Palace Cinemas Adds Twelve 3D Digital Screens Across Central Europe for Monsters vs. Aliens in 3D Premiere

BUDAPEST, Hungary - Palace Cinemas announces the addition of twelve (12) 3D-capable digital
screens at its sites in Central Europe in the Czech Republic, Slovakia and
Hungary. Three will be in Prague, two in Brno, two in Bratislava and five in
Budapest in addition to the one in operation since December 2007. Eleven of
the sites will use the Masterimage 3D technology while Palace West End in
Budapest will add an additional Real D system. The Barco projectors and XDC
servers were provided through XDC and installed by Film-Ton-Technik (FTT).
Palace Cinemas’ first wide 3D premiere will be Monsters vs. Aliens, a
DreamWorks Animation production. There will be a special sneak-preview on 25
March at Palace Cinemas in the Czech Republic followed by a general release
in the Czech Republic and Slovakia on 26 March and Hungary on 2 April.

“We are extremely excited to bring to our customers the very best in
entertainment and 3D technology. It’s a revolutionary technology that will
radically change the business,” says V.J Maury, CEO of Palace Cinemas. He
adds, “Palace Cinemas was the first to introduce digital projection to its
markets in 2002. Our experience as an early-adopter of digital has given us
invaluable experience. Our current expansion ensures that filmgoers in all
our markets now have the opportunity to experience the many great new films
being released in 3D this year.”

Country Manager for Czech Republic David Horacek says, “We are eager to
build on our earlier experience and expand into both Prague and Brno.”
“We see an audience eager to experience 3D at both of our sites in
Bratislava,” notes Slovakia Country Manager Andrea Baisova. “We believe
Palace will have the best digital 3D offer in Hungary now with six screens
in Budapest,” comments Andrea Lovasz, Hungary Country Manager.

Palace Cinemas Central Europe is the leading cinema company in the Czech
Republic, Slovakia and Hungary with 20 sites and 170 screens, with plans for
further expansion. Palace Cinemas includes Palacemedia for cinema ad sales
and Palace Pictures for distribution. The company consistently leads the
market in new technologies including digital projectors, 3D, e-tickets, full
web services and its own management software End 2 End (E2E). Palace Cinemas
is dedicated to giving its customers a great night at the movies with its
commitment to People, Entertainment and Fun.

Palace Cinemas was founded in 1999 by Arthur Goldblatt and V.J Maury. It
is majority owned by funds managed by ARGUS Capital Group Limited (”ARGUS”),
a private equity fund manager focusing on Central and Eastern Europe. ARGUS
was established in 1998 and is supported by leading institutional investors
from Europe, North America, the Middle East, and Japan. With total
commitments of approx. Euro 400 million in its two funds, ARGUS has invested
in thirteen companies in the CEE region over the past ten years.

For additional information on Palace Cinemas, see www.palacecinemas.net.

Country Managers :
Palace Cinemas Czech Republic : David Horacek,
davidhoracek@palacecinemas.cz
Palace Cinemas Slovakia : Andrea Baisova, andreabaisova@palacecinemas.sk
Palace Cinemas Hungary : Andrea Lovasz, andrealovasz@palacecinemas.hu

Corporate:
CEO : V.J Maury, vjmaury@palacecinemas.net, GSM : +36203408676
CFO : David Jelinek, davidjelinek@palacecinemas.net
Tech Manager : Mark Waldman, markwaldman@palacecinemas.net
E2E/IT Manager : Greg Bridle, gregbridle@palacecinemas.net

Palace Cinemas Sites

Country Name City Screens Digital 3D 3D System
Screens
CZ Park Hostivar Prague 8 - -
CZ Slovansky Dum Prague 10 1 Masterimage
CZ Novy Smichov Prague 12 1 Masterimage
CZ Letnany Prague 8 1 Masterimage
CZ Olympia Brno 10 1 Masterimage
CZ Velky Spalicek Brno 7 1 Masterimage
SK Aupark Bratislava 12 1 Masterimage
SK Polus Bratislava 8 1 Masterimage
HU MOMPark Budapest 9 1 Masterimage
HU West End Budapest 14 2 Real D
HU Campona Budapest 11 1 Masterimage
HU Mammut Budapest 13 1 Masterimage
HU Dunaplaza Budapest 7 - -
HU Lurdy haz Budapest 10 1 Masterimage
HU Polus Budapest 6 - -
HU Eurocenter Budapest 7 - -
HU Kossuth4 Budapest 4 - -
HU Nyiregyhaza Nyiregyhaza 6 - -
HU Kaposvar Kaposvar 4 - -
HU Tatabanya Tatabanya 4 - -

TOTAL 170 13

Source: Palace Cinemas

V.J Maury, CEO, +36-20-340-8676, vjmaury at palacecinemas.net