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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

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FORM 10-Q

|(Mark One)ý                                                                       |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|--------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------
|For the quarterly period ended December 27, 2007
OR                              
|o                                                                                 |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|For the transition period from                  to
Commission file number 1-33344

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MARQUEE HOLDINGS INC.

(Exact name of registrant as specified in its charter)

|Delaware                                                       |  | 77-0642885                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)
|920 Main
Kansas City, Missouri                                 |  | 64105                               
|(Address of principal executive offices)                       |  | (Zip Code)                          

(816) 221-4000(Registrant's telephone number, including area code)

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Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes
ý    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

|Large accelerated filer o |  | Accelerated filer o |  | Non-accelerated filer ý
|------------------------- |  | ------------------- |  | -----------------------

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes
o    No ý

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Title of Each Class of Common Stock

Number of Shares Outstanding
as of December 27, 2007Common Stock, 1¢ par value

1




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MARQUEE HOLDINGS INC. AND SUBSIDIARY
INDEX



|                             |  |                                                                                       |  | Page Number
|---------------------------- |  | ------------------------------------------------------------------------------------- |  | -----------
|PART IFINANCIAL INFORMATION |  |                                                                                      
|Item 1.                      |  | Financial Statements (unaudited)                                                      |  | 3          
|                             |  | Consolidated Statements of Operations                                                 |  | 3          
|                             |  | Consolidated Balance Sheets                                                           |  | 4          
|                             |  | Consolidated Statements of Cash Flows                                                 |  | 5          
|                             |  | Notes to Consolidated Financial Statements                                            |  | 6          
|Item 2.                      |  | Management's Discussion and Analysis of Financial Condition and Results of Operations |  | 26         
|Item 3.                      |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 43         
|Item 4T.                     |  | Controls and Procedures                                                               |  | 44         
|PART IIOTHER INFORMATION    |  |                                                                                      
|Item 1.                      |  | Legal Proceedings                                                                     |  | 45         
|Item 1A.                     |  | Risk Factors                                                                          |  | 45         
|Item 4.                      |  | Submission of Matters to a Vote of Security Holders                                   |  | 45         
|Item 6.                      |  | Exhibits                                                                              |  | 46         
|                             |  | Signatures                                                                            |  | 47         

2

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PART IFINANCIAL INFORMATION

Item 1.    Financial Statements. (Unaudited)

MARQUEE HOLDINGS INC. AND SUBSIDIARY        CONSOLIDATED STATEMENTS OF OPERATIONS        (in thousands)

|                                                                          |                                                 | Thirteen Weeks Ended                                     |                                         | Thirty-nine Weeks Ended |        
|------------------------------------------------------------------------- | ----------------------------------------------- | -------------------------------------------------------- | --------------------------------------- | ----------------------- | -------
|
|
|Revenues                                                                  |                                                 |                                                          |                                         |                         |        
|                                                                          | Admissions                                      |                                                          | $                                       | 378,406                 |        
|                                                                          | Concessions                                     |                                                          |                                         | 153,576                 |        
|                                                                          | Other revenue                                   |                                                          |                                         | 26,998                  |        
|                                                                          |                                                 |                                                          |                                         |                         |        
|                                                                          |                                                 | Total revenues                                           |                                         |                         | 558,980
|                                                                          |                                                 |                                                          |                                         |                         |        
|Costs and Expenses                                                        |                                                 |                                                          |                                         |                         |        
|                                                                          | Film exhibition costs                           |                                                          |                                         | 191,568                 |        
|                                                                          | Concession costs                                |                                                          |                                         | 17,554                  |        
|                                                                          | Operating expense                               |                                                          |                                         | 157,121                 |        
|                                                                          | Rent                                            |                                                          |                                         | 112,847                 |        
|                                                                          | General and administrative:                     |                                                          |                                         |                         |        
|                                                                          |                                                 | Merger, acquisition and transaction costs                |                                         |                         | 813    
|                                                                          |                                                 | Management fee                                           |                                         |                         | 1,250  
|                                                                          |                                                 | Other                                                    |                                         |                         | 11,853 
|                                                                          | Preopening expense                              |                                                          |                                         | 2,705                   |        
|                                                                          | Theatre and other closure (income) expense      |                                                          |                                         | 1,064                   |        
|                                                                          | Depreciation and amortization                   |                                                          |                                         | 62,324                  |        
|                                                                          | Disposition of assets and other (gains) expense |                                                          |                                         | 85                      |        
|                                                                          |                                                 |                                                          |                                         |                         |        
|                                                                          |                                                 | Total costs and expenses                                 |                                         |                         | 559,184
|                                                                          |                                                 |                                                          |                                         |                         |        
|                                                                          | Other expense (income)                          |                                                          |                                         |                         |        
|                                                                          |                                                 | Other                                                    |                                         |                         | (2,094 
|                                                                          |                                                 | Interest expense                                         |                                         |                         |        
|                                                                          |                                                 |                                                          | Corporate borrowings                    |                         |        
|                                                                          |                                                 |                                                          | Capital and financing lease obligations |                         |        
|                                                                          |                                                 | Equity in (earnings) losses of non-consolidated entities |                                         |                         | (7,507 
|                                                                          |                                                 | Investment income                                        |                                         |                         | (2,141 
|                                                                          |                                                 |                                                          |                                         |                         |        
|                                                                          |                                                 |                                                          | Total other expense                     |                         |        
|                                                                          |                                                 |                                                          |                                         |                         |        
|Earnings (loss) from continuing operations before income taxes            |                                                 |                                                          | (32,293                                 | )                       |        
|Income tax provision (benefit)                                            |                                                 |                                                          | (22,800                                 | )                       |        
|                                                                          |                                                 |                                                          |                                         |                         |        
|Earnings (loss) from continuing operations                                |                                                 |                                                          | (9,493                                  | )                       |        
|Earnings (loss) from discontinued operations, net of income tax provision |                                                 |                                                          |                                        |                         |        
|                                                                          |                                                 |                                                          |                                         |                         |        
|Net earnings (loss)                                                       |                                                 | $                                                        | (9,493                                  | )                       | $      
|                                                                          |                                                 |                                                          |                                         |                         |        

See Notes to Consolidated Financial Statements.

3

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MARQUEE HOLDINGS INC. AND SUBSIDIARY        CONSOLIDATED BALANCE SHEETS        (in thousands, except share data)

|                                                   |                                                                                                                                                             | December 27, 2007                          |           | March 29, 2007 |          
|-------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | --------- | -------------- | ---------
|
|ASSETS                                             |                                                                                                                                                             |                                            |           |                |          
|Current assets:                                    |                                                                                                                                                             |                                            |           |                |          
|                                                   | Cash and equivalents                                                                                                                                        |                                            | $         | 188,391        |          
|                                                   | Receivables, net of allowance for doubtful accounts of $1,314 as of December 27, 2007 and $1,221 as of March 29, 2007                                       |                                            |           | 82,900         |          
|                                                   | Other current assets                                                                                                                                        |                                            |           | 32,945         |          
|                                                   |                                                                                                                                                             |                                            |           |                |          
|                                                   |                                                                                                                                                             | Total current assets                       |           |                | 304,236  
|Property, net                                      |                                                                                                                                                             |                                            | 1,256,078 |                |          
|Intangible assets, net                             |                                                                                                                                                             |                                            | 212,286   |                |          
|Goodwill                                           |                                                                                                                                                             |                                            | 2,065,603 |                |          
|Other long-term assets                             |                                                                                                                                                             |                                            | 90,623    |                |          
|Noncurrent assets held for sale                    |                                                                                                                                                             |                                            | 2,300     |                |          
|                                                   |                                                                                                                                                             |                                            |           |                |          
|                                                   |                                                                                                                                                             | Total assets                               |           | $              | 3,931,126
|                                                   |                                                                                                                                                             |                                            |           |                |          
|LIABILITIES AND STOCKHOLDER'S EQUITY               |                                                                                                                                                             |                                            |           |                |          
|Current liabilities:                               |                                                                                                                                                             |                                            |           |                |          
|                                                   | Accounts payable                                                                                                                                            |                                            | $         | 194,238        |          
|                                                   | Accrued expenses and other liabilities                                                                                                                      |                                            |           | 150,679        |          
|                                                   | Deferred revenues and income                                                                                                                                |                                            |           | 150,844        |          
|                                                   | Current maturities of corporate borrowings and capital and financing lease obligations                                                                      |                                            |           | 10,493         |          
|                                                   |                                                                                                                                                             |                                            |           |                |          
|                                                   |                                                                                                                                                             | Total current liabilities                  |           |                | 506,254  
|Corporate borrowings                               |                                                                                                                                                             |                                            | 1,850,572 |                |          
|Capital and financing lease obligations            |                                                                                                                                                             |                                            | 66,697    |                |          
|Deferred revenuesfor exhibitor services agreement |                                                                                                                                                             |                                            | 229,328   |                |          
|Other long-term liabilities                        |                                                                                                                                                             |                                            | 363,496   |                |          
|                                                   |                                                                                                                                                             |                                            |           |                |          
|                                                   |                                                                                                                                                             | Total liabilities                          |           |                | 3,016,347
|                                                   |                                                                                                                                                             |                                            |           |                |          
|Stockholder's equity:                              |                                                                                                                                                             |                                            |           |                |          
|                                                   | Common Stock, 1 share issued as of December 27, 2007 and March 29, 2007 with 1¢ par value                                                                   |                                            |           |               |          
|                                                   | Class A-1 Common Stock voting ($.01 par value, 1,500,000 shares authorized; 382,475.00000 shares issued and outstanding as of March 29, 2007)               |                                            |           |               |          
|                                                   | Class A-2 Common Stock voting ($.01 par value, 1,500,000 shares authorized; 382,475.00000 shares issued and outstanding as of March 29, 2007)               |                                            |           |               |          
|                                                   | Class N Common Stock nonvoting ($.01 par value, 375,000 shares authorized; 5,128.77496 shares issued and outstanding as of March 29, 2007)                  |                                            |           |               |          
|                                                   | Class L-1 Common Stock voting ($.01 par value, 1,500,000 shares authorized; 256,085.61252 shares issued and outstanding as of March 29, 2007)               |                                            |           |               |          
|                                                   | Class L-2 Common Stock voting ($.01 par value, 1,500,000 shares authorized; 256,085.61252 shares issued and outstanding as of March 29, 2007, respectively) |                                            |           |               |          
|                                                   | Additional paid-in capital                                                                                                                                  |                                            |           | 1,046,611      |          
|                                                   | Accumulated other comprehensive loss                                                                                                                        |                                            |           | (13,545        | )        
|                                                   | Accumulated deficit                                                                                                                                         |                                            |           | (118,287       | )        
|                                                   |                                                                                                                                                             |                                            |           |                |          
|                                                   |                                                                                                                                                             | Total stockholder's equity                 |           |                | 914,779  
|                                                   |                                                                                                                                                             |                                            |           |                |          
|                                                   |                                                                                                                                                             | Total liabilities and stockholder's equity |           | $              | 3,931,126
|                                                   |                                                                                                                                                             |                                            |           |                |          

See Notes to Consolidated Financial Statements.

