(11/03/2005) KINEPOLIS GROUP: EUR 6.5 million net profit in 2004 up from E 2.7m in 2003

Brussel, 11 March 2005 Kinepolis Group ended 2004 with a net profit of E 6.5 m (up E 3.8 m on 2003) and a net current profit of E 8.3m (up E 5.3m), despite low audience increases, and beating its forecast of doubled profits. This profit hike reflects consistent cost control and a reduction of financial charges.

EUR mill.	2004	2003	VAR.	LIKE-FOR-LIKE (*)
				2004	2003	VAR.
Audience figures (mill.)	24.5	24.2	+1.2%	24.2	23.7	+2.0%
Total turnover	203.4	198.1	+2.7%	201.4	193.9	+3.9%
Total turnover from cinema operations	191.6	186.9	+2.5%	189.7	182.8	+3.8%
EBITDA [1]	42.9	42.7	+0.3%	43.1	42.5	+1.4%
Operating profit (EBIT)	16.2	14.4	+11.9%	16.6	14.6	+13.5%
Financial result	-6.7	-10.8	+37.7%
Profit/loss on ordinary activities	9.4	3.6	+160.0%
Extraordinary result	1.6	2.2	-26.9%
Pre-tax profit/loss	11.0	5.8	+89.3%
Taxes and deferred tax liabilities	-4.4	-3.7	-18.9%
Consolidated net profit/loss	6.6	2.1	+214.9%
Consolidated net result of the Group	6.5	2.7	+140.2%
Net current profit/loss[2]	8.3	3.0	+178.8%
Net current profit loss of the Group	8.3	3.6	+130.3%
Net financial debts [3]	147.1	151.0	-2.6%

(*) On a like-for -like basis, i.e. excluding the contributions from units sold, liquidated, opened or closed in 2004 and 2003: CinecityTreviso (Italy, May '03), RMBe, RUM and Frontine (Belgium, June '03), Max Linder (France, February '04), Kinepolis Granada (Spain, June '04). The like-for-like figures do not reflect the increase in the shareholding in Forum Kinepolis Nîmes in 2003 and the closing of the Opéra complex in Liège. [1] Ebitda Operating profit before depreciation, amortization, reductions in value and provisions [2] Net current profit of 2004 included E 0.5m of income from sale of own shares [3] Net financial debt position: financial debts less the GIMV subordinated loans (balance 2003: E 7.4m; balance 2004: E 10.4m), cash at bank and in hand and short-term investments First and second half results In 2004 audience figures, together with total turnover, EBITDA, EBIT and profit from ordinary activities were evenly balanced over the two halves of the year. This is mainly due to the very balanced distribution of the film offering over the two halves. This contrasts with 2003, where an unusually strong 4th quarter generated 30% of annual audience figures. Despite the postponement of several major films, and a number of one-off costs for ERP applications, the transition to IFRS and the refinancing operation, operating results for the second half of 2004 came out slightly ahead of expectations. The extraordinary profit (mainly from real estate activities) was concentrated in the first half of 2004, which is why the consolidated net profit for the second half is lower than for the first half.

EUR millions	2004		2003
	H2	H1	H2	H1
Audience figures (mill.)	12.4	12.1	12.6	11.6
Total turnover	102.8	100.6	105.9	92.2
EBITDA	22.6	20.3	26.6	16.1
Operating profit (EBIT)	8.6	7.6	11.9	2.5
Profit on ordinary activities	4.8	4.6	7.5	-3.9
Extraordinary result	-0.4	2.0	0.05	2.2
Consolidated net profit	2.6	4.0	4.4	-2.3

