Market Overview

NCM Strengthens Its Leadership in Cinema Advertising to Better Compete in the Broader Premium Video Marketplace

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National CineMedia (NCM), America's Movie Network, has strengthened its
network with the addition of five new affiliate partners, adding 71 new
theaters, 533 screens and approximately 20 million attendees to its
national theater network, enabling it to better compete in the broader
premium video marketplace.

NCM is proud to welcome the following theater circuits that have chosen
to be a part of the #1 Millennial weekend network in America:

  • Bow
    Tie Cinemas
    , based in New York, NY with 43 theaters, 271 screens
    and approximately 7 million attendees, will join the NCM network in
    March as previously announced,
    giving NCM significantly enhanced coverage in the Tri-state area with
    37 Bow Tie theaters and 212 screens in the New York DMA alone. Bow Tie
    Cinemas is the oldest theater circuit in North America and is
    currently one of America's fifteen largest exhibitors, with theaters
    in CO, CT, MD, NJ, NY & VA.

    "We are looking forward to
    a successful and productive partnership with NCM," stated Ben Moss,
    CEO of Bow Tie Cinemas. "With our diverse collection of theaters our
    consumer reach and advertising capabilities will be further enhanced
    by joining NCM's robust network."
  • Cinergy
    Entertainment Group, Inc.
    , based in Dallas, TX with 3 theaters, 29
    screens and approximately 2 million attendees, will join the NCM
    network in October. All Cinergy cinema entertainment centers feature
    dine-in cinemas serving alcoholic beverages and a tempting array of
    restaurant quality food and beverages. In addition to upscale cinema
    amenities, all Cinergy locations feature a unique selection of
    interactive games and a variety of other amenities, including bowling,
    billiards, full bars, laser tag, and a Sky Walker ropes course.
    Cinergy is privately held by the Benson family, the founders of Movie
    Tavern, the largest nationwide chain of dine-in cinemas.

    "We
    are so excited for a successful and dynamic partnership with NCM, we
    feel that our unique movie-going experience and advertising
    capabilities will be further enriched by joining NCM's robust
    network," stated Traci Hoey, Director of Marketing and Sales with
    Cinergy Entertainment.
  • Main
    Street Theatres
    , based in Omaha, NE with 8 theaters, 48 screens
    and 1 million attendees in IA and NE, will join the NCM network in
    June. Owned and operated by the Barstow family with its flagship
    Aksarben Cinema in Omaha, Main Street Theatres also provides film
    buying and consulting for an additional 30 theaters located in Iowa,
    Nebraska, Kansas, Minnesota and South Dakota.

    "National
    CineMedia is the premium pre-show experience our customers demand and
    joining forces was a natural fit for our family company," said William
    J. Barstow, owner of Main Street Theatres.
  • Megaplex
    Theatres
    , based in Salt Lake City, UT with 17 locations, 185
    screens and nearly 10 million attendees last year, will join the NCM
    Network for National Sales in March and increase NCM's screen market
    share in Salt Lake City to 78%. Founded by the late Larry H. Miller,
    Megaplex Theatres is Utah's premier movie entertainment company and
    its theaters are frequently among the top grossing in the nation. With
    locations throughout Utah and Southern Nevada, Megaplex Theatres offer
    a wide range of services, from reserved seating to the latest
    technologies in the industry.

    "Megaplex Theatres is excited
    to join with NCM to better serve our guests with quality national
    media messaging," said Blake Andersen, president of Megaplex Theatres.
    "We recognize there are unique national opportunities through NCM that
    reach beyond our regular business model that will ultimately benefit
    our loyal Megaplex audience."
  • MJR
    Digital Cinemas
    , based in Bloomfield Hills, MI with 11 theaters,
    164 screens and 6 million attendees in MI, will join the NCM network
    for Regional sales in August after having already been a part of the
    NCM network for National sales since 2015. With over thirty years in
    the industry, MJR has grown to become one of the most trusted names in
    Metro Detroit moviegoing. Clean, comfortable, and modern facilities
    are a staple, leading the way to provide the ultimate experience for
    the ultimate escape. MJR refuses to hold back, showcasing stadium
    seating as well as the most current innovative reserve seating with
    all-electric recliners, digital projection and sound, and the latest
    digital 3D technologies in all of its theaters.