4

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MARQUEE HOLDINGS INC. AND SUBSIDIARY        CONSOLIDATED STATEMENTS OF CASH FLOWS        (in thousands)

|                                                                                           |                                                                                          | Thirty-nine Weeks Ended                                       |         
|------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------- | ------------------------------------------------------------- | --------
|
|
|INCREASE (DECREASE) IN CASH AND EQUIVALENTS                                                |                                                                                          |                                                               |         
|Cash flows from operating activities:                                                      |                                                                                          |                                                               |         
|Net earnings (loss)                                                                        |                                                                                          | $                                                             | 30,792  
|Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |                                                                                          |                                                               |         
|                                                                                           | Depreciation and amortization                                                            |                                                               |         
|                                                                                           | Amortization of discount on corporate borrowings                                         |                                                               |         
|                                                                                           | Stock-based compensation                                                                 |                                                               |         
|                                                                                           | Non-cash portion of pension and postretirement expense                                   |                                                               |         
|                                                                                           | Deferred income taxes                                                                    |                                                               |         
|                                                                                           | Release of valuation allowance recorded in purchase accounting for deferred income taxes |                                                               |         
|                                                                                           | Equity in (earnings) losses from investments, net of distributions                       |                                                               |         
|                                                                                           | Disposition of assets and other gains                                                    |                                                               |         
|                                                                                           | Change in assets and liabilities:                                                        |                                                               |         
|                                                                                           |                                                                                          | Receivables                                                   |         
|                                                                                           |                                                                                          | Other assets                                                  |         
|                                                                                           |                                                                                          | Accounts payable                                              |         
|                                                                                           |                                                                                          | Accrued expenses and other liabilities                        |         
|                                                                                           | Other, net                                                                               |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|                                                                                           | Net cash provided by operating activities                                                |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|Cash flows from investing activities:                                                      |                                                                                          |                                                               |         
|                                                                                           | Capital expenditures                                                                     |                                                               |         
|                                                                                           | Construction project costs reimbursable by landlord                                      |                                                               |         
|                                                                                           | Net change in reimbursable construction advances                                         |                                                               |         
|                                                                                           | Partnership investments                                                                  |                                                               |         
|                                                                                           | Proceeds from disposition of Fandango                                                    |                                                               |         
|                                                                                           | Proceeds from disposition of HGCSA                                                       |                                                               |         
|                                                                                           | Proceeds from restricted cash                                                            |                                                               |         
|                                                                                           | LCE screen integration payments                                                          |                                                               |         
|                                                                                           | Proceeds on disposition of long-term assets                                              |                                                               |         
|                                                                                           | Proceeds from disposal-discontinued operations                                           |                                                               |         
|                                                                                           | Purchase of software and other computer equipment                                        |                                                               |         
|                                                                                           | Other, net                                                                               |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|                                                                                           | Net cash provided by (used in) investing activities                                      |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|Cash flows from financing activities:                                                      |                                                                                          |                                                               |         
|                                                                                           | Construction project costs reimbursed by landlord                                        |                                                               |         
|                                                                                           | Repayment of Cinemex Credit Facility                                                     |                                                               |         
|                                                                                           | Principal payments under capital and financing lease obligations                         |                                                               |         
|                                                                                           | Principal payments under mortgage                                                        |                                                               |         
|                                                                                           | Principal payments on Term Loan B                                                        |                                                               |         
|                                                                                           | Change in construction payables                                                          |                                                               |         
|                                                                                           | Dividends paid to Parent                                                                 |                                                               |         
|                                                                                           | Deferred financing costs                                                                 |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|                                                                                           | Net cash used in financing activities                                                    |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|                                                                                           | Effect of exchange rate changes on cash and equivalents                                  |                                                               |         
|                                                                                           |                                                                                          |                                                               |         
|Net increase (decrease) in cash and equivalents                                            |                                                                                          |                                                               | (131,142
|Cash and equivalents at beginning of period                                                |                                                                                          |                                                               | 319,533 
|                                                                                           |                                                                                          |                                                               |         
|Cash and equivalents at end of period                                                      |                                                                                          | $                                                             | 188,391 
|                                                                                           |                                                                                          |                                                               |         
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                          |                                                                                          |                                                               |         
|Cash paid during the period for:                                                           |                                                                                          |                                                               |         
|                                                                                           |                                                                                          | Interest (including amounts capitalized of $1,018 and $1,405) |         
|                                                                                           |                                                                                          | Income taxes paid                                             |         
|                                                                                           | Schedule of non-cash investing and financing activities:                                 |                                                               |         
|                                                                                           |                                                                                          | Assets capitalized under EITF 97-10                           |         

Notes to Consolidated Financial Statements.

5

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MARQUEE HOLDINGS INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 27, 2007
(Unaudited)

NOTE 1BASIS OF PRESENTATION

Marquee Holdings Inc. ("Holdings") is an intermediate holding company owned by AMC Entertainment Holdings, Inc. ("Parent"), an entity created on
June 6, 2007, and the principal stockholder of Holdings. Holdings was formed for the purpose of acquiring AMC Entertainment Inc. ("AMCE") pursuant to a definitive merger agreement
approved by AMCE's Board of Directors on July 22, 2004. Holdings is a holding company with no operations of its own and it has one direct subsidiary, AMCE.

On
June 11, 2007, Marquee Merger Sub Inc. ("merger sub"), a wholly-owned subsidiary of Parent, merged with and into Holdings, with Holdings continuing as the surviving
corporation (the "holdco merger"). As a result of the holdco merger, (i) Holdings became a wholly owned subsidiary of Parent, a newly formed entity controlled by J.P. Morgan
Partners, LLC, Apollo Management, L.P. and certain related investment funds and affiliates of Bain Capital Partners, The Carlyle Group and Spectrum Equity Investors (collectively with
J.P. Morgan Partners, LLC and Apollo Management, L.P., the "Sponsors"), (ii) each share of Holdings' common stock that was issued and outstanding immediately prior to the
effective time of the holdco merger was automatically converted into a substantially identical share of common stock of Parent, and (iii) as further described in this report, each of Holdings'
governance agreements was superseded by a substantially identical governance agreement entered into by and among Parent, the Sponsors and Holdings' other stockholders. The holdco merger was effected
by the Sponsors to facilitate a previously announced debt financing by Parent and a related dividend to Parent.

AMCE,
through its direct and indirect subsidiaries, including American Multi-Cinema, Inc. ("AMC") and its subsidiaries, Grupo Cinemex, S.A. de C.V. ("Cinemex") and AMCE
Entertainment International, Inc. ("AMCEI") and its subsidiaries (collectively with Holdings and AMCE, unless the context otherwise requires, the "Company"), is principally involved in the
theatrical exhibition business and owns, operates or has interests in theatres located in the United States and Canada ("U.S. and
Canada") and in Mexico, China (Hong Kong), France, and the United Kingdom. The Company's U.S. and Canada theatrical exhibition business is conducted through AMC and AMCEI. The Company's International
theatrical exhibition business is conducted primarily through Cinemex and AMCEI. See Note 2 for a discussion of the Merger with Loews on January 26, 2006.

The
accompanying unaudited consolidated financial statements have been prepared in response to the requirements of Form 10-Q and should be read in conjunction with the
Company's annual report on Form 10-K for the year (52 weeks) ended March 29, 2007. In the opinion of management, these interim financial statements reflect all
adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the Company's financial position and results of operations. Due to the seasonal nature of the Company's
business, results for the thirty-nine weeks ended December 27, 2007 are not necessarily indicative of the results to be expected for the fiscal year (53 weeks) ending
April 3, 2008.

The
March 29, 2007 consolidated balance sheet data was derived from the audited balance sheet included in the Form 10-K, but does not include all disclosures
required by generally accepted accounting principles.

Certain
amounts have been reclassified from prior period consolidated financial statements to conform with the current period presentation.

Revenues:The Company defers 100% of the revenue associated with the sales of discounted theatre
tickets until such time as the items are redeemed or management believes future redemption to be remote. During the thirteen weeks ended September 27, 2007, management changed its estimate of
when it believes future redemption to be remote for discounted theatre tickets from 24 months from the date of

6

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sale
to 18 months from the date of sale. Management believes the 18 month estimate is supported by its continued development of redemption history and that it is reflective of
management's current best estimate. This change in estimate had the effect of increasing other revenues by approximately $2,100,000 and $6,300,000 during the thirteen and thirty-nine weeks
ended December 27, 2007.

NOTE 2ACQUISITIONS

On June 20, 2005, Holdings, then the parent company of AMCE, entered into a merger agreement with LCE Holdings, Inc. ("LCE Holdings"), the parent of
Loews Cineplex Entertainment Corporation ("Loews"), pursuant to which LCE Holdings merged with and into Holdings, with Holdings continuing
as the holding company for the merged businesses, and Loews merged with and into AMCE, with AMCE continuing after the merger (the "Merger" and collectively, the "Mergers"). The transaction closed on
January 26, 2006. Upon completion of the Mergers, the stockholders of Holdings immediately prior to the Mergers, including affiliates of J.P. Morgan Partners, LLC and Apollo
Management, L.P., held approximately 60% of the outstanding capital stock of Holdings, and the stockholders of LCE Holdings immediately prior to the Merger, including affiliates of Bain Capital
Partners, LLC, The Carlyle Group and Spectrum Equity Investors, held approximately 40% of the outstanding capital stock of Holdings.

The
Company has accounted for the Merger as a purchase in accordance with SFAS No. 141, "Business Combinations",for an estimated
purchase price of $537,171,000. Results of operations of Loews are included in the Company's Consolidated Statements of Operations from January 26, 2006. The acquisition included 112 theatres
with 1,308 screens in the United States, 40 theatres with 443 screens in Mexico (Cinemex), 4 managed/joint venture theatres with 55 screens in the United States and a 50% interest in Yelmo Cineplex,
S.L. ("Yelmo"), which operated 27 theatres with 311 screens in Spain that was accounted for using the equity method until December 2006 when the Company disposed of its investment in Yelmo. The Merger
did not constitute a change in control.

NOTE 3DISCONTINUED OPERATIONS

On May 11, 2006, the Company sold two of its wholly owned subsidiaries, AMC Entertainment España S.A. and Actividades Multi Cinemeas
E Espectáculos, LDA (collectively "Iberia"), which owned and operated 4 theatres with 86 screens in Spain and 1 theatre with 20 screens in Portugal, for a cash sales price of
$35,446,000. At the date of the sale these operations did not meet the criteria for discontinued operations because of continuing involvement in the region through an equity method investment in
Yelmo. In December 2006, the Company disposed of its investment in Yelmo, which owned and operated 27 theatres with 310 screens in Spain, for proceeds of $52,137,000. There was no gain or loss
recorded on the sale of Yelmo. The Company no longer has continuing involvement in the region as a result of the sale of Yelmo and the results of the operations in Iberia have been classified as
discontinued operations as the Company no longer has operations or significant cash flows from the Iberia component.

Information
presented for all periods reflects the discontinued operations classification. All affected amounts within the consolidated financial statements have been adjusted
accordingly. The results of operations of the Iberia theatres were previously reported in the Company's International theatrical exhibition operating segment. The Company has recorded a gain on sale
of Iberia of approximately $2,609,000 during fiscal 2007 which is included in discontinued operations. Goodwill of $11,712,000 was allocated to the Iberia theatres in connection with the sale.

7

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Components
of amounts reflected as earnings (loss) from discontinued operations for Iberia in the Company's Consolidated Statements of Operations are presented in the following table:

Statements of operations data (in thousands):

|                                             |                                       | Thirteen Weeks Ended     |     | Thirty-nine Weeks Ended |   
|-------------------------------------------- | ------------------------------------- | ------------------------ | --- | ----------------------- | --
|
|Revenues                                     |                                       |                          |     |                         |   
|                                             | Admissions                            |                          | $   |                        |   
|                                             | Concessions                           |                          |     |                        |   
|                                             | Other revenue                         |                          |     |                        |   
|                                             |                                       |                          |     |                         |   
|                                             |                                       | Total revenues           |     |                         |  
|                                             |                                       |                          |     |                         |   
|Costs and Expenses                           |                                       |                          |     |                         |   
|                                             | Film exhibition costs                 |                          |     |                        |   
|                                             | Concession costs                      |                          |     |                        |   
|                                             | Operating expense                     |                          |     |                        |   
|                                             | Rent                                  |                          |     |                        |   
|                                             | General and administrativeother      |                          |     |                        |   
|                                             | Depreciation and amortization         |                          |     |                        |   
|                                             | Disposition of assets and other gains |                          |     | 41                      |   
|                                             |                                       |                          |     |                         |   
|                                             |                                       | Total costs and expenses |     |                         | 41
|                                             |                                       |                          |     |                         |   
|Interest expense                             |                                       |                          |    |                         |   
|Investment income                            |                                       |                          |    |                         |   
|                                             |                                       |                          |     |                         |   
|                                             |                                       | Total other expense      |     |                         |  
|                                             |                                       |                          |     |                         |   
|Earnings (loss) before income taxes          |                                       |                          | (41 | )                       |   
|Income tax provision                         |                                       |                          |    |                         |   
|                                             |                                       |                          |     |                         |   
|Earnings (loss) from discontinued operations |                                       | $                        | (41 | )                       | $ 
|                                             |                                       |                          |     |                         |   

