NATO of / May 2006 May 2006 NATO of California/Nevada

Information for the California and Nevada Motion Picture Theatre Industry Annual Membership Meeting CALENDAR Set For June 14 of EVENTS & The National Associa- CA/NV members. As many as tion of Theatre Owners of 18 $7500 scholarships will be HOLIDAYS California/Nevada has set its awarded to field level employ- annual membership meeting ees and spouses and dependent for Wednesday, June 14, at children of management. Mother’s Day ArcLight Cinemas in Holly- A special presentation by May 14 wood. A continental breakfast Kathy Benjamin, Senior Vice will be served beginning at President and Strategic Analyst 9:00 a.m., with the business for Nielsen NRG will present Memorial Day portion of the meeting to excerpts from Nielsen’s latest Observed commence at 10:00 a.m. 2006 research on movie con- ArcLight Cinemas May 29 Among the items included sumption trends both in the on the morning’s agenda are the introduction of theater and at home. The presentation will be based new officers and directors of the Association, the on information compiled from more than 5,000 Board of Directors announcement of winners of the Association’s moviegoers surveyed last Summer and this Winter. meeting scholarship programs at the University of South- Topics will include insight into who are today’s en- June 13 ern California, and the University of California, tertainment consumers and what are the dynamics , along with a review of accomplish- between the various entertainment venues. ments over the past year. Attendance is open to all employees of member companies and is by reservation only. Please RSVP Annual Membership A special part of the program will be dedi- cated to the announcement of the winners of by Monday, June 4th, at (310) 460-2900, or email, Meeting at ArcLight our original Scholarship Program for NATO of Offi[email protected]. ▼ Cinemas June 14 NATO of California/Nevada Donation Goes A Flag Day June 14 Long Way In Helping Tsunami Victims NATO of California/Nevada’s $100,000 tsunami. These included the purchase of a donation to the nonprofit international relief fully equipped ambulance for the District Fathers Day organization AmeriCares has gone a long Health Office in Aceh Besar, the purchase of June 18 way in helping to ease the plight of tsunami materials for a malaria prevention program victims in South Asia. in northern Nias, an island in North Sumatra, AmeriCares’ Lisa Karl, Associate Di- including bed nets, insecticide, spray cans Independence Day rector, Major Gifts, has written to say that and protective gear, and the replacement of July 4 thanks to the Association’s generous dona- medical equipment damaged in the tsunami tion they were able to carry out a number of at Jaffna Hospital, one of Sri Lanka’s major major relief projects in the aftermath of the hospitals. ▼ NATO of California/Nevada May 2006

