             $   174,383     18,629  $   319,548     34,820 
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Second Quarter 



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Second Quarter 2013                %   Second Quarter 2012                % 
Top Cineplex Films     IMAX  3D  Box   Top Cineplex Films     IMAX  3D  Box 
----------------------------------------------------------------------------
1 Iron Man 3                           1 Marvel's The                       
                          X   X 13.6%     Avengers               X   X 22.6%
2 Star Trek: Into                      2 The Hunger Games        X      7.7%
   Darkness               X   X  9.6%                                       
3 Man of Steel            X   X  7.9%  3 Men in Black III        X   X  5.5%
4 Fast and Furious 6      X      6.8%  4 Madagascar 3:                      
                                          Europe's Most                     
                                          Wanted                 X   X  5.0%
5 The Great Gatsby            X  4.4%  5 Prometheus              X   X  4.7%
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Box office revenues increased $18.2 million, or 11.6%, to $174.4 million during
the second quarter of 2013, compared to $156.2 million recorded in the same
period in 2012. The increase was primarily due to a 8.6% increase in attendance
as a result of the strong depth of the film slate during the current period. The
prior year period was dominated by Marvel's The Avengers, whereas in the current
period multiple blockbusters delivered strong results. The acquisition of the
four theatres from AMC during the third quarter of 2012 also contributed to the
box office revenue increase in the current year period.


BPP for the three months ended June 30, 2013 was $9.36 compared to $9.11 in the
prior year period. This represents a quarterly BPP record for Cineplex,
exceeding the previous record of $9.18 established in the fourth quarter of
2012. The BPP increase was due to premium priced product accounting for 42.2% of
box office revenues in the current period, compared to 36.0% in the prior year
period. The increase in the percentage of box office revenues from premium
priced product was due in part to increased installations of UltraAVX, 3D, IMAX
and VIP screens since the second quarter of 2012. 


Cineplex continues to invest in premium priced formats including 3D, UltraAVX,
IMAX and VIP thereby positioning itself to benefit from the premiums charged for
these offerings. 


Year to Date 



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Year to Date 2013                  %   Year to Date 2012                  % 
Top Cineplex Films     IMAX  3D  Box   Top Cineplex Films     IMAX  3D  Box 
----------------------------------------------------------------------------
1 Iron Man 3              X   X  7.4%  1 Marvel's The                       
                                          Avengers               X   X 11.6%
2 Star Trek: Into                      2 The Hunger Games        X      3.9%
   Darkness               X   X  5.2%                                       
3 Man of Steel            X   X  4.3%  3 Dr. Seuss' The Lorax    X   X  2.8%
4 Fast and Furious 6      X      3.7%  4 21 Jump Street                 2.6%
5 Oz: The Great and                    5 Men in Black III        X   X  2.4%
   Powerful               X   X  3.7%                                       
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Box office revenues for the six months ended June 30, 2013 were $319.5 million
or 4.6% higher than the prior year period. The strong performance of the
blockbuster releases in the second quarter of 2013 more than offset the decline
in box office revenues reported in the first quarter of 2013. The acquisition of
the four theatres from AMC during the third quarter of 2012 also contributed to
the box office revenue increase in the current year period.


Cineplex's BPP for the six months ended June 30, 2013 increased $0.26, or 2.9%,
from $8.92 in the 2012 period to $9.18. This increase was primarily due to the
increase in revenues from premium-priced product. Premium-priced offerings
accounted for 38.9% of Cineplex's box office revenues in the six months ended
June 30, 2013, compared to 31.6% in the prior year period. The top five films in
the current period were all screened in IMAX and four in 3D (2012 period - four
in IMAX and three in 3D).


Cineplex's investment in premium-priced formats over the last five years has
positioned it to take advantage of the price premiums charged for these formats,
which has contributed to Cineplex's BPP growth in the current period compared to
the prior year period. This investment in premium-priced offerings was a key
factor resulting in Cineplex outperforming the Canadian industry box office
revenue growth during the 2013 periods. 


Concession revenues  

The following table highlights the movement in concession revenues, attendance
and CPP for the quarter and the year to date (in thousands of Canadian dollars,
except attendance and same store attendance reported in thousands of patrons,
and per patron amounts):




----------------------------------------------------------------------------
Concession revenues                Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
Concession revenues      $ 89,693 $ 79,962   12.2% $165,572 $156,999    5.5%
Attendance (i)             18,629   17,146    8.6%   34,820   34,273    1.6%
Concession revenue per                                                      
 patron (i)              $   4.81 $   4.66    3.2% $   4.76 $   4.58    3.9%
Same store concession                                                       
 revenues (i)            $ 84,203 $ 78,480    7.3% $155,482 $154,765    0.5%
Same store attendance                                                       
 (i)                       17,341   16,877    2.7%   32,365   33,769   -4.2%
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(i) See 'Non-GAAP Financial Measures' section in this news release          
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Concession revenue                                                          
 continuity                          Second Quarter            Year to Date 
                              Concession Attendance   Concession Attendance 
----------------------------------------------------------------------------
2012 as reported             $    79,962     17,146  $   156,999     34,273 
Same store attendance change       2,156        464       (6,433)    (1,404)
Impact of same store CPP                                                    
 change                            3,568          -        7,151          - 
New and acquired theatres          4,107      1,051        8,128      2,042 
Disposed and closed theatres        (100)       (32)        (273)       (91)
----------------------------------------------------------------------------
2013 as reported             $    89,693     18,629  $   165,572     34,820 
----------------------------------------------------------------------------



Second Quarter 

Concession revenues increased 12.2% as compared to the prior year period
primarily due to the 8.6% increase in attendance. CPP increased from $4.66 in
the second quarter of 2012 to $4.81 in the same period in 2013, a 3.2% increase
and quarterly record for Cineplex. Increased visitation at concession outlets
led to the record concession revenues in the period, and the record CPP in the
period was due in part to the expanded offerings outside of core concession
products driving higher average order value. Brand optimization continues with
the expansion of Cineplex's Outtakes and Poptopia brands, with 13 new or
rebranded outlets opened in the period.


Year to Date 

Concession revenues increased 5.5% as compared to the prior year period, due to
the 1.6% increase in attendance and the 3.9% increase in CPP. CPP increased from
$4.58 in 2012 to $4.76 in 2013. This represents the highest CPP Cineplex has
reported through the first six months of any year.


While the 10% SCENE discount and SCENE points issued on concession combo
purchases reduce individual transaction values which impacts CPP, Cineplex
believes that this program drives incremental visits and concession purchases,
resulting in higher overall concession revenues.