NOTE 4COMPREHENSIVE EARNINGS (LOSS)

The components of comprehensive earnings (loss) are as follows (in thousands):

|                                                                                            |  | Thirteen Weeks Ended |         | Thirty-nine Weeks Ended |  
|------------------------------------------------------------------------------------------- |  | -------------------- | ------- | ----------------------- | -
|
|Net earnings (loss)                                                                         |  | $                    | (9,493  | )                       | $
|Foreign currency translation adjustment                                                     |  |                      | 455     |                         |  
|Pension liability adjustments                                                               |  |                      | (220    | )                       |  
|Change in fair value of cash flow hedges                                                    |  |                      | (2,281  | )                       |  
|Losses (gains) on interest rate swaps reclassified to interest expense corporate borrowings |  |                      | (99     | )                       |  
|(Decrease) increase in unrealized gain on marketable equity securities                      |  |                      | (62     | )                       |  
|                                                                                            |  |                      |         |                         |  
|Total comprehensive earnings (loss)                                                         |  | $                    | (11,700 | )                       | $
|                                                                                            |  |                      |         |                         |  

8

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NOTE 5GOODWILL AND OTHER INTANGIBLE ASSETS

Activity of goodwill by operating segment is presented below.

|(In thousands)                                    |  | U.S. and Canada |           | International |   | Total   |  
|------------------------------------------------- |  | --------------- | --------- | ------------- | - | ------- | -
|Balance as of March 29, 2007                      |  | $               | 1,870,998 |               | $ | 195,855 |  
|Currency translation adjustment                   |  |                 |          |               |   | 2,600   |  
|Fair value deferred tax asset adjustments LCE(1)  |  |                 | (8,329    | )             |   |        |  
|Fair value change in fiscal 2007 APB assertion(2) |  |                 | 6,220     |               |   |        |  
|Other fair value adjustments LCE(3)               |  |                 | (933      | )             |   | (808    | )
|                                                  |  |                 |           |               |   |         |  
|Balance as of December 27, 2007                   |  | $               | 1,867,956 |               | $ | 197,647 |  
|                                                  |  |                 |           |               |   |         |  

---

Activity
of other intangible assets is presented below.

|                            |                                                  |  |               | December 27, 2007 |   | March 29, 2007 | 
|--------------------------- | ------------------------------------------------ |  | ------------- | ----------------- | - | -------------- | 
|
|Acquired Intangible Assets: |                                                  |  |               |                   |   |                | 
|                            | Amortizable Intangible Assets:                   |  |               |                   |   |                | 
|                            | Favorable leases                                 |  | 1 to 12 years |                   | $ | 115,291        | 
|                            | Loyalty program                                  |  | 3 years       |                   |   | 46,000         | 
|                            | LCE trade name                                   |  | 3 years       |                   |   | 2,300          | 
|                            | LCE/Cinemex advertising and management contracts |  | 2 to 23 years |                   |   | 51,870         | 
|                            | Other intangible assets                          |  | 1 to 15 years |                   |   | 19,088         | 
|                            |                                                  |  |               |                   |   |                | 
|                            | Total, amortizable                               |  |               |                   | $ | 234,549        | 
|                            |                                                  |  |               |                   |   |                | 
|                            | Unamortized Intangible Assets:                   |  |               |                   |   |                | 
|                            | AMC trademark                                    |  |               |                   | $ | 74,000         | 
|                            | Cinemex trademark                                |  |               |                   |   | 7,018          | 
|                            |                                                  |  |               |                   |   |                | 
|                            | Total, unamortized                               |  |               |                   | $ | 81,018         | 
|                            |                                                  |  |               |                   |   |                | 

Amortization
expense associated with the intangible assets noted above is as follows:

|                      |  | Thirteen Weeks Ended |       | Thirty-nine Weeks Ended
|--------------------- |  | -------------------- | ----- | -----------------------
|
|Recorded Amortization |  | $                    | 6,354 |                        

9

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Estimated amortization expense for the next five fiscal years for intangible assets owned as of December 27, 2007 is projected below:

|(In thousands)                 |  | 2008 |        | 2009 |   | 2010   |  | 2011 |        | 2012
|------------------------------ |  | ---- | ------ | ---- | - | ------ |  | ---- | ------ | ----
|Projected amortization expense |  | $    | 28,406 |      | $ | 22,195 |  | $    | 16,494 |     

NOTE 6STOCKHOLDER'S EQUITY

On June 11, 2007, merger sub, a wholly-owned subsidiary of Parent, merged with and into Holdings, with Holdings continuing as the surviving corporation. As
a result of the holdco merger, (i) Holdings became a wholly owned subsidiary of Parent, a newly formed entity controlled by the Sponsors, (ii) each share of Holdings' common stock that
was issued and outstanding immediately prior to the effective time of the holdco merger was automatically converted into a substantially identical share of common stock of Parent, and (iii) as
further described in this report, each of Holdings' governance agreements was superseded by a substantially identical governance agreement entered into by and among Parent, the Sponsors and Holdings'
other stockholders. The holdco merger was effected by the Sponsors to
facilitate a previously announced debt financing by Parent and a related dividend to Parent. Holdings used cash derived from AMCE to pay a dividend to Parent of $270,588,000, which reduced additional
paid-in capital during the thirty-nine weeks ended December 27, 2007. Holdings reclassified $14,000 of par value on the converted common stock to additional
paid-in capital in connection with the holdco merger during the thirty-nine weeks ended December 27, 2007.

Holdings
accounts for stock options using the fair value method of accounting as prescribed by SFAS 123(R) and SAB 107 and 110 and has valued the options using the
Black-Scholes formula. Holdings has recorded $(65,000) and $4,160,000 of stock-based compensation expense (income) related to these options within General and Administrative: Other, during the
thirteen weeks ended December 27, 2007 and December 28, 2006, respectively, and has recognized an income tax benefit of $0 in its Consolidated Statements of Operations during the
thirteen weeks ended December 27, 2007 and December 28, 2006. Holdings has recorded $955,000 and $6,216,000 of stock-based compensation expense related to these options within General
and Administrative: Other, during the thirty-nine weeks ended December 27, 2007 and December 28, 2006, respectively, and has recognized an income tax benefit of $0 in its
Consolidated Statement of Operations during the thirty-nine weeks ended December 27, 2007 and December 28, 2006. One of the holders of Parent's stock options has written put
rights deemed to be in the holder's control associated with his options whereby he can require Holdings to repurchase his options. These liability-classified options are required to be remeasured
during each reporting period. A liability of $5,479,000 and $7,130,000 is recorded within current liabilities in the Consolidated Balance Sheets as of December 27, 2007 and March 29,
2007, respectively, for all options containing written put rights. The Company accounts for stock options using the fair value method of accounting as prescribed by SFAS 123(R) and
SAB 107 and 110 and has valued the options using the Black-Scholes formula including a contemporaneous valuation by an unrelated specialist as of December 27, 2007 which indicated a fair
value price per share of the underlying shares of $1,200 per share. On June 12, 2007, the holder of the liability classified options exercised options on 500 shares at an exercise price of
$1,000 per share, which was paid to Parent. Holdings reclassified $412,000 of liabilityclassified options to additional paid-in capital in connection with the exercise.
Holdings made adjustments to reduce the liability associated with the exercised options and to reduce stock-based compensation expense by $23,000 during the thirty-nine weeks ended
December 27, 2007. Holdings made adjustments to reduce the liability associated with the unexercised liability-classified options and to reduce stock-based compensation expense by $355,000
during the thirty-nine weeks ended December 27, 2007, based on declines in the estimated fair value of the outstanding options.

In
connection with the holdco merger, on June 11, 2007, Parent adopted an amended and restated 2004 stock option plan (f/k/a the 2004 Stock Option Plan of Marquee
Holdings Inc.), originally adopted by Holdings on December 22, 2004 and previously amended by Holdings on November 7, 2006. Because the

10

---



employees
to whom the options were granted are employed by AMCE, AMCE continues to reflect the stock-based compensation expense associated with the options within its consolidated statement of
operations. The option exercise price per share of $1,000 was adjusted to $491 per share pursuant to the antidilution provisions of the 2004 Stock Option Plan to give effect to the payment of a one
time non-recurring dividend paid by Parent on June 15, 2007 of $652,800,000 to the holders of its 1,282,750 shares of common stock. The Company applied the guidance in
SFAS 123(R) and determined that there was no incremental value transferred as a result of the modification and as a result no additional compensation cost to recognize.

The
Company's Chairman of the Board, President and Chief Executive Officer, Peter C. Brown, has an amended and restated employment agreement that generally will revert to his prior
agreement in the event an initial public offering of Parent does not occur on or before December 31, 2008. In the event of an initial public offering on or before December 31, 2008,
within 15 days after such initial public offering, Mr. Brown shall receive a grant of restricted stock or restricted stock units having a value of $2,567,000 on the date of grant based
on the initial public offering price. This grant was an inducement for Mr. Brown to enter into his amended and restated employment agreement, whereby the term of his employment would be shorter
than in his prior employment agreement and he would be subject to certain restrictive covenants that did not exist in his current employment agreement. Such grant shall vest in three equal annual
installments on the first three anniversaries of the grant date.

On
November 14, 2007, we entered into an agreement with Richard T. Walsh (formerly executive vice president, AMC Entertainment Inc., and chairman, AMC film programming),
which extended the exercise period applicable to his outstanding vested stock options from 90 days following his departure on August 17, 2007 until 60 days after an initial public
offering of the common stock of AMC Entertainment Holdings, Inc., or in the event of no initial public offering has occurred by June 16, 2008, until January 2, 2009. We have
accounted for the extension of the exercise term for vested options for Mr. Walsh as a modification under SFAS No. 123(R),Share Based
Payment.We measured the compensation cost for the modified award by comparing the fair value of the modified award and the fair value of the original award immediately before
it was modified, and we recognized a charge to expense and an offsetting increase to additional paid-in capital for the incremental fair value of the vested awards, which was determined to
be $32,326 as calculated using the Black-Scholes option pricing model, during the thirteen weeks ended December 27, 2007. Because Mr. Walsh held no unvested awards and no unvested awards
were modified, there is no additional compensation cost to recognize in the future related to his awards.

As
discussed in Note 11Income Taxes, the Company adopted the provisions of FIN 48. The cumulative effect of the change on adoption charged to accumulated
deficit was $5,373,000.

NOTE 7INVESTMENTS

Investments in non-consolidated affiliates and certain other investments accounted for under the equity method generally include all entities in which
the Company or its subsidiaries have significant influence, but not more than 50% voting control. Investments in non-consolidated affiliates as of December 27, 2007, include an
18.6% interest in National CineMedia, LLC, a 50% interest in three domestic motion picture theatres, a 26% equity interest in Movietickets.com and a 33.3% interest in Digital Cinema
Implementation Partners, LLC. Investments as of December 28, 2006 include a 50% interest in Hoyts General Cinemas South America ("HGCSA"), an entity that operated 17 theatres in South
America, which was disposed of in July 2007. Financial results for the thirteen and thirty-nine weeks ended December 27, 2007 include a 50% equity interest in Yelmo, which was
disposed of in December 2006.

Condensed
financial information of our significant non-consolidated equity method investments is shown below. Amounts are presented under U.S. GAAP for the periods of
ownership by the Company.

11

---



Operating
Results:

|                                                    |  | Thirteen Weeks Ended |         | Thirty-nine Weeks Ended
|--------------------------------------------------- |  | -------------------- | ------- | -----------------------
|
|Revenues                                            |  | $                    | 100,468 |                        
|Operating costs & expenses                          |  |                      | 64,397  |                        
|                                                    |  |                      |         |                        
|Net earnings (loss)                                 |  | $                    | 36,071  |                        
|                                                    |  |                      |         |                        
|The Company's recorded equity in (earnings) loss(1) |  | $                    | (7,507  | )                      

---

In
May 2007 the Company disposed of its investment in Fandango, accounted for using the cost method, for total expected proceeds of approximately $20,000,000, of which $18,000,000 was
received in May and September 2007, and has recorded a gain on the sale included in investment income of approximately $16,000,000. In July 2007 the Company disposed of its investment in HGCSA for
total proceeds of approximately $30,000,000 and has recorded a gain on the sale included in equity in earnings of non-consolidated entities of approximately $18,800,000.