Previews Record Turn-Out For Spring/Summer is published by the National Association of Theatre Owners of Product Seminars California/Nevada Rain did not impede theatre personnel from attending NATO of 11661 San Vicente Blvd., Suite 830 California/Nevada’s Spring/Summer Film Product Seminars with more Los Angeles, CA 90049-5116 than 325 attending in Southern California and 250 in Northern California. Phone: 310/460-2900 Each of the major film studios had strong representation at both of the Fax: 310/460-2901 meetings where they collectively showed footage from eighty different films. E-mail: Offi[email protected] www.NATOCalNev.org From the reaction of the audience it promises to be a very busy summer. On behalf of the Association we extend our appreciation to host OFFICERS circuits; the Regal Entertainment Group for the Southern California Milton Moritz seminar and up north, and to our breakfast sponsor, President & CEO Patrick Artiaga of ACS Enterprises, Inc. A heartfelt thank you goes to Raymond W. Syufy Chairman Dave Pricz, Brent Lynch and Eddie Torres of the REG Edwards Long William F. Hertz, Sr. Beach 26 Theatre and Ruth Ward and Bryan Edwards of the Century 16 Vice President Downtown Pleasant Hill theatre, along with their staffs, for welcoming us David Corwin and doing such a great job hosting the events. Treasurer Bruce Sanborn As in past years the product seminar also included lucky winners. Secretary Wendell Arciaga of Pacific’s The Grove Theatre and Josh Bastian of ❦ Sierra’s Sutton Cinemas were the winners of the raffle, each receiving the beautifully illustrated book The OARD OF IRECTORS B D Ninetieth Anniversary Edition of Glorious Bruce Coleman Brenden Theatres Technicolor, The Movies’ Magic Rainbow. Milt Moritz presented appreciation David Corwin The winners of NATO’s 2nd Annual plaques to hosts, Dave Pricz in Metropolitan Theatres Long Beach and Ruth Ward in Showmanship Awards were also announced. Pleasant Hill. Nora Dashwood Pacific Theatres The three winners were all from Southern Alan Grossberg California and received their award certificates and checks from UltraStar Cinemas Association President Milt Moritz. The first place award of $1,500.00 William F. Hertz, Sr. Milt Moritz presented the raffle Mann Theatres prize, The Ninetieth Anniversary went to Ted Goldbeck at Krikorian’s Monrovia 12 Theatre for his George Krikorian Edition of Glorious Technicolor, promotion of Dust to Glory. Sherry Gartley of The Movie Experience at Krikorian Premiere Cinemas The Movies’ Magic Rainbow, to lucky winner Josh Bastian of Sierra Cal Oaks and Janet Swindell of The Movie Experience at Tower Plaza split Greg Laemmle Cinemas’ Sutton Cinemas. Laemmle Theatres the second place prize of $1,000 for their joint promotion based on Charlie rd Ted Mundorff and the Chocolate Factory. The 3 Place award of $500 went to Penny Benson also at The Movie Experience at Cal Oaks for her promotion of Neal Pinsker Lords of Dogtown. Penny had a double prize with the recent birth of a Regal Entertainment Group baby daughter and was not able to attend but Lisa Kanno from The Movie Frank Rimkus Galaxy Theatres Experience home office happily accepted on Penny’s behalf. Bruce Sanborn As a special added attraction the excellent documentary CINERAMA The Movie Experience ADVENTURE was shown. This feature length documentary chronicles Raymond W. Syufy Century Theatres the amazing history of the long lost three-camera, three –projector Milt Moritz congratulates lucky John Tegtmeier raffle winner Wendell Arciaga, cinematic process which thrilled millions around the world in the 1950s Paradise Cinemas Pacific Theatres’ manager at and early 60s and led the film industry into the widescreen – stereo Dick Walsh The Grove. AMC Theatres sound era. For many it was an emotional thrill to again witness the ❦ way movies were shown in those amazing theatre palaces of the past. Director and Producer David Strohmaier and Producer Randy Gitsch attended the screenings and provided a Q & A session. Charlene Sievers Director, Member Services The next NATO of California/Nevada Product Seminar will be held in the Fall featuring product coming for the Holiday season. ▼