Other revenues 

The following table highlights the movement in media, games and other revenues
for the quarter and the year to date (in thousands of Canadian dollars):




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Other revenues                     Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
Media                    $ 26,350 $ 18,208   44.7% $ 42,660 $ 30,894   38.1%
Games                       1,776    1,452   22.3%    3,879    3,374   15.0%
Other                       9,430    7,826   20.5%   18,043   15,746   14.6%
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Total                    $ 37,556 $ 27,486   36.6% $ 64,582 $ 50,014   29.1%
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Second Quarter

Other revenues increased 36.6% to $37.6 million in the second quarter of 2013
compared to the prior year period. This increase was primarily due to higher
media revenues, which were $26.4 million, up $8.1 million, or 44.7%, when
compared to the prior year period. This increase was primarily due to higher
showtime and digital pre-show revenues, with the automotive, electronics and
telecommunications sectors providing the largest revenue increases. 


The games revenue increase is primarily due to the addition of six new XSCAPE
entertainment centres since the second quarter of 2012. On January 31, 2012,
Cineplex deconsolidated New Way Sales ("NWS") and merged its operations with the
amusement game and vending assets of Starburst Coin Machines Inc. ("SCM"), to
create Cineplex Starburst Inc ("CSI"). Cineplex and SCM both have a 50% interest
in CSI. Cineplex's share of revenues and expenses from CSI for the periods
subsequent to January 31, 2012 are included in the 'Share of income of joint
ventures' line in the statements of operations.


The increase in the other category is primarily due to higher auditorium rental
and screening revenues as well as additional revenues arising from enhanced
guest service initiatives.


Year to Date 

Other revenues increased 29.1% from $50.0 million in 2012 to $64.6 million
during 2013. Media revenues for 2013 increased $11.8 million, or 38.1%, from the
prior year period, with the increase primarily due to higher showtime and
digital pre-show revenues. CDM contributed $0.8 million to this revenue growth
in the period.


The year-to-date period includes a life-to-date one-time increase to games
revenue of $0.5 million recorded in the first quarter of 2013 due to a change in
accounting policy regarding the recognition of revenue on the sale of XSCAPE
gaming cards, which was offset by the games revenues for the first quarter of
2012 including the results of NWS for January 2012 ($0.4 million). The increase
in the other category is primarily due to higher auditorium rental and screening
revenues as well as additional revenues arising from enhanced guest service
initiatives.


Film cost 

The following table highlights the movement in film cost and the film cost
percentage for the quarter and the year to date (in thousands of Canadian
dollars, except film cost percentage):




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Film cost                        Second Quarter                Year to Date 
                    --------------------------------------------------------
                         2013      2012  Change      2013      2012  Change 
----------------------------------------------------------------------------
                                                                            
Film cost            $ 92,973  $ 83,465    11.4% $166,362  $160,172     3.9%
Film cost percentage                                                        
 (i)                     53.3%     53.4%   -0.1%     52.1%     52.4%   -0.3%
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(i) See 'Non-GAAP Financial Measures' section in this news release          
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Second Quarter 

Film cost varies primarily with box office revenue, and can vary from quarter to
quarter based on the relative strength of the titles exhibited during the
period. The increase in the second quarter of 2013 compared to the prior year
period was due to the increase in box office revenue and the impact of the 0.1%
decrease in film cost percentage. The decrease in film cost percentage is
primarily due to the settlement rate on the top films during the second quarter
of 2013 being higher than the average film settlement rate on certain strong
performing titles in the 2012 period.


Year to Date 

The year to date increase in film cost was due to the 4.6% increase in box
office revenues partially offset by the 0.3% decrease in film cost percentage
during the period. The decrease in the film cost percentage as compared to the
prior year period is primarily due to the settlement rate on certain strong
performing titles during the 2012 period being higher than the average
settlement rate in the 2013 period.


Cost of concessions 

The following table highlights the movement in concession cost and concession
cost as a percentage of concession revenues ("concession cost percentage") for
the quarter and the year to date (in thousands of Canadian dollars, except
concession cost percentage and concession margin per patron):




----------------------------------------------------------------------------
Cost of concessions                Second Quarter        Year to Date       
                               ---------------------------------------------
                                  2013    2012 Change   2013    2012  Change
----------------------------------------------------------------------------
                                                                            
Concession cost                $19,173 $16,720 14.7% $35,447 $32,490  9.1%  
Concession cost percentage (i)    21.4%   20.9% 0.5%    21.4%   20.7% 0.7%  
Concession margin per patron                                                
(i)                            $  3.79 $  3.69  2.7% $  3.74 $  3.63  3.0%  
                                                                            
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(i) See 'Non-GAAP Financial Measures' section in this news release          
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Second Quarter 

Cost of concessions varies primarily with theatre attendance as well as the
quantity and mix of concession offerings sold. The increase in concession cost
as compared to the prior year period was due to the 12.2% increase in concession
revenues and the 0.5% increase in the concession cost percentage during the
period. The concession margin per patron increased from $3.69 in the second
quarter of 2012 to $3.79 in the same period in 2013, reflecting the impact of
the higher CPP during the period. 


Year to Date 

The increase in concession cost during the period was due to the 5.5% increase
in concession revenues and the 0.7% increase in the concession cost percentage
during the period. The concession margin per patron increased from $3.63 in the
2012 period to $3.74 in the current period, reflecting the impact of the higher
CPP during the period.


Despite the 10% discount offered to SCENE members and SCENE points offered on
select combo offerings, which contributes to a higher concession cost
percentage, Cineplex believes the SCENE program drives incremental attendance
and purchase incidence which increases concession revenues and CPP.


Depreciation and amortization 

The following table highlights the movement in depreciation and amortization
expenses during the quarter and the year to date (in thousands of Canadian
dollars):




----------------------------------------------------------------------------
Amortization expenses              Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
Amortization of                                                             
 property, equipment and                                                    
 leaseholds              $ 14,209 $ 14,450   -1.7% $ 27,988 $ 28,984   -3.4%
Amortization of                                                             
 intangible assets and                                                      
 other                      2,318      228  916.7%    5,837    2,167  169.4%
                        ----------------------------------------------------
Amortization expenses as                                                    
 reported                $ 16,527 $ 14,678   12.6% $ 33,825 $ 31,151    8.6%
----------------------------------------------------------------------------



The quarterly decrease in amortization of property, equipment and leaseholds of
$0.2 million and year-to-date decrease of $1.0 million is due to certain assets
becoming fully amortized in the third quarter of 2012, partially offset by the
impact of the purchases of equipment and leaseholds relating to new theatre
construction.