As
of December 27, 2007 and March 29, 2007, the Company has recorded $1,000,000 and $900,000, respectively, of amounts due from National CineMedia, LLC related to
on-screen advertising revenue. As of December 27, 2007 and March 29, 2007, the Company has recorded $9,800,000 and $17,200,000, respectively, of amounts due to National
CineMedia, LLC related to the Exhibitor Services Agreement and the Loews Screen Integration Agreement. The Company recorded revenues for advertising from National CineMedia, LLC of
$10,800,000 and $32,000,000 during the thirty-nine weeks ended December 27, 2007 and December 28, 2006, respectively.

NOTE 8CORPORATE BORROWINGS AND CAPITAL AND FINANCING LEASE OBLIGATION

Capital and Financing Lease Obligations:Occasionally, the Company is responsible for the
construction of leased theatres and for paying project costs that are in excess of an agreed upon amount to be reimbursed from the developer. Emerging Issues Task Force (EITF) Issue
No. 97-10The Effect of Lessee Involvement in Asset Constructionrequires the Company to be considered the owner (for accounting
purposes) of these types of projects during the construction period, and therefore the Company is required to assess these projects upon completion of construction for sale and leaseback accounting
under SFAS No. 98Accounting for Leases. The Company recorded additions to its financing lease obligations of $21,841,000 during the
thirty-nine weeks ended December 27, 2007 for one theatre that opened during this period.

Derivative Instruments:The Company enters into interest rate swap agreements with major banks and
institutional lenders as part of its interest rate risk management strategy. The objective for holding these derivative instruments is to reduce the exposure to variability in cash flows relating to
interest payments on

12

---



certain
outstanding debt. All financial instruments are used solely for hedging purposes and are not issued or held for speculative reasons.

The
interest rate swaps have been designated and have qualified for cash flow hedge accounting in accordance with SFAS No. 133,Accounting for Derivative
Instruments and Hedging Activities, (SFAS 133). The related mark-to-market gain or loss on qualifying hedges is deferred as a component of
accumulated other comprehensive income (loss), to the extent the cash flow hedges are effective, and is reclassified into interest expense corporate borrowings in the period during which the hedged
transaction affects earnings. Any ineffective portion of the hedges is recognized currently in the consolidated statements of operations in investment income.

In
October 2007, AMCE executed an interest rate swap agreement, scheduled to mature in April 2009, to hedge $200,000,000 of its variable rate debt obligation. Under the terms of the
agreement, the Company pays interest at a fixed rate of 4.707% and receives interest at a variable rate based on 1-month U.S. Dollar LIBOR-BBA.

In
August 2005, Grupo Cinemex entered into an interest rate swap with a notional amount ranging between 283,932,000 and 907,146,000 Mexican pesos ($26,151,000 and $83,894,000) to hedge
its variable
rate debt obligation. Under the terms of the agreement, the Company pays interest at a fixed rate of 9.89% and receives interest at a variable rate based on 1-month MXN TIIE. In November
2007, the Company redesignated the interest rate swap prospectively in a new cash flow hedging relationship. In addition, at the date of redesignation, the interest rate swap had an unrealized gain of
approximately $1,091,000 recorded in accumulated other comprehensive loss that will be reclassified against interest expense corporate borrowings over the remaining term of the hedged period, through
August 2009. The effective portion of the changes in fair value of the interest rate swap under the hedging relationship will be deferred in accumulated other comprehensive income (loss) and will be
reclassified into interest expense corporate borrowings when the hedged forecasted transactions affect earnings.

At
December 27, 2007, the aggregate fair value of the interest rate swaps was a liability of approximately $3,628,000, which was recorded as a component of other
long-term liabilities. The estimated fair value for the interest rate swap agreements was based on prevailing market data that represents the theoretical cost the Company would have to pay
to terminate the transactions. At December 27, 2007, the Company had an unrealized loss of approximately $1,124,000 recorded in accumulated other comprehensive loss with offsetting entries to
other long-term liabilities. During the next 12 months the Company expects to reclassify approximately $918,000 of the unrealized loss in accumulated other comprehensive loss against interest
expense corporate borrowings. The ineffective portion of the cash flow hedge, which is not material for any reporting period presented, is immediately recognized in investment income.

The
Company is exposed to credit losses in the event of nonperformance by counterparties on interest rate swap agreements.

13

---



NOTE 9THEATRE AND OTHER CLOSURE AND DISPOSITION OF ASSETS

A rollforward of reserves for theatre and other closure is as follows (in thousands):

|                  |                                                            | Thirty-nine Weeks Ended December 27, 2007 |        | Thirty-nine Weeks Ended December 28, 2006 |  
|----------------- | ---------------------------------------------------------- | ----------------------------------------- | ------ | ----------------------------------------- | -
|
|Beginning balance |                                                            | $                                         | 17,621 |                                           | $
|                  | Theatre and other closure (income) expense(1)              |                                           |        | (15,034                                   | )
|                  | Transfer of deferred rent and capital lease obligations(1) |                                           |        | 6,474                                     |  
|                  | Purchase price adjustment                                  |                                           |        |                                          |  
|                  | Cash (payments) receipts(1)                                |                                           |        | 718                                       |  
|                  |                                                            |                                           |        |                                           |  
|Ending balance    |                                                            | $                                         | 9,779  |                                           | $
|                  |                                                            |                                           |        |                                           |  

---

The
Company recorded a $4,845,000 liability related to the closure of Loews' duplicate administrative facilities in connection with the Mergers as part of purchase accounting. The
remaining unpaid balance is included above as a component of Merger Exit costs.

Theatre
and other closure reserves for leases that have not been terminated are recorded at the present value of the future contractual commitments for the base rents, taxes and
maintenance.

Theatre
closure reserves at December 27, 2007 by operating segment are as follows (in thousands):

|                                      |                        | December 27, 2007
|------------------------------------- | ---------------------- | -----------------
|U.S. and Canada Theatrical Exhibition |                        | $                
|International Theatrical Exhibition   |                        |                  
|Other                                 |                        |                  
|                                      |                        |                  
|                                      | Total segment reserves |                  
|Corporate                             |                        |                  
|                                      |                        |                  
|                                      |                        | $                
|                                      |                        |                  

NOTE 10RESTRUCTURING

The Company recognizes restructuring charges based upon the nature of the costs incurred. Costs resulting from one-time termination benefits where
employees are not required to render future service to receive the benefits are recognized and a liability is recorded when management (i) commits to a plan of termination which identifies the
number of employees to be terminated, their job classifications, locations, expected termination dates and when the plan is communicated to the employees and (ii) establishes the detailed terms
of the benefits to be received by employees.

14

---



If
employees are required to render service until they are terminated in order to receive the termination benefits, the benefits are measured at the fair value of the costs and related
liabilities at the communication date and are recognized ratably over the future service period from the communication date.

The
Company recorded a liability of $25,846,000 related to one-time termination benefits and other costs for the displacement of approximately 230 associates in connection
with the Mergers as part of purchase accounting.

A
summary of restructuring activity is set forth below (in thousands):

|                  |          | Thirty-nine Weeks Ended December 27, 2007 |    
|----------------- | -------- | ----------------------------------------- | ---
|
|Beginning balance |          | $                                         | 369
|                  | Payments |                                           |    
|                  |          |                                           |    
|Ending balance    |          | $                                         |   
|                  |          |                                           |    

As
of March 29, 2007, all restructuring reserves were included in our corporate operating segment. Payments related to the restructuring reserves were complete as of
December 27, 2007.

NOTE 11INCOME TAXES

Effective income tax rate

The difference between the effective tax rate on earnings before income taxes and the U.S. federal income tax statutory rate is as follows:

|                                               |  | Thirty-nine Weeks Ended |  
|---------------------------------------------- |  | ----------------------- | -
|
|Federal statutory rate                         |  | 35.0                    | %
|Foreign rate differential                      |  | (1.4                    | )
|Fiscal 2007 change in APB 23 assertion         |  | (14.5                   | )
|Change in FIN 48 reserve                       |  | (12.5                   | )
|Valuation allowance                            |  | 3.1                     |  
|State income taxes, net of federal tax benefit |  | 9.0                     |  
|Change in Mexico tax law                       |  | 4.0                     |  
|Other, net                                     |  | 5.7                     |  
|                                               |  |                         |  
|Effective tax rate                             |  | 28.4                    | %
|                                               |  |                         |  

The
Company accounts for income taxes in accordance with SFAS No. 109, Statement of Financial Accounting Standards ("SFAS 109"), "Accounting for
Income Taxes",which requires that deferred tax assets and liabilities be recognized, using enacted tax rates, for the tax effect of temporary differences between the financial
reporting and tax bases of recorded assets and liabilities. SFAS 109 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of
the deferred tax assets will not be realized.

Based
upon the consideration of all available evidence, the Company has provided a valuation allowance on its net deferred tax assets. The Company continues to record a full valuation
allowance against its net deferred tax assets due to the uncertainty regarding the ultimate realization of those assets in all taxing jurisdictions.

15

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The Company determines income tax expense for interim periods by applying SFAS No. 109 and APB Opinion No. 28,"Interim Financial
Reporting"in the U.S. federal jurisdiction, which prescribes the use of the full year's estimated effective tax rate in financial statements for interim periods. As such,
permanent differences such as state income taxes and changes in valuation allowance impact the Company's effective tax rate. The Company anticipates an ordinary loss for fiscal year 2008 in its Mexico
tax jurisdiction and is unable to recognize the tax benefit; and as a result the Company estimates the effective annual effective tax rate for Mexico separately. The Company has recognized income tax
provision related to the Mexico tax jurisdiction in the period in which income or loss is reported. The Company does not believe it can reliably estimate an effective annual tax rate in the Mexico tax
jurisdiction, as small changes in estimated loss would produce a large change in the estimated annual effective tax rate.

During
the thirteen weeks ended December 27, 2007, a new Mexican flat tax was signed into law. The tax is effective beginning January 1, 2008 and will replace Mexico's
asset tax. The tax is calculated differently than the prior asset tax, and has different deduction rules, which can effect the amount of deferred taxes the Company records. The Company recorded a
deferred tax liability and deferred income tax provision of $1,700,000 as a discrete item during the thirteen weeks ended December 27, 2007, primarily due to book and flat tax basis differences
in property.

During
the current period, income tax expense differed from the expected tax expense using the U.S. federal statutory tax rate of 35% primarily due to state income taxes, the change in
Mexico tax law, the FIN 48 liability write-off discussed below and a provision to accrual adjustment recorded relating to the estimated effect of the fiscal 2007 change in APB 23
assertion. During the thirteen weeks ended December 27, 2007, the Company reached resolution on a pre-filing agreement with a taxing authority which resulted in additional basis which was
deducted on the 2007 tax return. The deduction was for worthless stock as a result of a 2007 change in APB 23 assertion. As a result of the additional basis, the Company did not have to utilize
certain net operating loss carryforwards.

The
prior year disposition of Portugal and Spain operations did not have a material impact on the income tax provision, as the tax benefit derived from the sale was fully offset by an
increase in the valuation allowance.

Uncertain tax positions

Effective March 30, 2007, the Company adopted FASB Interpretation No. 48,"Accounting for Uncertainty in Income
Taxesan interpretation of FASB No. 109"("FIN 48"). This interpretation clarifies the accounting for uncertainty in income taxes recognized in an
entity's financial statements. FIN 48 indicates that the impact from adoption should be reflected as a cumulative effect adjustment from a change in accounting principle to the beginning
retained earnings amount reported for that fiscal year, unless the amount related to a previous business combination, in which case the impact would be recorded as an adjustment to the purchase price
allocation for the previous business combination. The adjustment to the purchase price would first reduce remaining goodwill and identified intangibles related to the business combination and the
residual would be reflected as a cumulative effect adjustment to beginning retained earnings.