    "MJR is
    looking forward to a mutually beneficial and rewarding relationship
    with NCM. We especially are happy to now be a part of and have full
    access to the FirstLook pre-show," said Mike Mihalich, CEO &
    Founder of MJR Digital Cinemas.

As announced last week, NCM and American Multi-Cinema, Inc. (AMC) reached
an agreement
that enables AMC to comply with the Department of
Justice's (DOJ) Final Order on its acquisition of Carmike Cinemas, Inc.
while reaffirming the companies' commitment to their continued
partnership. The DOJ Final Order required AMC to transfer cinema
advertising rights to 17 theaters from NCM to another cinema advertising
provider. It also required the sale of additional theaters (many of
which were previously Carmike theaters), which may be sold to any
exhibitor including those that are currently part of the NCM advertising
network (thus the impact on NCM of these sales is yet to be determined,
but at most represents approximately 1% of NCM's total network).
However, as per AMC's long-term Exhibitor Services Agreement (ESA)
running through 2037, NCM will continue to automatically welcome any new
or acquired theaters of the now larger AMC chain into its network in the
future.

"While the recent outcome of the DOJ Final Order regarding AMC's
acquisition of Carmike resulted in the transfer of 17 theaters with 9.5
million attendees from NCM to another cinema advertising provider, we
have already more than made up for it with new affiliate partnership
agreements with top theater circuits including Bow Tie Cinemas, Cinergy
Entertainment and Main Street Theatres resulting in the movement of 54
theaters and 10 million attendees to NCM, as well as an additional 17
theaters and 10 million new attendees joining us from Megaplex Theatres,
a major exhibitor which had previously sold their own National
advertising in-house. That's a total of 20 million new attendees joining
the NCM network to date in 2017, which is great news for brands that
want to reach these highly engaged and enthusiastic moviegoers," said
Cliff Marks, President of NCM. "This expanded national reach and depth
of coverage in key markets like New York, Dallas, Detroit, Omaha and
Salt Lake City is just another example of why NCM truly is America's
Movie Network."

NCM's accelerated network growth was led by its new Affiliate
Partnerships team, and Stacie Tursi, SVP, Affiliate Partnerships, noted
that, "My team was formed to not only seek out and develop new affiliate
partner relationships, but to also strengthen our existing relationships
and enhance business collaboration. Our relationships with our
exhibitors are a key focus of our business and are fundamental to
continuing to grow the number of impressions we have available to sell
to advertisers to better compete in the premium video marketplace. It's
great to see exhibitor partners like these who had previously worked
with another network or who may have been handling advertising sales
in-house recognize the value of becoming part of the #1 Millennial
network in the U.S., and I'm proud to welcome them aboard."

About National CineMedia (NCM)

National CineMedia (NCM) is America's Movie Network. As the #1
Millennial weekend network in the U.S., NCM is the connector between
brands and movie audiences. More than 700 million moviegoers annually
attend theaters that are currently under contract to present NCM's
FirstLook pre-show in over 40 leading national and regional theater
circuits including AMC Entertainment Inc. (NYSE:AMC), Cinemark Holdings,
Inc. (NYSE:CNK) and Regal Entertainment Group (NYSE:RGC). NCM's cinema
advertising network offers broad reach and unparalleled audience
engagement with over 20,500 screens in over 1,600 theaters in 189
Designated Market Areas® (all of the top 50). NCM Digital goes beyond
the big screen, extending in-theater campaigns into online and mobile
marketing programs to reach entertainment audiences. National CineMedia,
Inc. (NASDAQ:NCMI) owns a 43.7% interest in, and is the managing member
of, National CineMedia, LLC. For more information, visit www.ncm.com.

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