Investor Presentation

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Investor Presentation Mike Campbell, Kurt Hall
Amy Miles
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Forward-looking Statements
This presentation includes forward-looking
statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than
statements of historical fact, included herein
may constitute forward-looking statements.
Although the Company believes that the
expectations reflected in such forward-looking
statements are reasonable, it can give no
assurance that such expectations will prove to be
correct. Important factors that could cause
actual results to differ materially from the
Companys expectations are disclosed in the risk
factors contained in the Companys prospectus
dated May 8, 2002. All forward-looking
statements are expressly qualified in the
entirety by such factors.
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Overview of Regal Entertainment Group
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Investment Highlights
Steady Industry Growth Solid Fundamentals
Exciting Growth Opportunities
Industry Leading Theatre Operations
Strong Free Cash Flow Dividend
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Steady Industry Growth Solid Industry
Fundamentals
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Positive Industry Rationalization

• 95 - 99 Unprecedented Screen Growth
• 00 - 02 Major Reduction of 1800 Screens
• 2002 No New Box, Reduced New Developments

Screen Count Year over Year Growth
Screen Reduction Driving Box Office per Screen
Source NATO
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Consistent Growth in Demand

• Healthy Attendance Trends
• 3 CAGR over last 10 years
• Growth in 3 of the last 5 recessions
• 1.5 billion patrons in 2001, up 5
• Consistent Box Office Growth
• 10th consecutive record year
• 8.4 billion in 2001, up 10
• Stable Annual Price Increases
• 3 CAGR over the last 10 years

Source NATO
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Beneficiary of Fundamental Patterns Upcoming
Film Calendar
Solid Fundamentals

• Extended Release Calendar
• Staggering releases reduces head-to-head
  competition, reduces seasonality and broadens
  patron traffic
• Increased Breadth of Films
• Increasing appeal to a wider demographic
• Increased Emphasis on Theatrical Success
• Marketing Expenditures by Studios increasing at a
  10 CAGR since 1995

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Beneficiary of Fundamental Patterns Upcoming
Film Calendar
Solid Fundamentals

• Extended Release Calendar
• Staggering releases reduces head-to-head
  competition, reduces seasonality and broadens
  patron traffic
• Increased Breadth of Films
• Increasing appeal to a wider demographic
• Increased Emphasis on Theatrical Success
• Marketing Expenditures by Studios increasing at a
  10 CAGR since 1995

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Industry Leading Theatre Operations
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National, Geographically Diverse Footprint
Largest Domestic Exhibitor
5,711 Screens
23 Market Share
530 Theatres
As of 9/26/02
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Improved Experience Driving Demand

• Rationalized Theatre Portfolio
• 61 Screens Built Since 1997
• 60 Feature Stadium Seating
• 10.5 Screens / Theatre
• 75 Theatres with 10 Screens
• 9 of Top 10, 23 of Top 25 DMAs

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20 EBITDA Margins

• Superior Operations Management
• Lower rent and occupancy costs
• Effective controls on theatre-level costs
• National contracts and scale drive margins

Leading EBITDA Margins
Industry Includes AMC, Carmike, Loews and
Cinemark.
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Proven Ability to Integrate Acquisitions

• 11 Successful Acquisitions Since 1995

Theatre-Level Cash Flow Margin
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Steady Industry Growth

• On-track to realize 30 - 40 million of
  synergies
• GA reductions
• Concession synergies
• Reductions in advertising expense and other
  theatre operating costs
• Expect continued benefits during the first half
  of 2003

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Simple Growth Strategy

• Continue Core Theatre Business Momentum
• Increase Theatre Margins
• Capitalize on Consolidation Opportunities
• Pursue High Margin Ancillary Business
  Opportunities

Generating significant Free Cash Flow
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Regal CineMedia
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Unique National Digital Theatre Network

• First of Its Kind
• Internally Funded
• Initially Focused on Digital Advertising
• Valuable Long-Term Platform
• Complementary programming
• Digital projectors

Transforming the Theatre into a Unique
Advertising, Promotional and Communications
Platform
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RCMs Competitive Advantages

• Dedicated Focus on Complementary New Business
  Opportunities
• High level management, sales and advertising
  expertise
• Direct Control of Theatre Venues and Patron Data
• Ability to create of wider variety of products
  and services
• Better control of delivery of advertising and
  promotional services
• Attendance data enables capture of valuable
  in-depth research
• Existing Technology Platform Ready
• Network operating center in use
• Satellite delivery of digital content implemented
  in initial theatres
• Sales, distribution and billing software
  installed
• On-going linking of theatres to network
  represents simple connection process

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Advertising Revenue Opportunity

• Theatres Provide Better Recall
• High impact
• Captive audience
• Increasing Fragmentation Among Traditional
  Mediums
• Advertisers Seeking New Platforms to Create
  Consumer Touchpoints

Small Shift in Ad Spending
50 - 70EBITDA Margins
Large Impact on EBITDA


CPMs
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1 Market Share in Top DMAs
DMAs National Box Regal Market Share New
York / LA 17.7
Top 10 40.3 Top 25
62.1 Top 50
77.7
1
1
1
1
Source EDI
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Financial Overview
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Revenue and EBITDA Performance
Pro Forma for the combination of Regal, Edwards
and UA Excludes results of theatres closed in
connection with reorganizations 2001 excludes
the 53rd week in UAs fiscal year - 17.9m of
revenues and 7.3m of EBITDA.
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2002 EBITDA Margin Growth
Regal Improving EBITDA Margins in 2002 vs. 2001

• Strong box office growth coupled with maximizing
  operating leverage
• Realized integration synergies

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Conservative Leverage and Excellent Liquidity
Conservative Capital Structure

1. As of 11/1/02
2. Net Debt Leases / EBITDAR 3.5x

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Strong Free Cash Flow
( in millions)
Significant Free Cash Flow Funds Growth
Opportunities

1. Excludes 2002 reorganization payments of
   approximately 81 million

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Financial Flexibility for Growth Strategy

Conservative Capitalization
200M Annual Free Cash FlowBefore Dividend
Flexibility to Execute Growth Strategy

• Capitalize on prudent acquisition opportunities
• Pursue high margin ancillary business
• Make selective investments in asset base
• Provide incremental returns through dividends

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