Prior
to the adoption of FIN 48, the Company's financial statements did not include any tax contingencies, after consideration of the full valuation allowance recorded against net
deferred tax assets. As a result of the adoption of FIN 48, the Company recorded a $5,373,000 increase in current deferred tax assets, a $5,373,000 reduction of goodwill, a $5,373,000 current
FIN 48 liability and a $5,373,000 charge to the beginning accumulated deficit that is reported as a cumulative effect adjustment for a change in accounting principle to the opening balance
sheet position of stockholder's accumulated deficit at March 30, 2007.

During
December 2007, the IRS informed the Company of its acceptance of certain tax conclusions the Company had taken on a transaction the Company entered into during fiscal year ended
March 27,

16

---



2007
that were presented to the IRS in a Request for a Pre-Filing Agreement. As a result of the IRS accepting the Company's tax conclusions, the $5,373,000 reserve established with the
adoption of FIN 48 was resolved and the tax benefit was recorded during the quarter ended December 27, 2007.

The
amount of gross unrecognized tax benefits as of March 30, 2007 is $44,100,000. The amount of gross unrecognized tax benefits related to uncertainties that are estimated to
take more than 12 months to resolve is $38,800,000. The amount of unrecognized tax benefits decreased by $5,373,000 due to the resolution of an uncertain tax position during the thirteen weeks
ended December 27, 2007.

The
Company recognizes income tax-related interest expense and penalties as income tax expense and selling, general, and administrative expense, respectively. As of
March 30, 2007 the company did not have any interest or penalties accrued associated with unrecognized tax benefits. The liabilities for interest and penalties did not change as of
December 27, 2007.

There
are currently unrecognized tax benefits which we anticipate will be resolved in the next 12 months; however, the Company is unable at this time to estimate what the impact
on its unrecognized tax benefits will be.

The
Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. An IRS examination of the tax years
February 28, 2002 through December 31, 2003 of the former Loews Cineplex Entertainment Corporation and subsidiaries was concluded during fiscal 2007. An IRS examination for the tax year
ended March 31, 2005 began during 2007. As of December 27, 2007, the IRS has not proposed any adjustments. Generally, tax years beginning after March 28, 2002 are still open to
examination by various taxing authorities. Additionally, the company has net operating loss ("NOL") carryforwards for tax years ended October 31, 2000 through March 28,
2002 in the U.S. and various state jurisdictions which have carryforwards of varying lengths of time. These NOLs are subject to adjustment based on the statute of limitations of the return in which
they are utilized, not the year in which they are generated. Various state, local and foreign income tax returns are also under examination by taxing authorities. The Company does not believe that the
outcome of any examination will have a material impact on its financial statements.

NOTE 12EMPLOYEE BENEFIT PLANS

The Company sponsors a frozen non-contributory qualified defined benefit pension plan generally covering all employees age 21 or older who have
completed at least 1,000 hours of service in their first twelve months of employment, or in a calendar year ending thereafter, and who are not covered by a collective bargaining agreement. The
Company also offers eligible retirees the opportunity to participate in a health plan (medical and dental) and a life insurance plan. An employee may become eligible for these benefits at retirement
provided the employee is at least age 55 and has at least 15 years of credited service after age 40. The Company also sponsors a postretirement deferred compensation plan.

The
Company made a pension contribution of $4,437,000 during the thirty-nine weeks ended December 27, 2007.

The
measurement date used to determine pension and other postretirement benefits is January 1 of the fiscal year for which measurements are made.

17

---



Net
periodic benefit cost recognized for the plans during the thirteen weeks ended December 27, 2007 and December 28, 2006 consists of the following:

|                                         |                                       | Pension Benefits |     | Other Benefits
|---------------------------------------- | ------------------------------------- | ---------------- | --- | --------------
|
|Components of net periodic benefit cost: |                                       |                  |     |               
|                                         | Service cost                          |                  | $   | 183           
|                                         | Interest cost                         |                  |     | 1,100         
|                                         | Expected return on plan assets        |                  |     | (1,151        
|                                         | Curtailment gain                      |                  |     |              
|                                         | Amortization of gain                  |                  |     | (215          
|                                         | Amortization of transition obligation |                  |     | 10            
|                                         |                                       |                  |     |               
|Net periodic benefit cost (income)       |                                       | $                | (73 | )             
|                                         |                                       |                  |     |               

Net
periodic benefit cost recognized for the plans during the thirty-nine weeks ended December 27, 2007 and December 28, 2006 consists of the following:

|                                         |                                       | Pension Benefits |      | Other Benefits
|---------------------------------------- | ------------------------------------- | ---------------- | ---- | --------------
|
|Components of net periodic benefit cost: |                                       |                  |      |               
|                                         | Service cost                          |                  | $    | 379           
|                                         | Interest cost                         |                  |      | 3,300         
|                                         | Expected return on plan assets        |                  |      | (3,453        
|                                         | Curtailment gain                      |                  |      |              
|                                         | Amortization of gain                  |                  |      | (780          
|                                         | Amortization of transition obligation |                  |      | 30            
|                                         |                                       |                  |      |               
|Net periodic benefit cost (income)       |                                       | $                | (524 | )             
|                                         |                                       |                  |      |               

Certain
theatre employees are covered by union-sponsored pension and health and welfare plans. Company contributions into these plans are determined in accordance with provisions of
negotiated labor contracts. The Company estimates potential complete withdrawal liabilities for certain of these plans of approximately $7,600,000. As of December 27, 2007 other than a payment
of $423,000 in connection with the termination of one of the plans, no demand has been received by the Company related to these plans asserting either a complete or partial withdrawal liability.

18

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NOTE 13OPERATING SEGMENTS

Information about the Company's operations by operating segment is as follows (in thousands):

|                                      |  | Thirteen Weeks Ended |         | Thirty-nine Weeks Ended |  
|------------------------------------- |  | -------------------- | ------- | ----------------------- | -
|
|Revenues                              |  |                      |         |                         |  
|U.S. and Canada theatrical exhibition |  | $                    | 516,029 |                         | $
|International theatrical exhibition   |  |                      | 42,951  |                         |  
|Other                                 |  |                      |        |                         |  
|                                      |  |                      |         |                         |  
|Total revenues                        |  | $                    | 558,980 |                         | $
|                                      |  |                      |         |                         |  
|Segment Adjusted EBITDA               |  |                      |         |                         |  
|U.S. and Canada theatrical exhibition |  | $                    | 70,292  |                         | $
|International theatrical exhibition   |  |                      | 11,839  |                         |  
|Other                                 |  |                      | (147    | )                       |  
|                                      |  |                      |         |                         |  
|Segment Adjusted EBITDA               |  | $                    | 81,984  |                         | $
|                                      |  |                      |         |                         |  

A
reconciliation of earnings (loss) from continuing operations before income taxes to Segment Adjusted EBITDA is as follows (in thousands):

|                                                               |                                                          | Thirteen Weeks Ended         |         | Thirty-nine Weeks Ended |       
|-------------------------------------------------------------- | -------------------------------------------------------- | ---------------------------- | ------- | ----------------------- | ------
|
|Earnings (loss) from continuing operations before income taxes |                                                          | $                            | (32,293 | )                       | $     
|Plus:                                                          |                                                          |                              |         |                         |       
|                                                               | Interest expense                                         |                              |         | 43,831                  |       
|                                                               | Depreciation and amortization                            |                              |         | 62,324                  |       
|                                                               | Preopening expense                                       |                              |         | 2,705                   |       
|                                                               | Theatre and other closure (income) expense               |                              |         | 1,064                   |       
|                                                               | Disposition of assets and other gains                    |                              |         | 85                      |       
|                                                               | Equity in (earnings) losses of non-consolidated entities |                              |         | (7,507                  | )     
|                                                               | Investment income                                        |                              |         | (2,141                  | )     
|                                                               | Other income(1)                                          |                              |         |                        |       
|                                                               | General and administrative expenseunallocated:          |                              |         |                         |       
|                                                               |                                                          | Merger and acquisition costs |         |                         | 813   
|                                                               |                                                          | Management fee               |         |                         | 1,250 
|                                                               |                                                          | Other(2)                     |         |                         | 11,853
|                                                               |                                                          |                              |         |                         |       
|Segment Adjusted EBITDA                                        |                                                          | $                            | 81,984  |                         | $     
|                                                               |                                                          |                              |         |                         |       

---

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NOTE 14COMMITMENTS AND CONTINGENCIES

The Company, in the normal course of business, is party to various legal actions. Except as described below, management believes that the potential exposure, if
any, from such matters would not have a material adverse effect on the financial condition, cash flows or results of operations of the Company.

United States of America v. AMC Entertainment Inc. and American Multi Cinema, Inc.(No. 99 01034 FMC (SHx), filed in
the U.S. District Court for the Central District of California). On January 29, 1999, the Department of Justice (the "Department") filed suit alleging that AMCE's stadium style theatres violate
the ADA and related regulations. The Department alleged that AMCE had failed to provide persons in wheelchairs seating arrangements with lines of sight comparable to the general public. The Department
alleged various non-line of sight violations as well. The Department sought declaratory and injunctive relief regarding existing and future theatres with stadium style seating,
compensatory damages in the approximate amount of $75,000 and a civil penalty of $110,000.

On
November 20, 2002 the trial court entered summary judgment in favor of the Justice Department on the line of sight aspects of this case and on January 10, 2006, the
trial court ruled in favor of the Department regarding the appropriate remedy. In its decision, the court issued a comprehensive order regarding line of sight and other related remedies. AMCE
estimates that the cost of the betterments related to the remedies for line of sight violations of the ADA will be $21 million, which is expected to be incurred over a
4-5 year term. Through December 27, 2007 AMCE has not incurred any of these costs. Additionally, the order calls for payments of $300,000 to the United States and individual
complainants. AMCE argued its case to the Ninth Circuit Court of Appeals on November 8, 2007 and anticipates a decision soon.

As
a result of the January 10, 2006 order, AMCE estimates the range of the loss to be between $349,000 and $444,000. Accordingly, AMCE has recorded the related liability of
approximately $349,000.

On
January 21, 2003, the trial court entered summary judgment in favor of the Department on non-line of sight aspects of the case, which involve such matters as
parking areas, signage, ramps, location of toilets, counter heights, ramp slopes, companion seating and the location and size of handrails. On December 5, 2003, the trial court entered a
consent order and final judgment on non-line of sight issues under which AMCE agreed to remedy certain violations at its stadium-style theatres and at certain theatres it may open in the
future. Currently AMCE estimates that these betterments will be required at approximately 140 stadium-style theatres. AMC estimates that the total cost of these betterments will be $47,500,000, which
is expected to be incurred over the remaining term of the consent order of fifteen months and is expected to be extended by agreement between the parties prior to the end of the remaining term of the
consent order. Through December 27, 2007 AMCE has incurred approximately $15,476,000 of these costs. The estimate is based on actual costs incurred on remediation work completed to date. The
actual costs of betterments may vary based on the results of surveys of the remaining theatres.

The
Company is a party to various other legal proceedings in the ordinary course of business, none of which is expected to have a material adverse effect on us.

NOTE 15NEW ACCOUNTING PRONOUNCEMENTS

In December 2007, the FASB issued SFAS No. 160,Noncontrolling Interests in Consolidated Financial Statementsan
amendment of ARB No.51(SFAS 160). SFAS 160 establishes accounting and reporting standards that require noncontrolling interests in a subsidiary to be reported as
a component of equity, changes in a parent's ownership interest while the parent retains its controlling interest to be accounted for as equity transactions, and any retained noncontrolling equity
investment upon the deconsolidation of a subsidiary to be initially measured at fair value. The Statement also establishes reporting requirements that clearly identify and distinguish between the
interests of the parent and the interests of the non-controlling owners. SFAS 160 is effective as of the beginning of the first fiscal year beginning on or after December 15,

20

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2008,
and is effective for the Company at the beginning of fiscal 2010. Earlier adoption is prohibited. The Company has not determined the effect that the application of SFAS 160 will have on
its consolidated financial position.

In
December 2007, the FASB issued Statement No. 141 (revised 2007),Business Combinations(SFAS 141R). SFAS 141R
establishes the principles and requirements for how an acquirer: 1) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree; 2) in a business combination achieved in stages, sometimes referred to as a step acquisition, recognize the identifiable assets and liabilities, as well
as the noncontrolling interest in the acquiree, at the full amounts of their fair values; 3) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain
purchase. SFAS 141R establishes disclosure requirements to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This Statement is
to be applied prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period on or after December 15, 2008, and is
effective for the Company at the beginning of fiscal 2010. Earlier adoption is prohibited. The Company is in the process of evaluating the impact SFAS 141R will have on its financial
statements.