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Top Three Showmanship Award “Dust To Glory” Winners Divide $3000 Promotion Campaign Sincere appreciation goes to Earns Ted Goldbeck the Showmanship Award Judging Committee comprising Lisa Kanno, Top Showmanship The Movie Experience; Dan Cahill, CinemaStar Luxury Theatres; Honors and $1,500 Melody Graves, Brenden Theatres; Ted Goldbeck, General Manager of Shaun Mullen, Regal Entertainment Krikorian’s Monrovia 12 Theatre, pulled out Group; Todd Cummings, Krikorian all the stops in his promotion campaign for the Premiere Theatres and John Sittig, one night only showing of the documentary Pacific Theatres. film “Dust to Glory,” earning him top honors 1st Place in NATO of California/Nevada’s 2nd Annual Ted Goldbeck of Krikorian Premiere Theatres’ Monrovia Showmanship Awards and a $1,500 prize for Cinema 12 his efforts. “Our “Dust to Glory” block party raised money for the Building on the film’s theme of the Baja Malcom Smith’s Baja Orphanage and the Monrovia Public 100 off-road race, Ted tied in with a number Library. We worked with radio, TV, newspaper, websites, of local and national promotion partners in local and national businesses to help promote the film and casting a wide net to attract the audience. event. We shut down over three city blocks to display off-road Staged in connection with Monrovia’s Street vehicles and more!” Fair, the street in front of the theatre along with a nearby park were blocked off to display 2nd Place over 200 off-road vehicles, motorcycles, and Janet Swindell of The Movie Experience at trucks, while on-air personalities from a local Tower Plaza and Sherry Gartley of The Movie radio station broadcasted live from the site, Experience at Cal Oaks for their Charlie and the interviewing the film’s director, star and fans. Chocolate Factory promotion Local merchants displayed fliers throughout “Our promotion was a joint promotion in which the town, and news crews from two Los we advertised through events in the Murrieta & Angeles TV stations came out to cover the Temecula area. We contacted local businesses & event. With a portion of ticket sales going established several media relations to help promote to benefit an orphanage and the local library, opening weekend events including many contests and the efforts were recognized with a Certificate activities for children, giveaways, a golden ticket annual pass give away, and a of Recognition signed by the Mayor and charity event in support of Variety.” members of the City Council. 3rd Place Ted’s far-reaching promotion was well documented in a colorful, eye- catching and Penny Benson of The Movie Experience at Cal Oaks for very expansive scrapbook identifying his many her promotion of Lords of Dogtown. Lisa Kanno accepted promotion partners, and with plenty of photos the award for Ms. Benson who just gave birth to a new recording the theatre front activities, the media daughter. in attendance, the large crowds at the theatre, “Our promotion consisted of teaming up with all capturing much of the day’s excitement. skateboarding vendors to coordinate local skatepark Ted reports that over $5,000 was raised contests in which we advertised our location and opening for the orphanage and library, with each of the weekend activities, in-theater 70’s era lobby displays, evening’s three performances being sold out. prize giveaways in all opening weekend shows and a very successful Well Done! ▼ fundraiser benefiting Young Variety of Southern California.” ▼

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Northern California NATO of California/ Nevada’s

A sincere thank you to Pleasant Hill Manager Ruth Ward (R) and her efficient and Century 16 Downtown Spring/ enthusiastic theatre staff who took a moment to pose for a photo. Pleasant Hill Summer Film Product Thanks go to Lisa Johnson- Robert Macias of Century Tiffany delos Santos and Foster and Bryan Edwards Steve Indig of Landmark Theatres with Cynthia Seminars Joegene Bruel of of Century for their help Cinemas with Eric Carr of Orellana of Universal Century Theatres with the seminar Focus Features Pictures

Wendell Jacob and Patricia Fitzgerald Mike Timko of Theatre Booking Services Demetri Panos of Lions Gate Films with Carolyn and Mike Smith, owner/ of Colfax Theatre with Vinele Grana of Pictures Rex Hescock of Regal managers of Oak Creek Cinemas

Our hosts, Bryan Edwards and Ray Wright with Hans and Bill Smith, Warner Bros; Cinerama Adventure Director and Ruth Ward of Century 16 Esther Van Wesenbeeck of Michael Morgan, Morgan Theatres; Producer David Strohmaier and Downtown Pleasant Hill with Aivolution, LLC and Greg Jones of Charlene Sievers, NATO of CA/NV and Producer Randy Gitsch following the Eric Martin from corporate. Pacific Standard Mike Timko, Theatre Booking Services after-screening Q&A session.

