Cinemark USA, Inc.
Reconciliation of Adjusted EBITDA to Net Income
For the Three Months Ended March 31, 2005 and 2004
(in thousands, unaudited)
		Three months ended
		March 31,
		2005	2004
Net income		$           12,053	$              9,934
	Income taxes	6,641	7,887
	Interest expense (1)	11,267	12,466
	Other (income) expense	(742)	768
	Loss from discontinued operations, net of taxes	-	1,565
Operating income		29,219	32,620
	Add:  Depreciation, amortization and impairment of long-lived assets	18,480	17,865
	Add:  (Gain) loss on sale of assets and other	688	(513)
	Add:  Deferred lease expenses (2)	705	145
	Add:  Amortized compensation - stock options (3)	-	550
Adjusted EBITDA (4)		$           49,092	$            50,667
	(1)     Includes amortization of debt issue costs and excludes capitalized interest.
	(2)     Non-cash expense included in facility lease expense.
	(3)     Non-cash expense included in general and administrative expenses.
	(4)   Adjusted EBITDA as calculated in the chart above represents net income before income taxes, interest expense, other
	(income) expense, loss from discontinued operations,  depreciation, amortization and impairment of long-lived assets,
	(gain) loss on sale of assets and other, changes in deferred lease expense,  and accrued and unpaid compensation expense
	relating to any stock option plans. Adjusted EBITDA is a non-GAAP financial measure commonly used in our industry
	and should not be construed as an alternative to net income or operating income as an indicator of operating performance or
	as an alternative to cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP).
	Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The calculation of Adjusted
	EBITDA is consistent with the definition of EBITDA in our senior subordinated notes indentures. We have
	included Adjusted EBITDA because we believe it provides management and investors with additional information to measure our
	performance and liquidity, estimate our value and evaluate our ability to service debt. In addition, we use Adjusted EBITDA for
	incentive compensation purposes.