In
December 2007, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 110 (SAB 110). SAB 110 extends the opportunity to use the "simplified"
method beyond December 31, 2007, as was allowed by Staff Accounting Bulletin No. 107 (SAB 107). Under SAB 110 and 107, a company is able to use the "simplified" method in
developing an estimate of expected term based on the date of exercise of "plain vanilla" share options. SAB 110 allows companies which do not have sufficient historical experience to provide a
reasonable estimate to continue use of the "simplified" method for estimating the expected term of "plain vanilla" share option grants after December 31, 2007. We will continue
to use the "simplified" method until there is sufficient historical experience to provide a reasonable estimate of expected term in accordance with SAB 110. SAB 110 is effective for the
Company on January 1, 2008.

In
February 2007, the FASB issued SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities, including an
amendment of FASB Statement No. 115 (SFAS 159). SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not
currently required to be measured at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. SFAS 159 does not affect any
existing accounting literature that requires certain assets and liabilities to be carried at fair value. The Company will be required to adopt this standard in the first quarter of fiscal 2009.
Management is currently evaluating the requirements of SFAS 159 and has not yet determined the impact on the consolidated financial statements.

In
September 2006, the FASB released SFAS No. 157,Fair Value Measurementswhich provides enhanced guidance for using fair value to
measure assets and liabilities. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. It does not expand the use of fair value to any
new circumstances. Under the standard, fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in
the market in which the reporting entity transacts business. It clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or
liability. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, or the first
quarter of fiscal 2009 for the Company. Early adoption is permitted. The Company does not anticipate this standard having a material effect on its consolidated financial statements.

In
July 2006, the FASB released FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxesan Interpretation of FASB Statement
109("FIN 48" or the "Interpretation"), which clarifies the accounting for uncertainty in income taxes recognized in companies' financial statements in accordance with
FASB Statement No. 109, "Accounting for Income Taxes." FIN 48 prescribes a recognition threshold

21

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and
measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The evaluation of a tax position in accordance with
FIN 48 is a two-step process. The first step is recognition whereby companies must determine whether it is more likely than not that a tax position will be sustained upon
examination. The second step is measurement whereby a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of
benefit to recognize in the financial statements. The interpretation also provides guidance on derecognition of recognized tax benefits, classification, interest and penalties, accounting in interim
periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company adopted the new requirements in the first quarter of fiscal 2008.
As a result of the adoption of FIN 48, the Company recorded a $5,373,000 increase in current deferred tax assets, a $5,373,000 reduction of goodwill, a $5,373,000 current FIN 48
liability and a $5,373,000 charge to the beginning accumulated deficit that is reported as a cumulative effect adjustment for a change in accounting principle to the opening balance sheet position of
stockholder's accumulated deficit at March 30, 2007. See Note 11Income Taxes.

NOTE 16RELATED PARTY TRANSACTIONS

Governance Agreements

In connection with the Mergers, Holdings, the Sponsors and the other pre-existing stockholders of Holdings, as applicable, entered into various
agreements defining the rights of Holdings' stockholders with respect to voting, governance and ownership and transfer of the stock of Holdings, including a Second Amended and Restated Certificate of
Incorporation of Holdings, a Second Amended and Restated Stockholders Agreement, a Voting Agreement among Holdings and the pre-existing stockholders of Holdings, a Voting Agreement among
Holdings and the former stockholders of LCE Holdings and an Amended and Restated Management Stockholders Agreement among Holdings and certain members of management of Holdings who are stockholders of
Holdings. These agreements terminated on June 11, 2007, the date of the holdco merger, and were superseded by substantially identical agreements entered into by the Parent, the Sponsors and our
other stockholders (collectively, the "Governance Agreements").

The
Governance Agreements provide that the Board of Directors for the Parent will consist of up to nine directors, two of whom are designated by JPMP, two of whom are designated by
Apollo, one of whom is the Chief Executive Officer of the Parent, one of whom is designated by Carlyle, one of whom is designated by Bain, one of whom is designated by Spectrum and one of whom is
designated by Bain, Carlyle and Spectrum, voting together, so long as such designee is consented to by each of Bain and Carlyle. Each of the directors respectively designated by JPMP, Apollo, Bain,
Carlyle and Spectrum have three votes on all matters placed before the Board of Directors of the Parent, Holdings and AMCE and the Chief Executive Officer of the Parent and the director designated by
Bain, Carlyle, and Spectrum voting together will have one vote each. The number of directors respectively designated by the Sponsors will be reduced upon a decrease in such Sponsors' ownership in the
Parent below certain thresholds.

The
Voting Agreement among the Parent and the pre-existing stockholders of the Parent provides that, until the fifth anniversary of the Mergers (the "Blockout Period"), the
former continuing stockholders of the Parent (other than Apollo and JPMP) will generally vote their voting shares of capital stock of the Parent in favor of any matter in proportion to the shares of
capital stock of Apollo and JPMP voted in favor of such matter, except in certain specified instances. The Voting Agreement among the Parent and the former stockholders of LCE further provides that
during the Blockout Period, the former LCE stockholders will generally vote their voting shares of capital stock of the Parent on any matter as directed by any two of Bain, Carlyle and Spectrum,
except in certain specified instances. In addition, certain actions of the Parent, including, but not limited to, change in control transactions, acquisition or disposition transactions with a value
in excess of $10,000,000, the settlement of claims or litigation in excess of $2,500,000, an initial public offering of the Parent, hiring or firing a chief executive officer, chief financial officer
or chief operating officer, incurring or refinancing indebtedness in excess of $5,000,000 or engaging

22

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in
new lines of business, require the approval of either (i) any three of JPMP, Apollo, Carlyle or Bain or (ii) Spectrum and (a) either JPMP or Apollo and (b) either Bain
or Carlyle (the "Requisite Stockholder Majority") if at such time the Sponsors collectively held at least a majority of the Parent's voting shares.

Prior
to the earlier of the end of the Blockout Period and the completion of an initial public offering of the capital stock of the Parent or AMCE, the Governance Agreements prohibit the
Sponsors and the other pre-existing stockholders of the Parent from transferring any of their interests in the Parent, other than (i) certain permitted transfers to affiliates or to
persons approved of by the Sponsors and (ii) transfers after the Blockout Period but prior to an initial public offering subject to the rights described below.

The
Governance Agreements set forth additional transfer provisions for the Sponsors and the other pre-existing stockholders of the Parent with respect to the interests in the
Parent, including the following:

Right of first offer.After the Blockout Date and prior to an initial public offering, the Parent and, in the event the
Parent does not exercise its right of first offer, each of the Sponsors and the other preexisting stockholders of the Parent, have a right of first offer to purchase (on a pro rata basis in the case
of the stockholders) all or any portion of the shares of the Parent that a Sponsor or other former continuing stockholder of the Parent is proposing to sell to a third party at the price and on the
terms and conditions offered by such third party.

Drag-along rights.If, prior to an initial public offering, Sponsors constituting a Requisite Stockholder
Majority propose to transfer shares of the Parent to an independent third party in a bona fide arm's-length transaction or series of transactions that results in a sale of all or substantially all of
the Parent, such Sponsors may elect to require each of the other stockholders of the Parent to transfer to such third party all of its shares at the purchase price and upon the other terms and subject
to the conditions of the sale.

Tag-along rights.Subject to the right of first offer described above, if any Sponsor or other former continuing
stockholder of the Parent proposes to transfer shares of the Parent held by it, then such stockholder must give notice to each other stockholder, who will have the right to participate on a pro rata
basis in the proposed transfer on the terms and conditions offered by the proposed purchaser.

Participant rights.On or prior to an initial public offering, the Sponsors and the other pre-existing
stockholders of the Parent have the pro rata right to subscribe to any issuance by the Parent or any subsidiary of shares of its capital stock or any securities exercisable, convertible or
exchangeable for shares of its capital stock, subject to certain exceptions.

The
Governance Agreements also provide for certain registration rights in the event of an initial public offering of the Parent, including the following:

Demand rights.Subject to the consent of at least two of any of JPMP, Apollo, Carlyle and Bain during the first two years
following an initial public offering, each Sponsor has the right at any time following an initial public offering to make a written request to the Parent for registration under the Securities Act of
part or all of the registrable equity interests held by such stockholders at the Parent's expense, subject to certain limitations. Subject to the same consent requirement, the other
pre-existing stockholders of the Parent as a group have the right at any time following an initial public offering to make one written request to the Parent for registration under the
Securities Act of part or all of the registrable equity interests held by such stockholders with an aggregate offering price to the public of at least $200,000,000.

Piggyback rights.If the Parent at any time proposes to register under the Securities Act any equity interests on a form and
in a manner which would permit registration of the registrable equity interests held by stockholders of the Parent for sale to the public under the Securities Act, the Parent must give
written notice of the proposed registration to each stockholder, who will have the right to request that any part of its registrable equity interests be included in such registration, subject to
certain limitations.

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Holdback agreements.Each stockholder has agreed that it will not offer for public sale any equity interests during a period
not to exceed 90 days (180 days in the case of an initial public offering) after the effective date of any registration statement filed by the Parent in connection with an underwritten
public offering (except as part of such underwritten registration or as otherwise permitted by such underwriters), subject to certain limitations.

Amended and Restated Fee Agreement

In connection with the Mergers, Holdings, AMCE and the Sponsors entered into an Amended and Restated Fee Agreement, which provided for an annual management fee of
$5,000,000, payable quarterly and in advance to each Sponsor, on a pro rata basis, for the twelve year duration of the agreement, as well as reimbursements for each Sponsor's respective
out-of-pocket expenses in connection with the management services provided under the agreement. In addition, the fee agreement provided for reimbursements by AMCE to the
Sponsors for their out-of-pocket expenses and to Holdings of up to $3,500,000 for fees payable by Holdings in any single fiscal year in order to maintain AMCE's and its
corporate existence, corporate overhead expenses and salaries or other compensation of certain employees. The Amended and Restated Fee Agreement terminated on June 11, 2007, the date of the
holdco merger, and was superseded by a substantially identical agreement entered into by AMC Entertainment Holdings, Inc., Holdings, AMCE, the Sponsors and other stockholders.

Upon
the consummation of a change in control transaction or an initial public offering, each of the Sponsors will receive, in lieu of quarterly payments of the annual management fee, a
fee equal to the net present value of the aggregate annual management fee that would have been payable to the Sponsors during the remainder of the term of the fee agreement (assuming a twelve year
term from the date of the original fee agreement), calculated using the treasury rate having a final maturity date that is closest to the twelfth anniversary of the date of the original fee agreement
date.

The
fee agreement also provides that AMCE will indemnify the Sponsors against all losses, claims, damages and liabilities arising in connection with the management services provided by
the Sponsors under the fee agreement.

Holdings
is owned indirectly by the Sponsors, other co-investors and by certain members of management through their interests in the Parent as follows: JPMP (20.784%); Apollo
(20.784%); Bain Capital Partners (15.090%); The Carlyle Group (15.090%); Spectrum Equity Investors (9.764%); Weston Presidio Capital IV, L.P. and WPC Entrepreneur Fund II, L.P. (3.899%);
Co-Investment Partners, L.P. (3.899%); Caisse de Depot et Placement du Quebec (3.120%); AlpInvest Partners CS Investments 2003 C.V., AlpInvest Partners Later Stage
Co-Investments Custodian II B.V. and AlpInvest Partners Later Stage Co-Investments Custodian IIA B.V. (2.730%); SSB Capital Partners (Master Fund) I, L.P.
(1.950%); CSFB Strategic Partners Holdings II, L.P., CSFB Strategic Partners Parallel Holdings II, L.P., CSFB Credit Opportunities Fund (Employee), L.P. and CSFB Credit
Opportunities Fund (Helios), L.P. (1.560%); Credit Suisse Anlagestiftung, Pearl Holding Limited, Vega Invest (Guernsey) Limited and Partners Group Private Equity Performance Holding Limited
(0.780%); Screen Investors 2004, LLC (0.152%); and members of management (0.400%).

