Panavision Enters Into $345 Million Senior Secured Credit Facility

Panavision Enters Into $345 Million Senior Secured Credit Facility

-- Agreement Refinances Debt and Offers Capital for Continuing Growth --

WOODLAND HILLS, Calif., April 18 /PRNewswire/ -- Panavision announced today that the company has entered into a new $345 million Senior Secured Credit Facility to refinance existing debt obligations and provide the flexibility and capital needed for its future growth. The announcement was made today by Bob Beitcher, President and CEO of Panavision Inc. Credit Suisse and Bear Stearns acted as Joint Bookrunners and Co-Lead Arrangers of the new Senior Secured Credit Facility.

In addition to the Senior Secured Credit Facility, the Company also paid $15.0 million in cash and issued 49,792 shares of its Series F Cumulative Pay- In-Kind Mandatorily Redeemable Preferred Stock to PX Holding Corporation (the Company's majority shareholder) in consideration of the retirement of the outstanding principal balance of approximately $64.8 million under an existing term loan agreement. Further details of the transactions are provided in the Company's Form 10-K for the year ended December 31, 2005, available at www.sec.gov.

"The successful completion of this transaction provides Panavision with the financial resources and flexibility it needs to achieve its operational objectives and growth strategies. We are now well positioned to build upon our recent successes with the 2005 introduction of Genesis(R), our film-like digital camera, our expanding worldwide television activity, our new federal systems division, and the integration of acquisitions in our core business. There are lots of good reasons for us to be very excited about Panavision's future," said Beitcher.

Ronald O. Perelman, the Company's Chairman added, "Panavision continues to be the market leader and this credit facility ensures that the company will continue to provide the high-quality products and services that are synonymous with the Panavision brand."

Ross Landsbaum, EVP and CFO of Panavision said, "As a result of the refinancing, Panavision has lowered its cost of debt, increased its credit ratings, and obtained additional liquidity and flexibility to support its current operations and its growth strategy. The results of this transaction reflect excellent execution by Credit Suisse, Bear Stearns, and Panavision."

About Panavision (www.panavision.com)

Founded in 1954, Panavision Inc. is a leading designer and manufacturer of high-precision camera systems, including both film and digital cameras, and lenses and accessories for the motion picture and television industries. Panavision systems are rented through its domestic and internationally owned and operated facilities and distributor network. Panavision also supplies lighting, grip and crane equipment for use by motion picture and television productions.

Forward Looking Statements:

This press release contains forward-looking statements that reflect management's current assumptions and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Panavision cautions investors that forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those projected, stated, or implied by the forward- looking statements and investors are cautioned not to place undue reliance on any forward-looking statements. Statements other than statements of historical fact are forward-looking statements. These forward-looking statements may be identified by, among other things, the use of forward-looking language, such as the words, "believe," "anticipate," "expect," "intend," "may," "project," "scheduled to," "seek," "should," "will be," "will continue," "will likely result," or the negative of those terms, or other similar words or phrases or by discussions of intentions or strategies.

In addition to factors described in its Securities and Exchange Commission filings (including, without limitation, in Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2005, available at www.sec.gov) and elsewhere, the following factors could cause actual results to differ materially from those expressed in any forward-looking statements made by Panavision: (a) a significant reduction in the number of feature film, commercial or series television productions; (b) competitive pressures arising from changes in technology, changing customer requirements, price competition, evolving industry standards or improvements in and the expansion of product offerings of competitors; (c) unfavorable foreign currency fluctuations; (d) lower-than-expected cash flows from operations; (e) difficulties or delays in developing and introducing new products or failure of customers to accept new product offerings; (f) difficulties or delays in implementing improvements in operating efficiencies; (g) the inability to secure capital contributions or loans from affiliates, refinance indebtedness or sell equity securities; or (h) significant increases in interest rates.

Panavision encourages investors to read the Item 1A, "Risk Factors" as well as the summary of its critical accounting policies included in the Company's Form 10-K for the year ended December 31, 2005). Forward-looking statements speak only as of the date they are made, and except for its ongoing obligations under the U.S. federal securities laws, Panavision undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

Source: Panavision

CONTACT: Suzanne Lezotte, Panavision Inc., +1-818-316-2233,
Suzanne_lezotte@panavision.com; Matthew Hiltzik, Freud Communications, Inc.,
+1-212-582-9795, matthew.hiltzik@freud.com, for Panavision

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

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