The increase in amortization of intangible assets and other in the second
quarter of 2013 and the year to date period compared to the prior year periods
is due to the amortization of certain trade name assets that are being phased
out by Cineplex. These assets were previously classified as indefinite life
assets however during the fourth quarter of 2012 their classification was
changed to definite life with amortization being recorded over the anticipated
rebranding schedule of the associated theatres. During the second quarter of
2013, the timeframe over which certain assets were being amortized was adjusted
to reflect the revised completion date for the rebranding of the impacted
theatres.


Loss on disposal of assets 

The following table shows the movement in the loss on disposal of assets during
the quarter and the year to date (in thousands of Canadian dollars):




----------------------------------------------------------------------------
Loss on disposal of                                                         
 assets                            Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
Loss on disposal of                                                         
 assets                  $  1,314 $    727   80.7% $  2,376 $    672  253.6%
                                                                            
----------------------------------------------------------------------------



During the second quarter of 2013, Cineplex recorded a loss of $1.3 million on
the disposal of assets that were sold or otherwise disposed (2012 - $0.7
million). For the six months ended June 30, 2013, disposal of assets resulted in
a loss of $2.4 million on the disposal of assets that were sold or otherwise
disposed (2012 - $0.7 million).


Other costs

Other costs include three main sub-categories of expenses, including theatre
occupancy expenses, which capture the rent and associated occupancy costs for
Cineplex's various operations; other operating expenses, which include the costs
related to running Cineplex's theatres and ancillary businesses; and general and
administrative expenses, which includes costs related to managing Cineplex's
operations, including the head office expenses. Please see the discussions below
for more details on these categories. The following table highlights the
movement in other costs for the quarter and the year to date (in thousands of
Canadian dollars):




----------------------------------------------------------------------------
Other costs                        Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
Theatre occupancy                                                           
 expenses                $ 46,826 $ 41,182   13.7% $ 93,384 $ 82,890   12.7%
Other operating expenses   68,449   62,444    9.6%  132,917  120,979    9.9%
General and                                                                 
 administrative expenses   16,600   13,370   24.2%   33,107   29,096   13.8%
                        ----------------------------------------------------
Total other costs        $131,875 $116,996   12.7% $259,408 $232,965   11.4%
----------------------------------------------------------------------------



Theatre occupancy expenses

The following table highlights the movement in theatre occupancy expenses for
the quarter and the year to date (in thousands of Canadian dollars): 




----------------------------------------------------------------------------
Theatre occupancy                                                           
 expenses                        Second Quarter                Year to Date 
                    --------------------------------------------------------
                         2013      2012  Change      2013      2012  Change 
----------------------------------------------------------------------------
                                                                            
Rent                 $ 31,434  $ 27,512    14.3% $ 62,533  $ 55,270    13.1%
Other occupancy        16,340    14,460    13.0%   32,786    28,668    14.4%
One-time items (i)       (948)     (790)   20.0%   (1,935)   (1,048)   84.6%
----------------------------------------------------------------------------
Total                $ 46,826  $ 41,182    13.7% $ 93,384  $ 82,890    12.7%
----------------------------------------------------------------------------



(i) One-time items include amounts related to both theatre rent and other
theatre occupancy costs. They are isolated here to illustrate Cineplex's theatre
rent and other theatre occupancy costs excluding these one-time, non-recurring
items. 




----------------------------------------------------------------------------
Theatre occupancy continuity                Second Quarter     Year to Date 
                                                 Occupancy        Occupancy 
----------------------------------------------------------------------------
2012 as reported                           $        41,182  $        82,890 
Impact of new and acquired theatres                  5,748           11,092 
Impact of disposed theatres                            (19)            (210)
Same store rent change (i)                             123               (6)
One-time items                                        (158)            (887)
Other                                                  (50)             505 
----------------------------------------------------------------------------
2013 as reported                           $        46,826  $        93,384 
----------------------------------------------------------------------------
(i) See 'Non-GAAP Financial Measures' section in this news release          
----------------------------------------------------------------------------



Second Quarter 

Theatre occupancy expenses increased $5.6 million during the second quarter of
2013 compared to the prior year period. This increase was primarily due to the
impact of new and acquired theatres, primarily the four theatres acquired from
AMC in the third quarter of 2012 ($4.9 million). 


Year to Date 

The increase in theatre occupancy expenses of $10.5 million for 2013 compared to
the prior year was due to the new and acquired theatres, primarily the four
theatres acquired from AMC in the third quarter of 2012 ($9.8 million). This
increase was partially offset by the impact of favourable real estate tax
reassessments included in the 'one-time items' category.


Other operating expenses 

The following table highlights the movement in other operating expenses during
the quarter and the year to date (in thousands of Canadian dollars):




----------------------------------------------------------------------------
Other operating                                                             
 expenses                       Second Quarter                 Year to Date 
                  ----------------------------------------------------------
                        2013      2012  Change       2013      2012  Change 
----------------------------------------------------------------------------
                                                                            
Other operating                                                             
 expenses          $  68,449 $  62,444     9.6% $ 132,917 $ 120,979     9.9%
                                                                            
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Other operating continuity                  Second Quarter     Year to Date 
                                           Other Operating  Other Operating 
----------------------------------------------------------------------------
2012 as reported                           $        62,444  $       120,979 
Impact of new and acquired theatres                  3,095            6,164 
Impact of disposed theatres                           (269)            (469)
Same store payroll change (i)                          581              253 
Marketing change                                       497              630 
Media                                                  992            2,265 
New Way Sales                                            -             (299)
Other                                                1,109            3,394 
----------------------------------------------------------------------------
2013 as reported                           $        68,449  $       132,917 
----------------------------------------------------------------------------
(i) See 'Non-GAAP Financial Measures' section in this news release          
----------------------------------------------------------------------------



Second Quarter 

Other operating expenses during the second quarter of 2013 increased $6.0
million or 9.6% compared to the prior year period. The impact of new and
acquired net of disposed theatres was a $2.8 million increase to the category
primarily due to the four theatres acquired from AMC which accounted for $2.2
million of the $2.8 million increase. Media expenses increased $1.0 million due
to the higher volume of media sales activity in the quarter. As a result of
higher business volumes at the theatres during the current year period,
same-store payroll costs increased $0.6 million. 