Control Arrangement

The Sponsors have the ability to control the Company's affairs and policies and the election of directors and appointment of management.

Continuing Service Agreement

In connection with the termination of an employment agreement with Loews, the Company paid Mr. Travis Reid severance of $87,500 per month for
18 months following the closing of the Mergers, paid him a lump sum payment of $1,575,000, and provided outplacement assistance and automobile benefits

24

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through
December 31, 2006. In addition, in order to facilitate integration following the Mergers, the Company entered into an agreement with Mr. Reid, whereby Mr. Reid provided
certain transitional consulting services to the Company and reported to Mr. Peter C. Brown, the Company's Chief Executive Officer. Pursuant to the continuing service agreement, the Company paid
Mr. Reid a consulting fee for each month of service at the following rate: $50,000 for each of the first four months, $33,333 for each of the next four months and $16,667 for the final five
months. The continuing services agreement terminated in February 2007 and the final severance payment to Mr. Reid was made during the thirteen weeks ended September 27, 2007.

Option Grant to Travis Reid

Pursuant to his Continuing Service Agreement, effective as of January 26, 2006, Holdings has granted Mr. Reid an option under the Holdings 2004
Stock Option Plan to acquire Class N Common Stock at an exercise price not less than the fair market value (as determined by the Board of Directors of Holdings) on the date of grant. The option
is subject to other terms and conditions substantially similar to the terms of Holdings options currently held by employees and is also subject to the Management Stockholders Agreement. The option
vests in three installments on December 23, 2006, 2007 and 2008, and vests in full upon a change of control of Holdings or AMCE.

Cinemex

Cinemex from time to time purchases services or enters into arrangements with parties related to its employees. For example, Miguel Angel Dávila,
Chief Executive Officer and President of Cinemex and on the board of Cinemex, and Adolfo Fastlicht Kurián, a Director of Cinemex, are minority investors in the construction of the new
shopping center where one of Cinemex's new theatres opened in December 2004. Mr. Kurián's father is the general manager of three construction companies that provide theatre
construction services to Cinemex and Mr. Kurián is an investor in these companies. In addition, Cinemex signed a waiver to allow a McDonald's restaurant owned by
Mr. Kurián's wife to open in a shopping center where, under the lease, the landlord was prohibited from leasing space to a business that would compete with the theatre's
concessions. A relative of Mr. Dávila is the manager of Consultores en Información Electrónica, S.A. de C.V., the company which renders web
hosting, electronic marketing, e-mail and software services to one of Cinemex's subsidiaries. This arrangement may be terminated by Cinemex upon 30-days notice.

Market Making Transactions

On August 18, 2004, Holdings sold $304,000,000 in aggregate principal amount at maturity of its Senior Discount Notes due 2014. On the same date, Marquee
sold $250,000,000 in aggregate principal amount of its 85/8% Senior Notes due 2012 and $205,000,000 in aggregate principal amount of its Senior Floating Notes due 2010 (collectively,
the "Senior Notes"). J.P. Morgan Securities Inc., an affiliate of JPMP which owned approximately 20.8% of Holdings, was an initial purchaser of both the Holdco Notes and the Senior Notes.

On
January 26, 2006 AMCE sold $325,000,000 in aggregate principal amount of its 11% Senior Subordinated Notes due 2016. JP Morgan Securities Inc., an affiliate of JPMP
which owned approximately 20.8% of Holdings, was an initial purchaser of these notes. Credit Suisse Securities (USA) LLC, whose affiliates owned approximately 1.6% of Holdings, was also an
initial purchaser of these notes.

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Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

Forward Looking Statements

In addition to historical information, this Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The words "forecast," "estimate,"
"project," "intend," "expect," "should," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors, including those discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations of Marquee Holdings Inc.,"
which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to, the following:



This
list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative but not exhaustive. In addition, new risks and uncertainties may
arise from time to time. Accordingly, all forward-looking statements should be evaluated with an understanding of their inherent uncertainty.

Readers
are urged to consider these factors carefully in evaluating the forward-looking statements. For further information about these and other risks and uncertainties, see
Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 29, 2007 and in this Quarterly Report on Form 10-Q.

All
subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements.
The forward-looking statements included herein are made only as of the date of this Quarterly Report on Form 10-Q, and we do not undertake any obligation to release publicly any
revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

26

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Overview

We are one of the world's leading theatrical exhibition companies. During the thirty-nine weeks ended December 27, 2007, we opened eight new
theatres with 112 screens in the U.S., closed 11 theatres with 128 screens in the U.S., and sold 17 theatres with 160 screens in connection with our disposition of Hoyts General Cinemas South America
("HGCSA") in Argentina, Brazil, Chile and Uruguay. As of December 27, 2007, we owned, operated or had interests in 359 theatres and 5,138 screens with 89%, or 4,595, of our screens in the U.S.
and Canada, and 11%, or 543, of our screens in Mexico, China (Hong Kong), France and the United Kingdom.

Our
principal direct and indirect owned subsidiaries are AMC Entertainment Inc., American Multi-Cinema, Inc. ("AMC"), Grupo Cinemex, S.A. de C.V. ("Cinemex") and AMC
Entertainment International, Inc. ("AMCEI"). We conduct our U.S. and Canada theatrical exhibition business through AMC and its subsidiaries and AMCEI and its subsidiaries. We are operating
theatres outside the United States primarily through Cinemex and AMCEI and its subsidiaries.

On
March 29, 2005, AMC Entertainment, along with Regal Entertainment Group ("Regal"), combined our respective cinema screen advertising businesses into a new joint venture company
called National CineMedia, LLC ("NCM"). The new company engages in the marketing and sale of cinema advertising and promotions products; business communications and training services; and the
distribution of digital alternative content. We record our share of on-screen advertising revenues generated by NCM in other theatre revenues. We contributed fixed assets and exhibitor
agreements of our cinema screen advertising subsidiary National Cinema Network, Inc. ("NCN") to NCM. We also included goodwill (recorded in connection with the merger with Marquee) in the cost
assigned to our investment in NCM. Additionally, we paid termination benefits related to the displacement of certain NCN associates. In consideration of the NCN contributions described above, NCM
issued a 37% interest in its Class A units to NCN. Since that date, our interest in NCM has declined to 18.6% due to the entry of new investors. On February 13, 2007, NCM, Inc., a
newly-formed entity that serves as the sole manager of NCM, announced the pricing of its initial public offering of 42,000,000 shares of common stock at a price of $21.00 per share. Subsequent to the
NCM, Inc. IPO, we hold a 18.6% interest in NCM. AMCE received net proceeds upon completion of the NCM initial public offering of $517.1 million. We used the net proceeds from the NCM
initial public offering, along with cash on hand, to redeem certain of our notes; on March 19, 2007 we redeemed $212,811,000 aggregate principal amount of our 91/2% senior
subordinated notes due 2011 at 100% of principal value; on March 23, 2007 we redeemed $205,000,000 aggregate principal amount of our senior floating rate notes due 2010 at 103% of principal
value; and on March 23, 2007, we redeemed $175,000,000 aggregate principal amount of our 97/8% senior subordinated notes due 2012 at 104.938% of principal value. Our loss on
redemption of these notes including call premiums and the write off of unamortized deferred charges and premiums was $3,488,000.

In
connection with the completion of NCM, Inc.'s IPO, we also entered into an Exhibitor Services Agreement ("ESA") with NCM whereby in exchange for $231,308,000, we agreed to
modify NCM's payment obligations under the prior Exhibitor Services Agreement. We have recorded the payment received for modification of the ESA as deferred revenues in our consolidated financial
statements. The ESA provides a term of 30 years for advertising and approximately five year terms (with automatic renewal provisions) for meeting event and digital programming services, and
provides NCM with a five year right of first refusal for the services beginning one year prior to the end of the term. The ESA also changed the basis upon which we are paid by NCM from a percentage of
revenues associated with advertising contracts entered into by NCM to a monthly theatre access fee. The theatre access fee is now composed of a fixed payment per patron and a fixed payment per digital
screen, which increases by 8% every five years starting at the end of fiscal 2011 for payments per patron and by 5% annually starting at the end of fiscal 2007 for payments per digital screen. The
theatre access fee paid in the aggregate to us, Regal and Cinemark will not be less than 12% of NCM's aggregate advertising revenue, or it will be adjusted upward to meet this minimum payment.

27

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In
May 2006, AMCEI and its subsidiary AMC Entertainment International Limited sold their interests in AMC Entertainment España S.A., which owned and operated 4
theatres with 86 screens in Spain, and Actividades Multi-Cinemas E Espectáculos, LDA, which owned and operated 1 theatre with 20 screens in Portugal. These operations have been
classified as discontinued operations as a result of our disposition of Yelmo Cineplex, S.L., or Yelmo, in December 2006 as we no longer have continuing involvement in the region.

In
December 2006 we disposed of our equity method investment in Yelmo, which owned and operated 27 theaters with 310 screens in Spain on the date of sale, for sales proceeds of
approximately $52,137,000.

During
the thirty-nine weeks ended December 28, 2006, we sold six theatres with 68 screens, exchanged two theatres with 32 screens and closed one theatre with eight
screens in the U.S. as required by and in connection with the approval of the Mergers for an aggregate sales price of $64,302,000.

On
November 7, 2006, our Board of Directors approved an amendment to freeze our Defined Benefit Retirement Income Plan, Supplemental Executive Retirement Plan and Retirement
Enhancement Plan (the "Plans") as of December 31, 2006. On December 20, 2006 we amended and restated the Plans to implement the freeze as of December 31, 2006. As a result of the
freeze there will be no further benefits accrued after December 31, 2006, but there will be continued vesting for associates with less than five years of vesting service. We will continue to
fund existing benefit obligations and there will be no new participants in the future. As a result of amending and restating the Plans to implement the freeze, we recognized a curtailment gain of
$10,983,000 in our consolidated financial statements which reduced our pension expense for fiscal 2007.

In
May 2007 we disposed of our investment in Fandango for total expected proceeds of approximately $20,000,000, of which $17,977,000 was received in May and September 2007, and have
recorded a gain on the sale, included in investment income, of $15,977,000.

In
July 2007 we disposed of our investment in HGCSA, an entity that operated 17 theatres in South America, for sales proceeds of $28,682,000 and have recorded a gain on the sale included
in equity in earnings of non-consolidated entities of $18,743,000.

For
financial reporting purposes we have three segments, (1) U.S. and Canada theatrical exhibition, (2) International theatrical exhibition and (3) Other, with the
most significant activity in "Other" related to on-screen advertising.

Our
U.S. and Canada and International theatrical exhibition revenues are generated primarily from box office admissions and theatre concession sales. The balance of our revenues are
generated from ancillary sources, including on-screen advertising, rental of theatre auditoriums, fees and other revenues generated from the sale of gift certificates and theatre tickets
and arcade games located in theatre lobbies.

Box
office admissions are our largest source of revenue. We predominantly license "first-run" motion pictures from distributors owned by major film production companies and
from independent distributors. We license films on a film-by-film and theatre-by-theatre basis. Film exhibition costs are accrued based on the
applicable admissions revenues and estimates of the final settlement pursuant to our film licenses. Licenses that we enter into typically state that rental fees are based on either aggregate terms
established prior to the opening of the picture or on a mutually agreed settlement upon the conclusion of the picture run. Under an aggregate terms formula, we pay the distributor a specified
percentage of box office receipts. The settlement process allows for negotiation based upon how a film actually performs.

Concessions
sales are our second largest source of revenue after box office admissions. Concessions items include popcorn, soft drinks, candy, hot dogs and other products. We negotiate
prices for our concessions products and supplies directly with concessions vendors on a national or regional basis to obtain high volume discounts or bulk rates and marketing incentives.

28

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Our
revenues are dependent upon the timing and popularity of motion picture releases by distributors. The most marketable motion pictures are usually released during the summer and the
year-end holiday seasons. Therefore, our business can be seasonal, with higher attendance and revenues generally occurring during the summer months and holiday seasons. Our results of
operations may vary significantly from quarter to quarter.

