Mr. Ellis Jacob reports

CINEPLEX COMPLETES SALE OF PLAYER ONE AMUSEMENT GROUP

Cineplex Inc. has completed the previously announced sale of its amusement solutions business, Player One Amusement Group (P1AG), to private equity firm OpenGate Capital.

OpenGate acquired all issued and outstanding common shares of P1AG for a total purchase price of $155-million in cash, subject to customary postclosing adjustments. As part of the transaction, Cineplex and P1AG entered into a long-term agreement, where P1AG will continue to supply and service amusement games in Cineplex's theatres and location-based entertainment venues. As previously disclosed, Cineplex intends to use the net proceeds from the transaction to pay against the company's credit facility.

"The sale of P1AG represents a meaningful gain for Cineplex and an important step towards accelerating the company's focus on deleveraging and evaluating options to optimize its capital structure," said Ellis Jacob, president and chief executive officer of Cineplex. "We would like to thank the P1AG management team and all employees across North America for their commitment, dedication and help in expanding and creating more value for Cineplex and our investors."

Cineplex will present P1AG as a discontinued operation on a retrospective basis until the closing date during the quarter ending March 31, 2024. Included as exhibits to this release are the changes to select previously reported financial information, reflecting P1AG as a discontinued operation.

Supplemental annual financial results (unaudited)

An attached table shows the changes to previously disclosed revenues, expenses and net income (loss) for the year ended Dec. 31, 2022, and 2021.

About Cineplex Inc.

Cineplex is a top-tier Canadian brand that operates in the film entertainment and content, amusement and leisure, and media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of over 170 movie theatres and location-based entertainment venues. In addition to being Canada's largest and most innovative film exhibitor, the company operates Canada's favourite destination for eats and entertainment (The Rec Room), complexes specially designed for teens and families (Playdium), and a newly launched entertainment concept that brings movies, amusement gaming, dining and live performances together under one roof (Cineplex Junxion). It also operates successful businesses in digital commerce (CineplexStore.com), alternative programming (Cineplex Events), motion picture distribution (Cineplex Pictures), cinema media (Cineplex Media) and digital place-based media (Cineplex Digital Media), and amusement solutions. Providing even more value for its guests, Cineplex is a partner in Scene+, Canada's largest entertainment and lifestyle loyalty program.

Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across Canada and the United States.

We seek Safe Harbor.