The major movement in the Other category included the following:



--  The increase in 3D attendance due to stronger 3D product and the
    additional 140 3D screens added since June 30, 2012 resulted in higher
    3D royalty costs ($0.5 million). 
--  Increased online ticket sales and higher business volumes resulted in an
    increase in credit card service fees ($0.3 million). 



Total theatre payroll costs accounted for 43.5% of total operating expenses
during the second quarter of 2013 as compared to 44.3% for the same period one
year earlier. 


Year to Date 

For the six months ended June 30, 2013, other operating expenses increased $11.9
million. The impact of new and acquired net of disposed theatres was a $5.7
million increase to the category primarily due to the four theatres acquired
from AMC which accounted for $4.3 million of the $5.7 million increase. Cost
increases included higher media costs due to the higher media sales during the
period ($2.3 million), higher same-store payroll expenses related to the
increased business volumes ($0.3 million), higher marketing costs ($0.6 million)
and a $3.4 million increase in the Other category. 


The major movement in the Other category included the following: 



--  The increase in 3D attendance due to stronger 3D product and the
    additional 140 3D screens added since June 30, 2012 resulted in higher
    3D royalty costs ($0.9 million). 
--  Higher credit card service fees due to higher sales volumes during the
    period ($0.5 million).  
--  Increased spending for new business initiatives including Cineplex's
    interactive business ($0.3 million). 
--  Higher same-store utility costs during 2013 compared to the prior year
    period ($0.2 million).  
--  Higher theatre operating costs including cleaning, ticket paper, and
    projector bulb expenses. 



Total theatre payroll accounted for 43.5% of total other operating expenses in
the 2013 period, compared to 45.0% in the prior year period. 


General and administrative expenses 

The following table highlights the movement in general and administrative
("G&A") expenses during the quarter and year to date, including Share based
compensation costs, and G&A net of these costs (in thousands of Canadian
dollars):




----------------------------------------------------------------------------
G&A expenses                       Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
G&A excluding LTIP and                                                      
 option plan expense     $ 12,384 $ 10,679   16.0% $ 25,123 $ 23,175    8.4%
LTIP (i)                    3,824    2,131   79.4%    7,184    4,716   52.3%
Option plan                   392      560  -30.0%      800    1,205  -33.6%
                        ----------------------------------------------------
G&A expenses as reported $ 16,600 $ 13,370   24.2% $ 33,107 $ 29,096   13.8%
----------------------------------------------------------------------------



(i) LTIP includes the expense for the LTIP program as well as the expense for
the executive and Board deferred share unit plans. 


Second Quarter 

G&A expenses increased $3.2 million during the second quarter of 2013 compared
to the prior year period, due to a $1.7 million increase in LTIP expense. The
increase in Cineplex's share price during the period, which closed the second
quarter at a record high of $36.88, was the main contributor to the increase in
LTIP expense. G&A excluding LTIP and option plan expense increased due in part
to higher head office payroll expenses. 


Year to Date 

G&A expenses for 2013 increased $4.0 million compared to the prior year period,
due to the $2.5 million increase in LTIP expense. Head office payroll expenses
increased $1.8 million due to new business initiatives resulting in additional
headcount.


Share of income of joint ventures

Cineplex's joint ventures in the 2013 period include its 50% share of one
theatre in Quebec and one IMAX screen in Ontario, its 78.2% interest in CDCP and
its 50% interest in CSI. For the 2012 period, Cineplex's joint ventures included
one theatre in Quebec, one IMAX screen in Ontario, its 78.2% interest in CDCP
and its 50% interest in CSI for February and March as CSI was formed January 31,
2012. The following table highlights the components of share of income of joint
ventures during the quarter and the year to date (in thousands of Canadian
dollars):




----------------------------------------------------------------------------
Share of income of                                                          
 joint ventures                 Second Quarter                 Year to Date 
                   ---------------------------------------------------------
                        2013      2012  Change       2013      2012  Change 
----------------------------------------------------------------------------
                                                                            
Share of (income)                                                           
 of CDCP            $   (779) $   (851)   (8.5)% $ (1,112) $   (926)   20.1%
Share of (income)                                                           
 of CSI                 (285)     (272)    4.8%      (536)     (498)    7.6%
Share of (income)                                                           
 loss of other                                                              
 joint ventures         (152)       20      NM       (109)       (6)     NM 
                   ---------------------------------------------------------
Total (income) of                                                           
 joint ventures     $ (1,216) $ (1,103)   10.2%  $ (1,757) $ (1,430)   22.9%
----------------------------------------------------------------------------



Second Quarter 

The increase from income of $1.1 million in the second quarter of 2012 to income
of $1.2 million in the current period is due to nominal increases in income from
Cineplex's theatre joint ventures and CSI. 


Under IFRS 11, Cineplex's 50% interest in SCENE LP is classified as a joint
operation and not a joint venture resulting in Cineplex recognizing its share of
the assets, liabilities, revenues and expenses of SCENE in its consolidated
financial statements on a line-by-line basis. 


Year to Date 

The increase from income of $1.4 million in the 2012 period to income of $1.8
million in the current year is due to nominal income increases in all of
Cineplex's joint ventures. 


EARNINGS BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")

The following table presents EBITDA and adjusted EBITDA for the three and six
months ended June 30, 2013 as compared to the three and six months ended June
30, 2012 (expressed in thousands of Canadian dollars, except adjusted EBITDA
margin):




----------------------------------------------------------------------------
EBITDA                          Second Quarter                Year to Date  
                   ---------------------------------------------------------
                        2013      2012  Change      2013      2012  Change  
----------------------------------------------------------------------------
                                                                            
EBITDA              $ 57,513  $ 46,869    22.7% $ 87,866  $ 87,783     0.1% 
Adjusted EBITDA     $ 58,711  $ 47,263    24.2% $ 90,401  $ 88,402     2.3% 
Adjusted EBITDA                                                             
 margin                 19.5%     17.9%    1.6%     16.4%     17.2%   (0.8)%
----------------------------------------------------------------------------



Adjusted EBITDA for the second quarter of 2013 increased $11.4 million, or
24.2%, as compared to the prior year period. The increase as compared to the
prior year period was primarily due to the higher attendance in the period
resulting in higher exhibition and concession revenues, as well as the strong
media revenues in the period. The four theatres acquired from AMC in the third
quarter of 2012 contributed $0.5 million to adjusted EBITDA in the period.
Adjusted EBITDA margin, calculated as adjusted EBITDA divided by total revenues,
was 19.5% compared to 17.9% in the prior year period.


Adjusted EBITDA for the six months ended June 30, 2013 was $90.4 million
compared to $88.4 million in the prior year period. This increase was due to the
record second quarter exhibition results as well as the strong media revenues
recorded throughout the 2013 period compared to the prior year. 


