Rising Star Media Sells to Cinema Park

Rising Star Media Sells to Cinema Park

Russia's Most Profitable Theatre Chain is Acquired

MOSCOW, June 6, 2011 /PRNewswire/ -- Rising Star Media, Russia's most profitable theater chain which operates under the name Kinostar de Lux, was acquired last week by Cinema Park, the largest Russian cinema chain, a member of the ProfMedia group.

(Photo: http://photos.prnewswire.com/prnh/20110606/NE14621)

Chairman Shari Redstone and CEO Paul Heth together with investment banker Charlie Ryan of UFG Private Equity of Russia purchased Rising Star Media in 2009 from National Amusements, a top 10 U.S. exhibitor, of which Shari Redstone is president.

In her role at National Amusements, Redstone teamed with Heth to develop the Russian theater circuit in 2002. The Russian theater market had gone into a period of decline and the market was underscreened, underserved and lacked a quality movie going experience. The Rising Star Media team saw an opportunity to transform the industry and create an unparalleled luxury theatre experience. No U.S. or foreign operator was willing to take the risk to revamp the marketplace, except Redstone and Heth.

"I fell in love with the country within hours of my first visit to Moscow," said Redstone. I was deeply impressed with the energy and vibrancy of the Russian people and their love of entertainment--particularly their fascination with the movies. I knew immediately that Russia was a place that we needed to be and I am very proud of what we were able to accomplish there in such a short period of time."

"The fact that a Russian company with the stature of ProfMedia has acquired Rising Star is a true testament to what we have accomplished in this country," said Heth. "While it is bittersweet to relinquish our Kinostar de Lux theaters, we are proud of what we built and pleased that our audiences will continue to enjoy the ultimate Russian movie-going experience."

Rising Star Media has 75 screens between Moscow and St. Petersburg. They own the top 5 grossing cinemas in Russia and represent a significant portion of the Russian media market.

Cinema Park has become a dominant market leader in the Russian cinema segment. It is also a leader in the 3D space, both in terms of the box office and the number of 3D screens. Cinema Park is the largest IMAX partner in Europe. In 2010 Cinema Park served approximately 12 million patrons and the company's revenues totaled $120 million.

The transaction closed this month and the size of the private deal was not disclosed. Cinema Park did indicate in their release that Rising Star Media's revenues exceeded $100 million.

About Rising Star Media

Rising Star Media was founded in 2002 by Shari E. Redstone, President of National Amusements Inc. (NAI) and Paul Heth, CEO of Rising Star Media in partnership with - (NAI). The joint venture quickly became a significant player in the Russian theater scene. Alongside UFG Private Equity Fund II, Redstone and Heth acquired 100% ownership of Rising Star Media from - (NAI) at the end of 2009. Rising Star Media owns destination style, state-of-the-art luxury multiplex venues in Moscow and St. Petersburg operating under the brand name Kinostar de Lux. Four of the locations, three in Moscow and one in St. Petersburg, have state-of-the-art IMAX digital projection systems. In addition, all Rising Star locations are outfitted with RealD systems which, along with numerous other technological and operational innovations, have cemented Rising Star as a leader with a significant share of the Russian cinema market (www.kinostardelux.ru).

About Cinema Park

Cinema Park- the largest Russian theater chain was founded in 2002 by ProfMedia group. Now Cinema Park operates 20 movie theaters (169 screens) in fifteen of the largest cities of Russia. Cinema Park is the leader in digital film projection in Russia with 90 screens outfitted with the projectors for 3D films, including five IMAX cinema halls. All Cinema Park multiplexes are built in compliance with the SMPTE international certificate, the European technical specifications for a modern multiplex (www.cinemapark.ru).

About UFG Private Equity

UFG Private Equity is part of UFG Asset Management group, a leading Russian-region focused alternative asset manager advising on $1.5 billion in assets across debt and equity hedge funds, mutual funds, managed accounts, real estate/agriculture funds and traditional private equity funds (www.ufgam.com). UFG Private Equity funds invest in companies primarily in Russia as well as the neighboring CIS countries. UFG backs exceptional management teams in businesses with clear growth opportunities and where there is an opportunity to significantly increase equity value for shareholders. Since its inception in 2005, UFG Private Equity has participated in 18 investments with an aggregate transaction value of over $1 billion.

SOURCE Rising Star Media

Photo:http://photos.prnewswire.com/prnh/20110606/NE14621
http://photoarchive.ap.org/
Rising Star Media

CONTACT: Nancy J. Sterling, APR, ML Strategies, LLC, +1-617-348-1811, njsterling@mlstrategies.com

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