Audience figures In 2004 Kinepolis Group welcomed 24.5m viewers to its cinema complexes. On a like-for-like basis (*) this represents a growth of +2% compared with 2003. January to August 2004 were top months with a strong film line-up. Top films for all Kinepolis complexes together were 'Harry Potter and the Prisoner of Azkaban', 'Shrek 2' and 'Troy. After that there were no real box office hits. The 2004 year-end season could not match the same period in 2003 with blockbusters like 'Finding Nemo', 'Lord of the Rings 3' and 'De Zaak Alzheimer' (The Alzheimer Case). . The greatest progress was achieved by Kinepolis Poznan (Poland), with growth of +20% compared with 2003, due to the improvement of the Polish economy and the success of 'The Passion of the Christ'. The extension of public transport services in the region also made the complex much more accessible. . . The French complexes increased their shares of local French markets. A +10% rise in audience figures on a like-for-like basis is due to a superb French film line-up with top films like 'Les Choristes' and 'Un long Dimanche de Fiancailles' . In Belgium, construction work on the Antwerp ringroads, impairing access to the Metropolis, placed a temporary halt on growth (-2.5%). . Spanish ticket sales like-for-like stagnated (-1%). Including audiences at the newest Kinepolis complex in Granada (opened in June 2004), ticket sales were nonetheless up +5%. Kinepolis Granada welcomed fewer visitors that expected owing to delays by project developer Detea-Comercia in developing leisure facilities around the complex. . Audience figures at Kinepolis Schaffhausen fell by -5%, in line with the general market, with a weak film offering depressing ticket sales in the German-speaking part of Switzerland. Turnover and operating income Total operating income of E 203.4 million is up +2.7%, or +3.9% on a like-for-like basis. 63% of operating income came from ticket sales, 20% from the sale of food, beverages and other consumer items, and 13% from media sales (events, screen advertising, etc.). . Turnover from cinema activities rose like-for-like by +3.8%. Tickets, food, beverages and media sales (events, screen advertising, etc.) all developed positively. . Film distribution turnover (Kinepolis Film Distribution) was down -35% on 2003. Unlike 2003, which proved an exceptional year with films like 'Gangs of New York', 'Team Spirit 2' and 'De Zaak Alzheimer' (the Alzheimer case), 2004 brought few outstanding releases. Front runners were 'Scary Movie 3' and 'Kill Bill 2'. EBITDA EBITDA rose by +0.3% to E 42.9 million (2003: E 42.7 million), or +1.4% on a like-for-like basis. EBITDA was positively influenced by the good audience figures in Poland and France and by well-targeted cost saving plans in the different countries. Moderate visitor figures in Belgium, Spain and Switzerland, and the costs of implementing the ERP, IFRS and Balanced Scorecard software systems had a downward effect on EBITDA. The relative EBITDA margin (EBITDA/operating income) was 21.1% (2003: 21.6%), or 21.2% on a like-for-like basis. Operating profit (EBIT) Operating profit rose by +11.9% to E 16.2m (2003: E 14.4m), or +13.5% on a like-for-like basis. . Depreciation charges (including goodwill amortization) were down E 0.9m to E 26.7m, including E0.4m relating to the divestment from Cinecity Treviso (Italy) and Max Linder (France). . Analysts are reminded that the 2003 figures included a E 0.9m write-back of a contractor's claim in Poland. The relative EBIT margin (EBIT/operating income) was 7.94% (2003: 7.29%), or 8.2% on a like-for-like basis. Financial result At E-6.7m, the financial result for 2004 is considerably better than in 2003 (-E10.8m). . With reducing debt levels and lower interest rates, debt servicing charges fell by -31% to E7.0 m (2003: E 10.1m). . Realised foreign currency translation losses and hedging costs together amounted to E 0.8m (2003: E 1.6m). . A capital gain of E 0.5% was realised on the sale of own shares. Own shares in portfolio represented a latent capital gain of E 1.5m at the end of 2004. Profit/loss on ordinary activities The profit/loss on ordinary activities rose by E 5.8m to E 9.4m (2003: E 3.6m). Extraordinary result The extraordinary result of E1.6m relates primarily to real estate developments at various cinema sites: . capital gains on the sale in 2004 of various plots at Granada (Spain) . a capital gain on the sale of a plot in Nîmes (France) in July 2004 . a capital loss on the sale of a plot in Stockholm (Sweden) in October 2004. Taxes and deferred tax liabilities Better earnings had the effect of raising taxes and deferred taxes by together E 0.7m to E 4.4m (2003: E 3.7m). Among other things,the tax shelter programme contributed to reducing average tax pressure to 40% (2003: 64%). In 2003 a change in the valuation rules permitted the reversal of E 0.4m of deferred tax liability. Consolidated net profit The consolidated net profit amounts to E 6.6m. This is more than three times the 2003 figure (2003: E 2.1m). Consolidated net profit of the Group rose by E3.8m to E 6.5 m (2003: E 2.7m), beating the forecast doubling of net profit. Net current profit of the Group rose by E4.7m to E 8.3 (2003: E 3.6m). Debt position The net financial debt position (financial debts less the GIMV subordinated loans (2003 balance: E 7.4m, 2004: 10.4m), cash at bank and in hand and short-term investments) fell from E 151.0m at 31.12.03 to E 147.1m at 31.12.04, despite the expansion investments at Granada and Nancy in 2004. With this debt position Kinepolis has