Wendy McBane, Fernando Castillo Dave Corkill of Cinema West with Jason Strobel, Pacific Standard; Maria Silva, Somnuk Vannarath, and Holley Castillo of Eric Tabak of and Katy Caruso, Century; Joseph Depew, Diana Orozco and Lauren Gutierrez of Central Coast Cinemas Brandon Knott of Fox Regal and Evelyn Abisia, Century the Regal Entertainment Group

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Southern California

Raymond Cornelio from standing with Mann Theatres managers Grace Baldoz, Many thanks go to our gracious hosts – the REG Edwards Long Beach 26 Theatre Michael Northing and seated are Sharon Nicole Kollar and Jeff Zarrillo of AMC staff and managers Miller, Rica Mabuyo and Joseph Lepore with Vinele Grana of Sony Pictures

Tammy Peterson of Regal poses with Kim Zolna, Roxanne Catalano and Our team of photographers Katy Bellamy Reynee Scofield of Krikorian and Dave her mom, Stacy Peterson, and Esthela Kamron Meyer of CinemaStar Luxury and Kaylea Jacobson of REG Edwards Pricz of Regal with Eric Tabak & Stacy Hernandez of Krikorian Theatres Theatres Long Beach 26 Theatre and Gene Cofsky Chin of Paramount Pictures/DreamWorks

Donny Clemena of Pacific Theatres with Dan Cahill of CinemaStar Luxury Jonathan Wu of Focus Features with Scott Shellenbergar, Favio Adame and Cynthia Orellana of Universal Theatres with Brandon Knott of Fox Todd Naylor of Regal Miguel Salgado of AMC Theatres

Rusty Jones, Jill Rosenow and Sonya Greg Misa of Buena Vista with Garric Aaron Campos, Biniam Ghilay and Christine Castaneda and Nicki Solomito Grossberg of UltraStar Cinemas Bates of Landmark Theatres Alex Martinez of Pacific Theatres of Regal Entertainment Group

Sean Woodyard, Janet Swindell, Renee Kyu Lee and Christian Arenas of Sony Evans, Sherry Gartley and Jones Derek Tang and Daime Lai from the Eric Ward and Michael Tisdale from Pictures with Charlene Sievers of Jamieson of The Movie Experience Regal Entertainment Group Krikorian Premiere Theatres NATO of CA/NV

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Handling Final Pay, Many Conditions Equipment Return for Restrict Release of Terminated Exempt Employee Employee Information Question: We are calling an exempt employee in today to be termi- Question: Am I authorized to release employee infor- nated. What do we need to pay the employee? How can we be assured the mation to any additional parties? If not, is there any party to employee will return the company’s cell phone and laptop computer? whom I am required to disclose employee information? Answer: If an exempt employee is called in to work, you must pay Answer: Many issues must be considered relating to that employee for that day. whom employee information may be released and under what circumstances. Final Pay An exempt employee must be paid for the entire day, unlike a non- Employee Information exempt employee, who is paid only for all hours worked. You are not First to be clarified is what constitutes employee infor- required to pay the exempt employee’s full salary for the week in which mation. Generally referred to as “personnel information,” he or she was terminated. it is data maintained by the employer in relation to an individual’s employment in his/her personnel file. The final paycheck must include any salary earned through the last day of employment and any accrued, unpaid vacation pay. Personnel information includes, but is not limited to: • employment applications; Return of Equipment • reference letters; At the time company equipment is issued to the employee for busi- • employment agreements/contracts; and ness use, the employee should sign an acknowledgment agreeing to the • evaluations. return of the property and acceptance of responsibility if the equipment Third Party Rights is damaged or not returned California law has stated unequivocally that one’s right At the time of termination, the employer should go over the to privacy is a personal and fundamental right under the property agreement with the employee and ask that the equipment be state Constitution returned. Personal information in a personnel file, therefore, The phone service company should be contacted immediately must be maintained and disseminated only under specified to stop service to the phone, and any security codes on the computer circumstances and under strict limitations, and employers should be changed immediately so access to company programs and have a duty to protect the confidentiality of personnel data is no longer possible. records and limit disclosure to only individuals with a legitimate right of access. Court Option Employment laws require that under certain circum- If the employee fails to return the equipment after being requested stances, however, personnel information must be released, even to do so, the employer may go to court to obtain an order for the return without employee authorization, such as upon a request from of the equipment. ▼ the district attorney relating to child support obligations. Source: California Chamber of Commerce, Alert Labor Law Corner Continued on page 7

