Viacom Agrees to Sell Its Famous Players Canadian Theatre Chain to Cineplex Galaxy LP

Viacom Agrees to Sell Its Famous Players Canadian Theatre Chain to Cineplex Galaxy LP

NEW YORK, June 13 /PRNewswire-FirstCall/ -- Viacom Inc. (NYSE:VIA)(NYSE:and VIA.B) announced today that it reached an agreement to sell Famous Players, its Canadian-based theatre chain, to Cineplex Galaxy LP for a total of $500 million CAD (approximately $400 million USD). The transaction, already cleared by the Canadian Competition Bureau, subject to the terms of a consent agreement entered into with the Competition Bureau, is expected to be completed in the third quarter, subject to customary closing conditions. Lehman Brothers and Citigroup advised Viacom in this transaction.

Celebrating its 85th anniversary, Famous Players is Canada's top grossing theatrical exhibitor. Internationally recognized for its superior technology and innovation in theatre design and guest services, the company operates a total of 81 locations with 787 screens across the country, including theatres in its joint venture with IMAX and its partnership with Alliance Atlantis.

Sumner Redstone, Chairman and Chief Executive Officer of Viacom, said, "Today's announcement marks the coming together of two strong and innovative theatre chains to create one of North America's leading theatrical exhibition businesses. As Canada's top grossing chain with a superb management team in place, Famous Players has always been an important part of the Viacom family of businesses. Although we part now as we refine our strategic focus on our core content creation engines, we have no doubt that Famous Players will make a significant and positive contribution in this new combined operation."

Viacom is a leading global media company, with preeminent positions in broadcast and cable television, radio, outdoor advertising, and online. With programming that appeals to audiences in every demographic category across virtually all media, the company is a leader in the creation, promotion, and distribution of entertainment, news, sports, music, and comedy. Viacom's well-known brands include CBS, MTV, Nickelodeon, Nick at Nite, VH1, BET, Paramount Pictures, Infinity Broadcasting, Viacom Outdoor, UPN, TV Land, Comedy Central, CMT: Country Music Television, King World, Spike TV, Showtime, Paramount Parks, and Simon & Schuster. More information about Viacom and its businesses is available at http://www.viacom.com/.

Source: Viacom Inc.

CONTACT: Media: Carl D. Folta, +1-212-258-6352, carl.folta@viacom.com, or Julia Phelps, +1-212-846-5288, julia.phelps@viacom.com, or Investors: Martin Shea, +1-212-258-6515, marty.shea@viacom.com, or James Bombassei, +1-212-258-6377, james.bombassei@viacom.com, all of Viacom Inc.

Web site: http://www.viacom.com/

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