Cinemark USA, Inc.
	Reconciliation of Adjusted EBITDA (unaudited)
	(in thousands)
		Three months ended June 30,			Six months ended June 30,
		2004	2003		2004	2003
Net income		$               1,360	$            8,382		$       11,294	$         13,835
	Income taxes (benefit)	(522)	6,069		7,426	10,018
	Interest expense (1)	11,183	14,806		23,649	28,685
	Other expense	6,965	6,606		7,719	8,151
	(Gain) loss from discontinued operations, net of taxes	(1,218)	194		546	509
Operating income		17,768	36,057		50,634	61,198
	Add:  Depreciation, amortization and asset impairment loss	16,884	18,599		34,773	34,594
	Add:  Gain on sale of assets and other	(40)	(375)		(553)	(991)
	Add:  Amortized compensation - stock options (2)	-	274		145	549
	Add:  Deferred lease expenses (3)	471	821		1,010	1,624
	Add:  Stock option compensation and change of control expenses related to the Recapitalization	31,995	-		31,995	-
Adjusted EBITDA (4)		$             67,078	$          55,376		$     118,004	$         96,974
(1)	Includes amortization of debt issue costs and excludes capitalized interest.
(2)	Non-cash expense included in general and administrative expenses.
(3)	Non-cash expense included in facility lease expense.
(4)	Adjusted EBITDA as calculated in the chart above represents net income before income taxes (benefit), interest expense, other  expense, (gain) loss from discontinued operations,  depreciation, amortization and asset impairment loss, gain on sale of assets and other, accrued and unpaid compensation expense relating to any stock option plans, changes in deferred lease expense, and stock option compensation and change of control expenses related to the Recapitalization.  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.