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Continued from page 6 Lawfully Issued Subpoenas Exhibitor Relations A subpoena requesting employment records must be in strict compliance with legal requirements. If an employer receives a Contact Information subpoena that does not appear to be consistent with the following requirements, the employer should contact legal counsel prior to Buena Vista responding to the subpoena Christina Nedelec ...... [email protected] One sheets & trailers can be ordered from Technicolor A valid subpoena contains the following: • The party issuing the subpoena must serve a copy of Focus Features the subpoena on the employee whose records are being Eric Carr ...... (818) 777-8840 ...... [email protected] Jonathan Wu ...... (818) 777-9460 [email protected] sought and a copy of any affidavit supporting the issu- ance of the subpoena. Fox/Fox Searchlight • The party issuing the subpoena must serve the em- Fox Fulfillment ployee whose records are being sought at his/her last Materials Hotline 800-FOX-0010 Materials Fax line 661-702-5154 known address or, if known, to the employee’s attorney www.FoxExhibitor.com of record. FOX REWARDS • If the employee is requesting the documents, the sub- Fox Rewards Enrollment & Hotline poena must be accompanied by an affidavit signed by 866-FOX-RULES the employee, or his/her attorney of record, authorizing www.FoxRewards.com release of the employment records. Lions Gate Entertainment • The subpoena must be issued at least 15 days prior to the Mike Polydoros ...... (310) 255-3719 ...... [email protected] date the subpoena specifies for producing the employ- Demetri Panos ...... (310) 255-4038 ...... [email protected] ment records. Fax: (310) 255-3730 • The employer must receive the subpoena and a copy of New Line the affidavit that supports the subpoena. Alternatively, [email protected] [email protected] the employer may accept a release of those records signed [email protected] by the employee. Paramount Pictures/DreamWorks Accompanying Subpoena Notice Eric Tabak ...... (323) 956-4836 ...... [email protected] Every copy of the subpoena and accompanying affidavit served on an employee or his/her attorney must be accompanied by a notice, Sony Pictures in a typeface designed to call attention to the notice, indicating: Southern California and Nevada Vinele Grana - (310) 244-3037 ...... [email protected] • employment records about the employee are being sought Northern California from the employer, as named on the subpoena; Christian Arenas - (310) 244-3045 ...... [email protected] • the employment records may be protected by a right of All materials can be ordered at www.sonypicturesreleasing.com privacy; or by phone: 877/Deluxe6 • if the employee objects to the witness furnishing the Universal records to the party seeking the records, the employee www.exhibitorrelations.com shall file an objection with the court prior to the date Cynthia Orellana ...... (818) 777-0096 ...... [email protected] specified for production on the subpoena; and Rebecca Jansson ...... (818) 777-0011 ...... [email protected] • if the subpoenaing party does not agree in writing to Warner Bros/Warner Independent cancel or limit the subpoena, an attorney should be Bill Smith ...... [email protected] consulted about the employee’s interest in protecting Jesse Chow ...... [email protected] his/her rights of privacy. The Weinstein Company If you are unsure whether release of personnel information is Roe Campo ...... [email protected] appropriate, be sure to consult legal counsel. ▼ Onesheets and trailers can be ordered from Technicolor Source: California Chamber of Commerce, Alert Labor Law Corner