Cineplex believes its operating and programming expertise, combined with its
merchandising, media, marketing, interactive and SCENE loyalty programs will
positively and significantly improve the operations of the four theatres
acquired from AMC. Cineplex has added UltraAVX auditoriums to these locations
and will continue to invest in each of the locations by potentially adding VIP
auditoriums or XSCAPE entertainment centres to one or more of the locations.


ADJUSTED FREE CASH FLOW

For the second quarter of 2013, adjusted free cash flow per common share of
Cineplex was $0.7347 as compared to $0.4816 in the prior year period. The
declared dividends per common share of Cineplex were $0.3525 in the second
quarter of 2013 and $0.3325 in the prior year period. During the twelve months
ended June 30, 2013, Cineplex generated adjusted free cash flow per Share of
$2.2326, compared to $2.0331 in the prior year period. Cineplex declared
dividends per Share of $1.3650 and $1.3000, respectively, in each period. The
payout ratios for these periods were approximately 61.1% and 63.9%,
respectively.


NON-GAAP FINANCIAL MEASURES

EBITDA and Adjusted Free Cash Flow

EBITDA and adjusted free cash flow are not measures recognized by GAAP and do
not have standardized meanings in accordance with such principles. Therefore,
EBITDA and adjusted free cash flow may not be comparable to similar measures
presented by other issuers. Management uses adjusted EBITDA and adjusted free
cash flow to evaluate performance primarily because of the significant effect
certain unusual or non-recurring charges and other items have on EBITDA from
period to period. 


EBITDA is calculated by adding back to net income, income tax expense,
amortization and interest expense net of interest income. Adjusted EBITDA is
calculated by adjusting EBITDA for gains and losses on disposal of assets and
the share of income of the Canadian Digital Cinema Partnership ("CDCP"). 


Adjusted free cash flow is a non-GAAP measure generally used by Canadian
corporations, as an indicator of financial performance and it should not be seen
as a measure of liquidity or a substitute for comparable metrics prepared in
accordance with GAAP. 


For a detailed reconciliation of net income to EBITDA and adjusted EBITDA and
from cash used in or provided by operating activities to adjusted free cash
flow, please refer to Cineplex's management's discussion and analysis filed on
www.sedar.com.


Per Patron Revenue Metrics

Cineplex reviews per patron metrics as they relate to box office revenue and
concession revenue such as BPP, CPP, BPP excluding premium priced product, and
concession margin per patron, as these are key measures used by investors to
value and assess Cineplex's performance, and are widely used in the theatre
exhibition industry. Management of Cineplex defines these metrics as follows:




Attendance: Attendance is calculated as the total number of paying patrons  
that frequent Cineplex's theatres during the period.                        
BPP: Calculated as total box office revenues divided by total paid          
attendance for the period.                                                  
BPP excluding premium priced product: Calculated as total box office        
revenues for the period, less box office revenues from 3D, UltraAVX, VIP and
IMAX product; divided by total paid attendance for the period, less paid    
attendance for 3D, UltraAVX, VIP and IMAX product.                          
CPP: Calculated as total concession revenues divided by total paid          
attendance for the period.                                                  
Premium priced product: Defined as 3D, UltraAVX, IMAX and VIP film product. 
Concession margin per patron: Calculated as total concession revenues less  
total concession cost, divided by attendance for the period.                



Same Store Analysis

Cineplex reviews and reports same store metrics relating to box office revenues,
concession revenues, rent expense and payroll expense, as these measures are
widely used in the theatre exhibition industry as well as other retail
industries. 


Same store metrics are calculated by removing the results for all theatres that
have been opened, acquired, closed or otherwise disposed of during the periods.
For the three and six months ended June 30, 2013 and 2012, ten locations that
have been opened or acquired and four locations that have been closed or
otherwise disposed of have been excluded, resulting in 130 theatres being
included in the same store metrics.


Cost of sales percentages

Cineplex reviews and reports cost of sales percentages for its two largest
revenue sources, box office revenues and concession revenues as these measures
are widely used in the theatre exhibition industry. These measures are reported
as film cost percentage and concession cost percentage, respectively, and are
calculated as follows: 




Film cost percentage: Calculated as total film cost expense divided by total
box office revenues for the period.                                         
Concession cost percentage: Calculated as total concession costs divided by 
total concession revenues for the period.                                   



This news release contains "forward-looking statements" within the meaning of
applicable securities laws, such as statements concerning anticipated future
events, results, circumstances, performance or expectations that are not
historical facts. These statements are not guarantees of future performance and
are subject to numerous risks and uncertainties, including those described in
our Annual Information Form and in this news release. Those risks and
uncertainties include adverse factors generally encountered in the film
exhibition industry such as poor film product and unauthorized copying; the
risks associated with national and world events, including war, terrorism,
international conflicts, natural disasters, extreme weather conditions,
infectious diseases, changes in income tax legislation; and general economic
conditions. Many of these risks and uncertainties can affect our actual results
and could cause our actual results to differ materially from those expressed or
implied in any forward-looking statement made by us or on our behalf. All
forward-looking statements in this news release are qualified by these
cautionary statements. These statements are made as of the date of this news
release and, except as required by applicable law, we undertake no obligation to
publicly update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise. Additionally, we undertake no
obligation to comment on analyses, expectations or statements made by third
parties in respect of Cineplex Inc. or Cineplex Entertainment Limited
Partnership, their financial or operating results or their securities.


About Cineplex Inc.

Cineplex is one of Canada's leading entertainment companies and operates one of
the most modern and fully digitized motion picture circuits in the world. A
top-tier Canadian brand, Cineplex operates numerous businesses including
theatrical exhibition, food services, gaming, alternative programming (Front Row
Centre Events), Cineplex Media, Cineplex Digital Solutions and the online sale
of home entertainment content through CineplexStore.com and on apps embedded in
various electronic devices. Cineplex is also a joint venture partner in SCENE -
Canada's largest entertainment loyalty program. 


Cineplex is headquartered in Toronto, Canada, and operates 136 theatres with
1,454 screens from British Columbia to Quebec, serving approximately 71 million
guests annually through the following theatre brands: Cineplex Odeon,
SilverCity, Galaxy Cinemas, Colossus, Coliseum, Scotiabank Theatres, Cineplex
VIP Cinemas, Famous Players and Cinema City. Cineplex also owns and operates the
UltraAVX, Poptopia, and Outtakes brands. Cineplex trades on the Toronto Stock
Exchange under the symbol CGX. More information is available at cineplex.com.


