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SBC buys up Warner Village 'to make the best better'

(London: May 13, 2003) SBC International Cinemas, the developer and operator of state-of-the-art cinemas, today announced its acquisition of the Warner Village Cinema chain in the UK. The purchase of 36 Warner Village sites nationwide boosts its number of multiplex cinemas from 6 to 42 overall with a total of 384 UK screens.

The deal involves the creation of an exciting new company called Vue (pronounced "View"). The new circuit will be completely rebranded over the next 6 months as Vue [logo available]. The new Vue cinema circuit immediately becomes the second largest in the country in terms of box office and the largest multiplex operator in the UK.

Boston Ventures, which founded SBC in 1998, is providing significant additional funding for the transaction and has been joined as equal partners by Clarity Partners and Legal & General Ventures. CIBC World Markets provided the debt financing for the acquisition.

J.Timothy Richards, President & CEO of Vue said: "Warner Village did a great job in constructing a very high quality portfolio of multiplex cinemas. We will continue to expand and enhance this platform to ensure that we have the leading, most modern and best equipped cinema circuit in the UK. The Vue brand will become synonymous with the best screens, the best sound and the best seating, to create the best possible cinematic experience. We will make sure this appeals to everyone by offering a greater variety and diverse range of films".

Barry Baker, Chairman of Vue said, "We are excited to back Tim and his management team in buying these high quality assets, backed by experienced media and leisure investors who are committed to the growth of this company and to its mission to deliver the best cinematic experience to consumers of all ages throughout the UK".

"Warner Village is the most modern cinema circuit in the UK and we look to innovate further and build on this very strong base. With cinema attendance expected to rise in the UK year on year, we look forward to exceptional growth for Vue Cinemas".

Millard Ochs, President, Warner Bros. International Cinemas said: "We are proud of the marketleading circuit we`ve built in the UK and are confident that under Vue`s experienced management team, the business will grow from strength to strength. Selling our interest at this time enables us to further our strategy of seeding new markets".