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NATO of California/Nevada USC School Of Members Honored at ShoWest Cinema-Television Peter Brown, Chairman, CEO and President of AMC Entertainment, Inc., Scholarship Winners was honored with the 2006 ShoWester of the Year Award. This award is presented Announced to an individual who has demonstrated a NATO of California/Nevada is pleased to dedication to the betterment of the exhibition announce the four University of Southern California industry and its causes. In addition to Mr. School of Cinema-Television students who will share Brown’s industry endeavors he is committed the Association’s $25,000 scholarship award. They are: to the support of many charitable programs that benefit the industry including the Will John Helton, a first year graduate student in Rogers Motion Pictures Pioneers Foundation who received a check for the Division of Animation and Digital Arts. John $529,000 from Loew’s/AMC Theatres for money raised in the summer received his Bachelors Degree from Marycrest campaign. International University in Davenport, Iowa, and is now working toward his goal to produce animation The 2006 ShoWest/ and visual effects for entertainment. NATO Marketing Achievement award for Chris Velazquez, a first year graduate student in Best Overall Promotion the Division of Writing for Screen and Television. & Showmanship was Chris attended Boston University’s School of won by the Brenden Communication’s film program, and is working on his Modesto 18 Theatre team led by Joseph Girouard for its “Star Wars: goal of becoming a writer for film and television. Episode III-Revenge of the Sith” promotion. The members of the team Hieu Ho, a current MFA candidate in the pictured above are Joseph Girouard, Executive Director Marketing & USC Peter Stark Producing Program. With a BA Promotions; Will Ryan, Modesto Assistant General Manager; Mark from UCLA, Hieu previously participated in the Perez, team member; Patty Duarte, team member; Alicia Duarte, Warner Bros. Global Trainee Program, and one of his Modesto Promotions Manager; Saul Trujillo, Modesto General Manager independent films was named winner of Best Short and Johnny Brenden, CEO/President Brenden Theatre Corporation. Film at the Hawaii International Film Festival. Jennifer Fardig, General Manager Rain Breaw, a third year graduate student in of the Century Ventura 16, received a production. She studied film and anthropology at commendation award from the Will Rogers Vassar College, and has produced several short thesis Motion Picture Pioneer Foundation as one films, one of which won the Director’s Choice Award of the top fundraisers in their record-breaking for Best Student Short at the Sedona Film Festival. 2005 Summer Campaign. Ms. Fardig’s theatre In addition to the USC Scholarship program, raised $32,000 of the record-breaking $4 now in its second year, the Association will present Million for the organization. Century Theatres for the third consecutive year a $25,000 scholarship accounted for $580,000 of that total. Jennifer award to four students in the UCLA School of was also the lucky winner of a Fuji digital camera at the Awards Breakfast. Theatre, Film and Television. Also up to $135,000 Regal Entertainment Group’s Mohamed will be presented in scholarship awards to member Shahkshir, General Manager of the REG companies’ field level employees and/or the spouses South Gate 20 Theatre, was honored and dependent children of managers and corporate for his theatre’s contribution of $30,000 employees based in California and Nevada. Since raised during the 2005 Will Rogers the inception of the field level employee scholarship Summer Campaign. Nationwide the Regal program in 1996 NATO of CA/NV has awarded Entertainment Group collected $2.250 Million scholarships totaling almost half a million dollars to dollars for Will Rogers this past summer. ▼ its members’ employees. ▼

