Loews Cineplex Completes $80 Million Sale of Its 50% Stake in Megabox

Loews Cineplex Completes $80 Million Sale of Its 50% Stake in Megabox

NEW YORK, Jan. 23 /PRNewswire-FirstCall/ -- Loews Cineplex Entertainment Corporation ("Loews") today announced that it has completed the sale of its 50% stake in Megabox Cineplex, Inc. ("Megabox" or the "Company"), a leading movie theatre operator in South Korea, to Standard Chartered Private Equity Limited ("SCPEL"), the private equity arm of Standard Chartered Bank, and Mediaplex, Inc. ("Mediaplex"), the leading movie distributor in South Korea. Loews will receive total proceeds of approximately $80 million from the sale.

Loews and Mediaplex founded Megabox in 1999 as a 50-50 joint venture. Since that time, Megabox has grown into one of the leading movie theatre operators in South Korea, with over 14 theatres and 117 screens under management today. Megabox's flagship theatre in the COEX mall is considered the most attended theatre in the world.

Travis Reid, President and CEO of Loews, said, "Megabox has been an excellent investment for Loews, and we are extremely proud of our successful partnership with Mediaplex. Since co-founding the company over six years ago, we have grown Megabox into one of Asia's premier theatre exhibitors, and this transaction represents a win for everyone involved. We are confident that SCPEL will continue to support this great partnership."

Karam Butalia, Global Head of SCPEL, said, "The Korean entertainment industry is poised to grow substantially over the coming years. Through this investment, we are well positioned to participate in the growing entertainment sector in Korea. Megabox has a great franchise backed by attractive business economics and is run by top quality management team, which is precisely what we are looking for. We will add value to this partnership by leveraging on the strong networks and financing capabilities of Standard Chartered Bank."

Sokho Jung, Korea Head of SCPEL, said, "SCPEL is pleased to become the partner of Mediaplex and Megabox. The Company has clearly created the premium brand in the multiplex theatre industry in Korea. Megabox has been the innovator in the Korean movie exhibition industry, introducing creative solutions to better serve its customers. We believe the Company will continue to play a key role in the growth of the Korean entertainment industry."

About Loews Cineplex Entertainment

Loews Cineplex Entertainment Corporation (http://www.enjoytheshow.com/) is the third largest movie theatre chain in the world, with 191 theatres and 2,169 screens worldwide and is privately held by Bain Capital, LLC; The Carlyle Group; and Spectrum Equity Investors. Loews' maintains operations in the U.S., Mexico and Spain. The company operates under the names of Loews Theatres, Cineplex Odeon, Star Theatres and Magic Johnson Theatres in the United States, as well as Cinemex in Mexico and Yelmo Cineplex in Spain.

About Standard Chartered

SCPEL is the private equity arm of Standard Chartered Bank. SCPEL typically invests in mid to late stage companies in need of expansion capital or acquisition finance, and in management buy-outs. SCPEL invests in companies located in Greater China, India, Korea and South East Asia. It is an active partner that provides board-level strategic advice and access to the international network of Standard Chartered Bank.

Standard Chartered Bank is one of the world's most international banks, employing over 40,000 people, representing 80 nationalities, across its network. Standard Chartered operates in over 1,200 locations in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdon and Americas. Standard Chartered Bank acquired Korea First Bank, one of the major commercial banks in Korea, in 2005 and renamed it SC First Bank.

About Megabox

Megabox is one of the leading movie theatre operators in South Korea. Founded as a joint venture between Mediaplex and Loews in 1999, the Company has grown to managing 14 theatres and 117 screens in 2005. Megabox COEX theatre, which was launched as the flagship theatre in 2000, is estimated to be the most attended theatre in the world. Megabox has since selectively expanded throughout the country.

About Mediaplex

Mediaplex is the leading domestic movie distributor in South Korea. In 2005, Mediaplex was the number one movie distributor in South Korea for domestically produced movies in terms of attendance. Mediaplex is owned by Orion Group, one of the leading confectionary companies in South Korea with a seventy-year long history. Orion is publicly listed and owns other media and entertainment related businesses.

Source: Loews Cineplex Entertainment Corporation

CONTACT: John McCauley, Senior Vice President, Marketing of Loews
Cineplex Entertainment, +1-646-521-6069

Web site: http://www.enjoytheshow.com/

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