Conclusion of three lease agreements in Romania
The Board of Managing Directors of Cinema City International N.V. (the "Company") informs that on February 2007 Cinema City Romania S.R.L, a wholly-owned subsidiary of the Company incorporated and existing under the laws of Romania, executed three lease agreements with IULIUS MALL, a company incorporated and existing under the laws of Romania.
In accordance with the above-mentioned lease agreements Cinema City Romania S.R.L will lease areas in three shopping malls constructed by IULIUS MALL in three second largest cities in Romania with over 300 thousand habitants each, i.e., in Lasi, Timisoara and Cluj. The areas will be used by the Company to operate multiplex cinemas as specified below:
|No.||City||Leased area (ca. in sqm)||Number of screens||Number of seats||Expected opening date|
|1.||Lasi||1,528||5||830||Third quarter 2007|
|2.||Timisoara||2,000||7||970||Third quarter 2007|
|3.||Cluj||2,855||10||1,750||Fourth quarter 2007|
Lease agreements have been concluded for ten years with three options of extending a lease term, each time for another five years, and contain standard provisions, typical for agreements of such kind. 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 each shopping mall.
The above agreements evidence the fact of the implementation of the Company's strategy of growth and entering into the Central-European markets on which the Company was not present to take a leading position in cinema industry thereon. As a result of the above agreements and three other lease agreements concluded in 2006 (which relate to lease of cinema space in shopping malls in Bucharest), the Company intends to open and run by the end of 2008 six multiplexes in four largest cities in Romania.
Legal grounds: Art. 56.1.1 of the Act of 29 July 2005 on public offering and conditions governing the introduction of financial instruments to trading in the organised trading system and on public companies.
Signatures of persons authorised to represent the Company Mr. Israel Greidinger - proxy