A new Cinema City multiplex to be run in Budapest, Hungary execution of the lease agreement
The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that on 5 July 2007 IT Magyar Cinema Kft, a wholly-owned subsidiary of the Company incorporated and existing under the laws of Hungary, executed the lease agreement (the “Agreement”) with Buda Projekt Kft. , a company incorporated and existing under the laws of Hungary.
In accordance with the Agreement IT Magyar Cinema Kft will be leasing areas in the Skala shopping mall in Budapest. The rent areas will be used by the Company to operate a multiplex cinema as specified below:
|No.||City||Leased area (ca. in sqm)||Number of screens||Number of seats||Expected opening date|
|1.||Budapest||3,500||13||App. 2000||Second quarter 2009|
The detailed terms and conditions of the lease will be determined in the lease agreement to be concluded in the foreseeable future and in accordance with all terms and conditions of the Agreement.
The Agreement contains standard provisions, typical for agreements of such kind and gives the Company the right to lease the cinema space for 25 years (the lease agreement will be concluded for ten years with three options of extending a lease term, each for another five years). The Company will be required to pay a monthly rent on a market standards consisting of a fixed rent calculated on the basis of the leased area and the management fee for the benefit of the management company of the shopping mall.
The Agreement will enable the Company to run the second cinema multiplex located in Budapest, after the 23 screen megaplex to be opened in Budapest in the fourth quarter 2007.
Legal grounds: Art. 56.1.1 of the Act of 29 July 2005 on the public offering, conditions governing the introduction of financial instruments to organised trading system and on public companies.
A signature of persons authorised to represent the Company: Mr. Israel Greidinger – a Managing Director, proxy