Further information can be found in the disclosure documents filed by Cineplex
with the securities regulatory authorities, available at www.sedar.com. 


You are cordially invited to participate in a teleconference call with the
management of Cineplex (TSX:CGX) to review our quarterly results.  Ellis Jacob,
President and Chief Executive Officer and Gord Nelson, Chief Financial Officer,
will host the call. The teleconference call is scheduled for:




                          Thursday, August 8, 2013                          
                           10:00 a.m. Eastern Time                          



In order to participate in the conference call, please dial 416-644-3418 or
outside of Toronto dial 1-800-814-4861 at least five to ten minutes prior to
10:00 a.m. Eastern Time. Please quote the conference ID 4630857 to access the
call.




--  If you cannot participate in the live mode, a replay will be available.
    Please dial 416-640-1917 or 1-877-289-8525 and enter code 4630857#. The
    replay will begin at 12:00 p.m. Eastern Time on Thursday, August 8, 2013
    and end at 11:59 p.m. Eastern Time on Thursday, August 15, 2013. 

--  Note that media will be participating in the call in listen-only mode. 

--  Thank you in advance for your interest and participation. 

Cineplex Inc.                                                               
Consolidated Balance Sheets                                                 
(unaudited)                                                                 
(expressed in thousands of Canadian dollars)                                
----------------------------------------------------------------------------
                                                                            
                                                    June 30,   December 31, 
                                                        2013           2012 
Assets                                                                      
                                                                            
Current assets                                                              
Cash and cash equivalents                      $      28,788  $      48,665 
Trade and other receivables                           55,559         77,278 
Inventories                                            5,344          5,193 
Prepaid expenses and other current assets             14,362          3,047 
                                              ------------------------------
                                                                            
                                                     104,053        134,183 
                                                                            
Non-current assets                                                          
Property, equipment and leaseholds                   416,226        418,498 
Deferred income taxes                                 41,254         53,528 
Fair value of interest rate swap agreements            1,176              - 
Interests in joint ventures                           42,997         41,623 
Intangible assets                                     72,622         78,460 
Goodwill                                             612,170        608,929 
                                              ------------------------------
                                                                            
                                               $   1,290,498  $   1,335,221 
                                              ------------------------------
                                              ------------------------------
Liabilities                                                                 
                                                                            
Current liabilities                                                         
Accounts payable and accrued expenses          $     115,391  $     129,499 
Share-based compensation                              10,023              - 
Dividends payable                                      7,541          7,063 
Income taxes payable                                   2,343         13,654 
Deferred revenue                                      83,595        106,253 
Finance lease obligations                              2,304          2,222 
Fair value of interest rate swap agreements              614            513 
                                              ------------------------------
                                                                            
                                                     221,811        259,204 
                                              ------------------------------
                                                                            
Non-current liabilities                                                     
Share-based compensation                              10,575         12,223 
Long-term debt                                       148,325        148,066 
Fair value of interest rate swap agreements                -            273 
Finance lease obligations                             19,375         20,548 
Post-employment benefit obligations                    6,394          6,274 
Other liabilities                                    141,172        141,319 
                                              ------------------------------
                                                                            
                                                     325,841        328,703 
                                              ------------------------------
                                                                            
Total liabilities                                    547,652        587,907 
                                              ------------------------------
                                                                            
Equity                                                                      
                                                                            
Share capital                                        848,235        847,235 
Deficit                                             (108,539)      (102,547)
Accumulated other comprehensive loss                    (666)        (1,142)
Contributed surplus                                    3,816          3,768 
                                              ------------------------------
                                                                            
                                                     742,846        747,314 
                                              ------------------------------
                                                                            
                                               $   1,290,498  $   1,335,221 
                                              ------------------------------
                                              ------------------------------
                                                                            
Cineplex Inc.                                                               
Consolidated Statements of Operations                                       
(unaudited)                                                                 
(expressed in thousands of Canadian dollars, except net income per share)   
----------------------------------------------------------------------------
                                                                            
                                   Three months ended      Six months ended 
                                             June 30,              June 30, 
                                --------------------------------------------
                                      2013       2012       2013       2012 
                                                                            
Revenues                                                                    
Box office                       $ 174,383  $ 156,226  $ 319,548  $ 305,639 
Concessions                         89,693     79,962    165,572    156,999 
Other                               37,556     27,486     64,582     50,014 
                                --------------------------------------------
                                                                            
                                   301,632    263,674    549,702    512,652 
                                --------------------------------------------
                                                                            
Expenses                                                                    
Film cost                           92,973     83,465    166,362    160,172 
Cost of concessions                 19,173     16,720     35,447     32,490 
Depreciation and amortization       16,527     14,678     33,825     31,151 
Loss on disposal of assets           1,314        727      2,376        672 
Other costs                        131,875    116,996    259,408    232,965 
Share of income of joint                                                    
 ventures                           (1,216)    (1,103)    (1,757)    (1,430)
Interest expense                     1,998      3,612      3,714      7,996 
Interest income                        (59)       (23)      (137)      (103)
                                --------------------------------------------
                                                                            
                                   262,585    235,072    499,238    463,913 
                                --------------------------------------------
                                                                            
Income before income taxes          39,047     28,602     50,464     48,739 
                                --------------------------------------------
                                                                            
Provision for (recovery of)                                                 
 income taxes                                                               
Current                              1,926      7,946      1,199     13,588 
Deferred                             8,578       (304)    11,906       (917)
                                --------------------------------------------
                                                                            
                                    10,504      7,642     13,105     12,671 
                                --------------------------------------------
                                                                            
Net income                       $  28,543  $  20,960  $  37,359  $  36,068 
                                --------------------------------------------
                                --------------------------------------------
                                                                            
                                                                            
Basic net income per share       $    0.45  $    0.34  $    0.60  $    0.60 
Diluted net income per share     $    0.45  $    0.34  $    0.59  $    0.60 
                                                                            
Cineplex Inc.                                                               
Consolidated Statements of Comprehensive Income                             
(unaudited)                                                                 
(expressed in thousands of Canadian dollars)                                
----------------------------------------------------------------------------
                                                                            
                                   Three months ended      Six months ended 
                                             June 30,              June 30, 
                                --------------------------------------------
                                      2013       2012       2013       2012 
                                                                            
Net income                       $  28,543  $  20,960  $  37,359  $  36,068 
                                --------------------------------------------
                                                                            
