Date: Fri, 19 Dec 1997 03:07:08 GMT Server: Apache/1.1.3 Content-type: text/html Content-length: 12648 Last-modified: Thu, 03 Jul 1997 12:25:45 GMT Regal Cinemas Inc. - Financials
Regal Cinemas, Inc. REGAL CINEMAS HOME CORPORATE LOBBY PRESS FACTS FINANCIALS HISTORY PEOPLE THEATRES REGAL FINANCES

Letter to Shareholders

Campbell Head ShotFellow Shareholder:
Regal Cinemas had another great year in 1996. We continued to achieve substantial growth in revenues and profits for the year, consistently exceeding analyst expectations. We again produced among the highest profit margins of any major theatre company in North America, while further improving one of the industry's strongest balance sheets. Having been the tenth largest theatre company at the end of 1994 and the eighth largest at the end of 1995, we grew to be the sixth largest at the end of 1996. We also launched an aggressive plan to continue the Company's growth through the construction of new multi-screen theatres expected to expand our base of screens in operation by approximately 70% by the end of 1998.

This letter will describe these and other accomplishments for 1996, as well as discuss our plans for the future. The Company's success in 1996 is instructive, because, in the most important aspects, we intend to continue implementing the same strategies going forward that have accounted for Regal's position as one of the fastest growing, most profitable and most innovative major theatre companies. Regal's goals for 1997 and beyond are simple to explain. We believe we have developed an organization that can sustain a substantial growth rate for the foreseeable future, defined in this context as at least the next three to five years. As we pursue this goal, we also expect Regal to remain one of the most profitable companies in the industry and to maintain one of the strongest financial positions relative to its industry peers.

Sincerely,
Michael L. Campbell
Chairman, President and Chief Executive Officer


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