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Opening A LOOK AT Date Film (Studio) FSS Gross Domestic Cume SUMMER 2005 MONSTER-IN-LAW (NL) $23,105,133 $82,931,301 2004 VAN HELSING (Univ) $51,748,040 $120,073,130 PERFORMANCES 2003 X2:X-MEN UNITED (Fox) $85,558,731 $214,949,694 2002 SPIDER-MAN (Col) $114,844,116 $403,706,375 Summer will officially start this 2001 THE MUMMY RETURNS (Univ) $68,139,035 $202,007,640 year on May 5th 2000 GLADIATOR (DW) $34,819,017 $187,683,805 with the opening of 1999 THE MUMMY (Univ) $43,369,635 $155,270,725 Mission: Impossible III. 1998 DEEP IMPACT (Para) $41,152,375 $140,464,664 1997 THE FIFTH ELEMENT (Col) $17,031,345 $63,802,150 We look back to top openers 1996 TWISTER (War) $41,059,405 $241,708,928 for this period in years past. 1995 CRIMSON TIDE (BV) $18,612,190 $91,387,195 ~Source: Exhibitor Relations Co. Analyst: B.O. Reversal Coming Soon As reported in Wall Street continues to discuss the outlook for the film near-term determinants of boxoffice revenue,” he argued, business after a sluggish 2005, with Ladenburg, Thalmann pointing to recent data. “Industry critics have largely blamed analyst William Kidd in a recent research report taking a more the proliferation of home theater and movie substitutes, optimistic stance than some peers. like the Internet, for the boxoffice ills, without taking into “A solid 2006 boxoffice should breathe new life into consideration other contributing factors.” cinema” the headline for this report said. Besides big live-action tentpole releases, Kidd counts eight Kidd predicts “an important reversal in 2006,” namely known animated films for the current year, including “The “modest growth in boxoffice sales and attendance.” He Wild,” “Over the Hedge,” “Cars” and “The Ant Bully,” up from predicted the U.S. boxoffice would grow about 2% this year, just three major releases in 2005. “Given that children-friendly with attendance inching up 1% and increased admissions movies tend to do better than R-rated movies, and animation prices doing the rest. movies do even better, we are optimistic that 2006 will show both boxoffice growth and attendance growth,” Kidd said. Kidd cited “a strong film slate including a slew of animation films” as key growth drivers this year, listing such upcoming The current second quarter, Kidd estimates will see a films as “The Da Vinci Code,” “Superman Returns” and 3.5% year-over-year boxoffice improvement, and the third “Mission: Impossible 3” as important summer tentpole releases. quarter, for which he eyes a 2% gain, could be key periods While Standard & Poor’s Equity Research Services last to help reverse investor perceptions as they would end seven week cautioned investors about secular trends that could consecutive quarters of boxoffice declines, Kidd said. hold movie studios back this year – such as declining U.S. Given his expectations, the analyst started coverage of DVD sales and increased competition from newer forms of exhibition giant Regal Entertainment Group with a $23 price media – Kidd argued that film business trends always have target and a “buy” rating. “We think this story warrants been cyclical. “Film quality is among the most important attention,” he said. ▼

Year-To-Date Box-Office YEAR-TO-DATE 106 days starting Sunday, January 1, through Sunday, April 16, 2006 Average ticket price for 2006 is estimated Year Avg. Ticket Ticket Price Total Gross % Change vs. Attendance % Change Price Change Previous Year vs. Previous Year Films To Video: 2006 $6.61 3.12% $2,469,652,867 5.38% 373,623,732 2.19% Projected Release 2005 $6.41 3.22% $2,343,665,936 -4.90% 365,626,511 -7.87% 2004 $6.21 3.97% $2,464,491,148 - 396,858,478 - Schedule ~Source: Exhibitor Relations Co. available at www.natocalnev.org

9 NATO of California/Nevada May 2006 INSIDE PREVIEWS National Association of Annual Theatre Owners Membership of California/Nevada Meeting Set for June 14 11661 San Vicente Blvd., Suite 830, Los Angeles, CA 90049 • NATO of CA/NV Donation Goes A Long Way • Record Turn-Out For Spring/Summer Product Seminars • Top Three Showmanship Award Winners Divide $3000 • ADDRESS SERVICE REQUESTED NATO of CA/NV Members Honored at ShoWest • USC School of Cinema-Television Scholarship Health Tip Winners Announced • If you use a reverse-osmosis water Analyst: filter or a distiller, you should be B.O. Reversal aware that they remove fluoride, which Coming Soon is added to most water supplies to reduce • cavities in children. If you use such Labor Issues a water filter (or drink only and Updates bottled water), you should Handling Final Pay, make sure that you and your Equipment Return for kids use fluoride toothpaste Terminated Exempt and/or a fluoride rinse. Employee Many Conditions Restrict Release of Employee Information • Annual membership meeting set for June 14th. Statistics See page 1 for details. Registration Deadline is Monday, June 4th.