Other comprehensive income                                                  
 (loss)                                                                     
Items that may be reclassified                                              
 subsequently to net income:                                                
Income (loss) on hedging                                                    
 instruments                         1,610     (1,063)       844      2,261 
Associated deferred income taxes                                            
 (expense) recovery                   (479)       195       (368)      (715)
                                --------------------------------------------
                                                                            
Other comprehensive income                                                  
 (loss)                              1,131       (868)       476      1,546 
                                --------------------------------------------
                                                                            
Comprehensive income             $  29,674  $  20,092  $  37,835  $  37,614 
                                --------------------------------------------
                                --------------------------------------------
                                                                            
Cineplex Inc.                                                               
Consolidated Statements of Changes in Equity                                
(unaudited)                                                                 
(expressed in thousands of Canadian dollars)                                
For the six months ended June 30, 2013 and 2012                             
----------------------------------------------------------------------------
                                                                            
                                          Accumulated                       
                                                other                       
                    Share  Contributed  comprehensive                       
                  capital      surplus           loss    Deficit      Total 
                                                                            
Balance -                                                                   
 January 1, 2013 $847,235  $     3,768  $      (1,142) $(102,547) $ 747,314 
                                                                            
Net income              -            -              -     37,359     37,359 
Other                                                                       
 comprehensive                                                              
 income                 -            -            476          -        476 
                ------------------------------------------------------------
Total                                                                       
 comprehensive                                                              
 income                                           476     37,359     37,835 
Dividends                                                                   
 declared               -            -              -    (43,351)   (43,351)
Long-term                                                                   
 incentive plan                                                             
 obligation           248            -              -          -        248 
Share option                                                                
 expense                -          800              -          -        800 
Issuance of                                                                 
 shares on                                                                  
 exercise of                                                                
 options              752         (752)             -          -          - 
                ------------------------------------------------------------
                                                                            
Balance - June                                                              
 30, 2013        $848,235  $     3,816  $        (666) $(108,539) $ 742,846 
                ------------------------------------------------------------
                ------------------------------------------------------------
                                                                            
Balance -                                                                   
 January 1, 2012 $764,801  $         -  $      (2,723) $(140,469) $ 621,609 
                                                                            
Share option                                                                
 liabilities                                                                
 reclassified           -        6,850              -          -      6,850 
Net income              -            -              -     36,068     36,068 
Other                                                                       
 comprehensive                                                              
 income                 -            -          1,546          -      1,546 
                ------------------------------------------------------------
Total                                                                       
 comprehensive                                                              
 income                                         1,546     36,068     37,614 
Dividends                                                                   
 declared               -            -              -    (39,601)   (39,601)
Long-term                                                                   
 incentive plan                                                             
 obligation        (5,324)           -              -          -     (5,324)
Long-term                                                                   
 incentive plan                                                             
 shares             6,471            -              -          -      6,471 
Share option                                                                
 expense                -        1,206              -          -      1,206 
Issuance of                                                                 
 shares on                                                                  
 exercise of                                                                
 options            5,334       (5,334)             -          -          - 
Issuance of                                                                 
 shares on                                                                  
 conversion of                                                              
 debentures        58,173            -              -          -     58,173 
Issuance of                                                                 
 shares for cash      501            -              -          -        501 
Shares                                                                      
 repurchased and                                                            
 cancelled           (936)           -              -       (850)    (1,786)
                ------------------------------------------------------------
                                                                            
Balance - June                                                              
 30, 2012        $829,020  $     2,722  $      (1,177) $(144,852) $ 685,713 
                ------------------------------------------------------------
                ------------------------------------------------------------
                                                                            
Cineplex Inc.                                                               
Consolidated Statements of Cash Flows                                       
(unaudited)                                                                 
(expressed in thousands of Canadian dollars)                                
----------------------------------------------------------------------------
                                                                            
                                   Three months ended      Six months ended 
                                             June 30,              June 30, 
                                --------------------------------------------
                                      2013       2012       2013       2012 
Cash provided by (used in)                                                  
                                                                            
Operating activities                                                        
Net income                       $  28,543  $  20,960  $  37,359  $  36,068 
Adjustments to reconcile net                                                
 income to net cash provided by                                             
 operating activities                                                       
  Depreciation and amortization                                             
   of property, equipment and                                               
   leaseholds, and intangible                                               
   assets                           16,527     14,678     33,825     31,151 
  Amortization of tenant                                                    
   inducements, rent averaging                                              
   liabilities and fair value                                               
   lease contract liabilities       (1,708)    (1,230)    (3,277)    (2,165)
  Accretion of debt issuance                                                
   costs and other non-cash                                                 
   interest                            260        139        401        279 
  Loss on disposal of assets         1,314        727      2,376        672 
  Deferred income taxes              8,578       (304)    11,906       (917)
  Interest rate swap agreements                                             
   - non-cash interest                (234)       848       (569)     1,764 
  Non-cash share-based                                                      
   compensation                        391        560      1,047      1,242 
  Accretion of convertible                                                  
   debentures                            -         84          -        256 
  Net change in interests in                                                
   joint ventures                     (117)      (287)      (825)     5,666 
Tenant inducements                     348      1,948      3,305      5,245 
                                    20,542    (12,154)   (17,901)   (52,168)
                                --------------------------------------------
                                                                            
Net cash provided by operating                                              
 activities                         74,444     25,969     67,647     27,093 
                                --------------------------------------------
                                                                            
Investing activities                                                        
Proceeds from sale of assets             2          9          2      1,129 
Purchases of property, equipment                                            
 and leaseholds                    (17,294)   (19,702)   (34,191)   (33,715)
Acquisition of business, net of                                             
 cash acquired                           -          -     (3,822)    (7,399)
Deposit for business acquisition    (5,000)    (5,000)         -          - 
Additional equity funding of                                                
 joint ventures                       (403)         -       (549)      (244)
                                --------------------------------------------
                                                                            
Net cash used in investing                                                  
 activities                        (22,695)   (19,693)   (43,560)   (40,229)
                                --------------------------------------------
                                                                            
Financing activities                                                        
Dividends paid                     (21,682)   (20,064)   (42,873)   (38,931)
(Repayments) borrowings under                                               
 credit facility, net              (15,000)    20,000          -     20,000 
Payments under finance leases         (551)      (512)    (1,091)    (1,053)
Proceeds from issuance of shares         -          -          -        501 
Shares repurchased and cancelled         -          -          -     (1,786)
                                --------------------------------------------
                                                                            
Net cash used in financing                                                  
 activities                        (37,233)      (576)   (43,964)   (21,269)
                                --------------------------------------------
                                                                            
