Cinemark USA, Inc.
Reconciliation of Adjusted EBITDA to Net Income
For the Three Months Ended and Year Ended December 31, 2004 and 2003
(in thousands)
		Three months ended			Year ended
		December 31,			December 31,
		2004	2003		2004	2003
Net income		$       12,772	$     16,285		$         44,554	$        44,749
	Income taxes	13,204	7,357		27,030	25,041
	Interest expense (1)	11,004	12,345		45,403	54,163
	Other (income) expense	(65)	561		8,456	8,970
	(Income) loss from discontinued operations, net of taxes	(2,917)	(231)		(3,584)	2,740
Operating income		33,998	36,317		121,859	135,663
	Add:  Depreciation, amortization and impairment of long-lived assets	18,012	19,080		68,718	70,135
	Add:  (Gain) loss on sale of assets and other	2,215	(443)		4,851	(1,202)
	Add:  Deferred lease expenses (2)	798	967		2,397	4,475
	Add:  Stock option compensation and change of control expenses related to the Recapitalization	-	-		31,995	-
	Add:  Amortized compensation - stock options (3)	-	258		145	1,080
Add:  Adjusted EBITDA – discontinued operations (4)(5)		280	911		1,675	829
Adjusted EBITDA (4)		$       55,303	$     57,090		$       231,640	$      210,980
	(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, (income) 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, accrued and unpaid compensation expense relating to any
	stock option plans, stock option compensation and change of control expenses related to the Recapitalization and Adjusted
	EBITDA of discontinued operations.  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.
	(5)  Reflects Adjusted EBITDA for our United Kingdom theatres and our Interstate theatres, which were sold during 2004 and classified as discontinued operations.