reached its goal of a net debt/EBITDA ration of under 3.5. Syndicated Loan In November a E 175m syndicated loan was successfully concluded. This facility was placed internationally with banks with whom the bank has close connections. Fortis Bank SA/NV and KBC Bank NV were together the Mandated Lead Arrangers. The group itself took the initiative of negotiating credit facility, repayable over 7-years, in order to centralise various local borrowings. The proceeds of the facility are being used to refinance existing debt and for general corporate purposes. IFRS Under European regulations, Euronext requires companies in the "Next prime" and "Next Economy" segments to produce their consolidated accounts in conformity with IAS/IFRS as from January 1, 2005. The opening balance at 1 January 2004 was published in September 2004 along with the half-yearly results. The financial statements for 31 December 2004 according to IFRS rules are currently in preparation. Key events in 2004 . 2004 Sales of land plots in Granada as part of the real estate activities. . February 2004: - Sale of the Max Linder complex in Paris (France) - Purchase of land for the Kinepolis Nancy project (France) and start of building works - Creation of an internal divisional structure: Kinepolis Cinema and Kinepolis Real Estate. . March 2004: GIMV sells its 10% interest in Kinepolis Group to various institutional investors. . June 2004: - Reopening of the Palace cinema in downtown Liège following extensive renovation. - Opening of Kinepolis Granada . July 2004Sale of land in Nîme . October 2004: Sale of land in Stockholm . November 2004: - 1st digital projector in France (Kinepolis Lomme) - Successful closing of a E 175m syndicated loan . . January 2005: - Permanent Deputation approves the building permit for the Kinepolis Bruges project, with a 90 day appeal deadline. - Kinepolis's participation in CinemaxX reduces from 25% to 12.61% with the implementation of the capital increase (approved in 2004) following the entry of TMG as main shareholder. Kinepolis Group and digital cinema Kinepolis Group is one of a select group of cinemas in the world able to offer digital cinema. The Group today has a unique (for Europe) platform of 11 high resolution projectors in Belgium and France using the revolutionary DLP technology. Alongside Hollywood productions film fans can also experience alternative content in digital format, including screenings of prestige events, TV fiction serials, live concerts and sports competitions. . Digital full-length films, January 2004 - February 2005: 'Brother Bear', 'The Day after Tomorrow', 'Shrek 2' , 'I Robot', 'K3', 'The Incredibles', National Treasure, 'Saraband', 'Constantine' . February - April 2004: Successful digital pre-premières of the 10-part VTM crime series 'Aspe' . February - April 2004: VTM news live daily at 19.00. . 4 July 2004: EURO 2004 football final live on the big screen at Kinepolis Brussels and Palace Liège. . 31 August 2004: digital launch event by VRT for the 6th series of the TV1 serial 'Flikken' at Kinepolis Ghent. . February 2005: digital special marking the 15th anniversary of the TV series 'FC De Kampioenen' by VRT in all Flemish Kinepolis complexes. . 5 March 2005: live satellite transmission of the Sioen concert to all digital Kinepolis theatres. Cinémanie In Belgium the new Cinémanie quality label has generated remarkable results. With "Cinémanie, looking at the other film better", Kinepolis Belgium is seeking to attract fans of authors' films from all over the world. Since the start of 2004 at least 1 Cinémanie film is shown daily in every Belgian complex. The Passion of the Christ, Lost in Translation and Fahrenheit 9/11 were the top 3 quality films. In 2005 Cinémanie is also being launched in foreign facilities. Guidance Given the further growth of Kinepolis Granada and with Kinepolis Nancy scheduled to open during the year, Kinepolis Group expects global audiences in excess of the 2004 figure of E 24.5m. The group continues its phased expansion programme and is developing its construction projects in Bruges and Ostend. Kinepolis is looking to further improve profitability in 2005. Dividend The Board of Directors will be proposing to the General Meeting of 20 May 2005 that it declare a gross dividend of E 0.29 per share (E1 981 013), more than double the 2003 amount (E 0.13 per share). Statutory Auditor's report CONFIRMATION INFORMATION PRESS RELEASE The Statutory Auditor, Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren - Reviseurs d'Entreprises, represented by Mr. L. Ruysen, confirms that the audit work, which is finished in substance, did not reveal any significant correction that should be made to the accounting information included in the press release. Antwerp, March 10, 2005 Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren, Statutory Auditor, represented by L. Ruysen Financial Diary - Friday 15 April 2005: Publication of 1Q audience figures Friday 20 May 2005: Kinepolis Group NV Annual General Meeting Friday 15 July 2005: Publication of 1st half 2005 audience figures Friday 16 September 2005: Publication of 2005 half-year results Friday 14 October 2005: Publication of 3Q 2005 audience figures Monday 9 January 2006: Publication of 2005 visitor figures Friday 14 April 2006: Publication of 1Q 2006 visitor figures Friday 10 March 2006: Publication of 2005 annual results Friday 19 May 2006: Kinepolis Group NV Annual General Meeting Contact: Myriam Dassonville Corporate Communication Tel: +32 2 474 26 91 E-mail: mdassonville@kinepolis.com © CompanynewsGroup