Increase (decrease) in cash and                                             
 cash equivalents                   14,516      5,700    (19,877)   (34,405)
                                                                            
Cash and cash equivalents -                                                 
 Beginning of period                14,272     10,040     48,665     50,145 
                                --------------------------------------------
                                                                            
Cash and cash equivalents - End                                             
 of period                       $  28,788  $  15,740  $  28,788  $  15,740 
                                --------------------------------------------
                                --------------------------------------------
                                                                            
Supplemental information                                                    
Cash paid for interest           $   1,989  $   2,930  $   3,847  $   5,472 
Cash paid for income taxes       $     311  $   6,482  $  12,510  $  24,602 
                                                                            
                                                                            
Cineplex Inc.                                                               
Consolidated Supplemental Information                                       
(Unaudited)                                                                 
(expressed in thousands of Canadian dollars)                                
----------------------------------------------------------------------------



Reconciliation to Adjusted EBITDA 



----------------------------------------------------------------------------
                                     Three months ended    Six months ended 
                                               June 30,            June 30, 
                                         2013      2012      2013      2012 
                                    ----------------------------------------
Net income                           $ 28,543  $ 20,960  $ 37,359  $ 36,068 
                                                                            
Depreciation and amortization          16,527    14,678    33,825    31,151 
Interest expense                        1,998     3,612     3,714     7,996 
Interest income                           (59)      (23)     (137)     (103)
Current income tax expense              1,926     7,946     1,199    13,588 
Deferred income tax expense             8,578      (304)   11,906      (917)
                                    ----------------------------------------
                                                                            
EBITDA                               $ 57,513  $ 46,869  $ 87,866  $ 87,783 
                                                                            
Loss on disposal of assets              1,314       727     2,376       672 
CDCP equity income (i)                   (779)     (851)   (1,112)     (926)
Depreciation and amortization -                                             
 joint ventures (ii)                      562       518     1,081       873 
Future income taxes - joint ventures                                        
 (ii)                                      72         -       145         - 
Current income taxes - joint                                                
 ventures (ii)                             29         -        45         - 
                                    ----------------------------------------
                                                                            
Adjusted EBITDA                      $ 58,711  $ 47,263  $ 90,401  $ 88,402 
----------------------------------------------------------------------------
(i)  CDCP equity income not included in adjusted EBITDA as CDCP is a        
     limited-life financing vehicle that is funded by virtual print fees    
     collected from distributors.                                           
(ii) Includes the joint ventures with the exception of CDCP (see (i) above).



Components of Other Costs 



----------------------------------------------------------------------------
Other costs                        Second Quarter              Year to Date 
                        ----------------------------------------------------
                             2013     2012 Change      2013     2012 Change 
----------------------------------------------------------------------------
                                                                            
Theatre occupancy                                                           
 expenses                $ 46,826 $ 41,182   13.7% $ 93,384 $ 82,890   12.7%
Other operating expenses   68,449   62,444    9.6%  132,917  120,979    9.9%
General and                                                                 
 administrative expenses   16,600   13,370   24.2%   33,107   29,096   13.8%
                        ----------------------------------------------------
Total other costs        $131,875 $116,996   12.7% $259,408 $232,965   11.4%
----------------------------------------------------------------------------
                                                                            
Cineplex Inc.                                                               
Consolidated Supplemental Information                                       
(Unaudited)                                                                 
(expressed in thousands of Canadian dollars, except number of shares and per
share data)                                                                 
----------------------------------------------------------------------------



Adjusted Free Cash Flow



----------------------------------------------------------------------------
                               Three months ended          Six months ended 
                                         June 30,                  June 30, 
                                2013         2012         2013         2012 
                        ----------------------------------------------------
                                                                            
Cash provided by                                                            
 operating activities    $    74,444  $    25,969  $    67,647  $    27,093 
Less: Total capital                                                         
 expenditures net of                                                        
 proceeds on sale of                                                        
 assets                      (17,292)     (19,693)     (34,189)     (32,586)
                        ----------------------------------------------------
                                                                            
Standardized free cash                                                      
 flow                         57,152        6,276       33,458       (5,493)
                                                                            
Add/(Less):                                                                 
Changes in operating                                                        
 assets and liabilities                                                     
 (i)                         (20,542)      12,154       17,901       52,168 
Changes in operating                                                        
 assets and liabilities                                                     
 of joint ventures (i)        (1,099)        (816)        (932)      (7,096)
Tenant inducements (ii)         (348)      (1,948)      (3,305)      (5,245)
Principal component of                                                      
 finance lease                                                              
 obligations                    (551)        (512)      (1,091)      (1,053)
Growth capital                                                              
 expenditures and other                                                     
 (iii)                        10,890       13,595       22,924       23,369 
Share of income of joint                                                    
 ventures, net of non-                                                      
 cash depreciation (iv)        1,071          770        1,871        1,377 
Cash invested in CDCP                                                       
 (iv)                           (403)           -         (549)        (244)
                        ----------------------------------------------------
                                                                            
Adjusted free cash flow  $    46,170  $    29,519  $    70,277  $    57,783 
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
Average number of Shares                                                    
 outstanding              62,844,730   61,289,181   62,824,336   60,868,454 
                                                                            
Adjusted free cash flow                                                     
 per Share               $    0.7347  $    0.4816  $    1.1186  $    0.9493 
----------------------------------------------------------------------------
(i)   Changes in operating assets and liabilities are not considered a      
      source or use of adjusted free cash flow.                             
(ii)  Tenant inducements received are for the purpose of funding new theatre
      capital expenditures and are not considered a source of adjusted free 
      cash flow.                                                            
(iii) Growth capital expenditures and other represent expenditures on Board 
      approved projects as well as any expenditures for digital equipment   
      that was contributed to CDCP, exclude maintenance capital             
      expenditures, and are net of proceeds on asset sales. Cineplex's      
      revolving facility is available to fund Board approved projects.      
(iv)  Excludes the share of income of CDCP, as CDCP is a limited-life       
      financing vehicle funded by virtual print fees collected from         
      distributors. Cash invested into CDCP, as well as cash distributions  
      received from CDCP, are considered to be uses and sources of adjusted 
      free cash flow.                                                       



FOR FURTHER INFORMATION PLEASE CONTACT: 
Cineplex Inc.
Gord Nelson
Chief Financial Officer
(416) 323-6602


Cineplex Inc.
Pat Marshall
Vice President Communications and Investor Relations
(416) 323-6648
www.cineplex.com