Cinemark USA, Inc.
Reconciliation of Adjusted EBITDA (unaudited)
(in thousands)
		Three months ended September 30,			Nine months ended September 30,
		2004	2003		2004	2003
Net income		$         20,489	$        14,629		$         31,783	$         28,464
	Income taxes	6,538	7,780		13,964	17,798
	Interest expense (1)	10,749	13,133		34,398	41,819
	Other (income) expense	843	(38)		8,563	8,112
	(Gain) loss from discontinued operations, net of taxes	(103)	2,644		443	3,153
Operating income		38,516	38,148		89,151	99,346
	Add:  Depreciation, amortization and asset impairment loss	16,054	16,460		50,827	51,054
	Add:  (Gain) loss on sale of assets and other	3,189	232		2,636	(759)
	Add:  Amortized compensation - stock options (2)	-	273		145	822
	Add:  Deferred lease expenses (3)	607	1,885		1,616	3,509
	Add:  Stock option compensation and change of control expenses related to the Recapitalization	-	-		31,995	-
	Adjusted EBITDA (4)	$         58,366	$        56,998		$       176,370	$       153,972
	(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, interest expense, other  expense,
	(gain) loss from discontinued operations,  depreciation, amortization and asset impairment loss, (gain) loss 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.