See
Note 1Basis of Presentation for discussion of the change in estimate for other revenues recorded during the thirteen and thirty-nine weeks ended
December 27, 2007.

During
fiscal 2007, films licensed from our eleven largest distributors based on revenues accounted for approximately 95% of our U.S. and Canada admissions revenues. Our revenues
attributable to individual distributors may vary significantly from year to year depending upon the commercial success of each distributor's motion pictures in any given year.

During
the period from 1990 to 2006, the annual number of first-run motion pictures released by distributors in the United States ranged from a low of 370 in 1995 to a high
of 599 in 2006, according to Motion Picture Association 2006 MPA Market Statistics.

We
continually upgrade the quality of our theatre circuit by adding new screens through new builds (including expansions) and acquisitions and by disposing of older screens through
closures and sales.
We are an industry leader in the development and operation of megaplex theatres, typically defined as a theatre having 14 or more screens and offering amenities to enhance the movie-going experience,
such as stadium seating providing unobstructed viewing, digital sound and enhanced seat design. We believe our introduction of the megaplex concept to North America in 1995 has led to the current
industry replacement cycle, which has accelerated the obsolescence of older, smaller theatres by setting new standards for moviegoers. From 1995 through December 27, 2007, AMC Entertainment and
Loews added 207 theatres with 3,709 new screens, acquired 431 theatres with 3,007 screens and disposed of 690 theatres with 4,227 screens. As of December 27, 2007, approximately 74% of our
screens in the U.S. and Canada were located in megaplex theatres.

Stock-Based Compensation

We account for stock-based employee compensation arrangements in accordance with the provisions of SFAS No. 123(R), "Shared-Based Payment (Revised)" and
Staff Accounting Bulletin No. 107 and No. 110 "Share Based Payments". Under SFAS 123(R), compensation cost is calculated on the date of the grant and then amortized over the
vesting period. The fair value of each stock option was estimated on the grant date using the Black-Scholes option pricing model using the following assumptions: common stock value on the grant date,
risk-free interest rate, expected term, expected volatility, and dividend yield. Option awards which require classification as a liability under SFAS 123(R) are revalued at each
subsequent reporting date using the Black-Scholes model.

We
granted 38,876.72873 options on December 23, 2004 and 600 options on January 26, 2006 to employees to acquire our common stock. The fair value of these options on their
respective grant dates was $22,373,000 and $138,000. All of these options are equity classified except for 7,684.57447 unexercised options granted on December 23, 2004 which are classified as a
liability.

The
holder of options which are classified as a liability exercised options on 500 shares during the thirty-nine weeks ended December 27, 2007.

The
common stock value used to estimate the fair value of each option on the December 23, 2004 grant date was based upon a contemporaneous third party arms-length
transaction on December 23, 2004 in which we sold 769,350 shares of our common stock for $1,000 per share to unrelated parties. Accordingly, because we had contemporaneous objective evidence of
the fair value of our common stock on December 23, 2004, we did not obtain a contemporaneous valuation by an unrelated valuation specialist.

29

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For
the 7,684.57447 option awards classified as liabilities, the Company revalued the options at each period end following the grant date using the Black-Scholes model. As discussed in
Note 6 to our financial statements for the period ended December 27, 2007 we reported a liability for these options of $5,479,000. In valuing this liability, Holdings used a fair value
of common stock of $1,200 per share, which was based on a contemporaneous valuation by an unrelated valuation specialist as of December 27, 2007.

On
June 11, 2007, Marquee Merger Sub Inc. ("merger sub"), a wholly-owned subsidiary of AMC Entertainment Holdings, Inc. ("Parent"), merged with and into Holdings,
with Holdings continuing as the surviving corporation (the "holdco merger"). In connection with this, Parent adopted an amended and restated 2004 stock option plan (formerly known as the 2004 Stock
Option Plan of Marquee Holdings Inc.). The option exercise price per share of $1,000 was adjusted to $491 pursuant to the antidilution provisions of the 2004 Stock Option Plan to give effect to
the payment of a one time non-recurring dividend paid by Parent on June 15, 2007 of $652,800,000 to the holders of its 1,282,750 shares of common stock. The Company applied the
guidance in SFAS 123(R) and determined that there was no incremental value transferred as a result of the modification and as a result, no additional compensation cost to recognize.

Our
Chairman of the Board, President and Chief Executive Officer, Peter C. Brown, has an amended and restated employment agreement that generally will revert to his prior agreement if an
initial public offering of Parent does not occur on or before December 31, 2008. In the event of an initial public offering on or before December 31, 2008, within 15 days after
such initial public offering, Mr. Brown shall receive a grant of restricted stock or restricted stock units having a value of $2,567,000 on the date of grant, based on the initial public
offering price. This grant was an inducement for Mr. Brown to enter into his amended and restated employment agreement, whereby the term of his employment would be shorter than in his current
employment agreement and he would be subject to certain restrictive covenants that did not exist in his prior employment agreement. Such grant shall vest in three equal annual installments on the
first three anniversaries of the grant date. We expect that we would incur annual stock-based compensation expense of $856,000 related to these awards for three years from the date of grant in the
event of an initial public offering on or before December 31, 2008.

On
November 14, 2007, we entered into an agreement with Richard T. Walsh (formerly executive vice president, AMC Entertainment Inc., and chairman, AMC film programming),
which extended the exercise period applicable to his outstanding vested stock options from 90 days following his departure on August 17, 2007 until 60 days after an initial public
offering of the common stock of AMC Entertainment Holdings, Inc., or in the event no initial public offering has occurred by June 16, 2008, until January 2, 2009. We have
accounted for the extension of the exercise term for vested options for Mr. Walsh as a modification under SFAS No. 123(R),Share Based
Payment.We measured the compensation cost for the modified award by comparing the fair value of the modified award and the fair value of the original award immediately before
it was modified, and we recognized a charge to expense and an offsetting increase to additional paid-in capital for the incremental fair value of the vested awards, which was determined to
be $32,326 as calculated using the Black-Scholes option pricing model, during the thirteen weeks ended December 27, 2007. Because Mr. Walsh held no unvested awards and no unvested awards
were modified, there is no additional compensation cost to recognize in the future related to his awards.

Income Taxes

We continually monitor the performance of our U.S. and Canada theatres and our projections of future operating results to evaluate the likelihood of our ability
to utilize deferred tax assets for which we have recorded a full valuation allowance. Improvement in our historical core earnings from continuing operations before income taxes in the U.S. as well as
improvement in our expected future core earnings from continuing operations before income taxes in the U.S. could result in the removal of some or all of the valuation allowance recorded for the U.S.
which could result in future reductions to our income tax provision and increases in net earnings.

30

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Operating Results

Set forth in the table below is a summary of revenues, costs and expenses attributable to the Company's U.S. and Canada and International theatrical exhibition
operations and Other businesses. Reference is made to Note 13 to the Notes to Consolidated Financial Statements for additional information about our operations by operating segment.

|                                      |                                            | Thirteen Weeks Ended |         | Thirty-nine Weeks Ended | 
|------------------------------------- | ------------------------------------------ | -------------------- | ------- | ----------------------- | 
|
|
|Revenues                              |                                            |                      |         |                         | 
|U.S. and Canada theatrical exhibition |                                            |                      |         |                         | 
|                                      | Admissions                                 |                      | $       | 357,548                 | 
|                                      | Concessions                                |                      |         | 140,161                 | 
|                                      | Other theatre                              |                      |         | 18,320                  | 
|                                      |                                            |                      |         |                         | 
|                                      |                                            |                      | 516,029 |                         | 
|                                      |                                            |                      |         |                         | 
|International theatrical exhibition   |                                            |                      |         |                         | 
|                                      | Admissions                                 |                      |         | 20,858                  | 
|                                      | Concessions                                |                      |         | 13,415                  | 
|                                      | Other theatre                              |                      |         | 8,678                   | 
|                                      |                                            |                      |         |                         | 
|                                      |                                            |                      | 42,951  |                         | 
|Other                                 |                                            |                      |        |                         | 
|                                      |                                            |                      |         |                         | 
|                                      | Total revenues                             |                      | $       | 558,980                 | 
|                                      |                                            |                      |         |                         | 
|Cost of Operations                    |                                            |                      |         |                         | 
|U.S. and Canada theatrical exhibition |                                            |                      |         |                         | 
|                                      | Film exhibition costs                      |                      | $       | 182,595                 | 
|                                      | Concession costs                           |                      |         | 14,596                  | 
|                                      | Theatre operating expense                  |                      |         | 143,719                 | 
|                                      | Rent                                       |                      |         | 106,921                 | 
|                                      | Preopening expense                         |                      |         | 2,705                   | 
|                                      | Theatre and other closure (income) expense |                      |         | 1,053                   | 
|                                      |                                            |                      |         |                         | 
|                                      |                                            |                      | 451,589 |                         | 
|                                      |                                            |                      |         |                         | 
|International theatrical exhibition   |                                            |                      |         |                         | 
|                                      | Film exhibition costs                      |                      |         | 8,973                   | 
|                                      | Concession costs                           |                      |         | 2,958                   | 
|                                      | Theatre operating expense                  |                      |         | 13,255                  | 
|                                      | Rent                                       |                      |         | 5,926                   | 
|                                      | Preopening expense                         |                      |         |                        | 
|                                      | Theatre and other closure (income) expense |                      |         | 11                      | 
|                                      |                                            |                      |         |                         | 
|                                      |                                            |                      | 31,123  |                         | 
|                                      |                                            |                      |         |                         | 
|Other                                 |                                            |                      | 147     |                         | 
|General and administrative expense:   |                                            |                      |         |                         | 
|                                      | Merger and Acquisition costs               |                      |         | 813                     | 
|                                      | Management Fee                             |                      |         | 1,250                   | 
|                                      | Other                                      |                      |         | 11,853                  | 
|Depreciation and amortization         |                                            |                      | 62,324  |                         | 
|Disposition of assets and other gains |                                            |                      | 85      |                         | 
|                                      |                                            |                      |         |                         | 
|                                      | Total costs and expenses                   |                      | $       | 559,184                 | 
|                                      |                                            |                      |         |                         | 

31

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|
|

|                                |                                                    | Thirteen Weeks Ended |        | Thirty-nine Weeks Ended
|------------------------------- | -------------------------------------------------- | -------------------- | ------ | -----------------------
|
|Operating Data (at period end): |                                                    |                      |        |                        
|                                | Screen additions                                   |                      | 54     |                        
|                                | Screen acquisitions                                |                      |       |                        
|                                | Screen dispositions                                |                      | 44     |                        
|                                | Average screenscontinuing operations(1)           |                      | 5,038  |                        
|                                | Number of screens operated                         |                      |        |                        
|                                | Number of theatres operated                        |                      |        |                        
|                                | Screens per theatre                                |                      |        |                        
|                                | Attendancecontinuing operations(1) (in thousands) |                      | 51,187 |                        

---

Thirteen weeks Ended December 27, 2007 and December 28, 2006

Revenues.Total revenues decreased 6.3%, or $37,376,000, during the thirteen weeks ended December 27, 2007 compared to
the thirteen weeks ended December 28, 2006.

U.S.
and Canada theatrical exhibition revenues decreased 6.9%, or $38,462,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended
December 28, 2006. Admissions revenues decreased 5.6%, or $21,077,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006 due
to a 10.7% decrease in attendance partially offset by a 5.7% increase in average ticket prices. Admissions revenues at comparable theatres (theatres opened on or before the second quarter of fiscal
2007) decreased 7.1%, or $26,375,000, during the thirteen weeks ended December 27, 2007 from the comparable period last year. Based upon available industry sources, box office revenues of our
comparable theatres performed in line with the overall
performance of industry comparable theatres in the markets where we operate. The increase in average ticket price was primarily due to our practice of periodically reviewing ticket prices and the
discounts we offer and making selective adjustments based upon such factors as general inflationary trends and conditions in local markets. Concessions revenues decreased 6.6%, or $9,830,000, during
the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006, due to the decrease in attendance partially offset by a 4.7% increase in average
concessions per patron related primarily to price increases. Other theatre revenues decreased 29.2%, or $7,555,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen
weeks ended December 28, 2006. Included in other theatre revenues is our share of on-screen advertising revenues generated by NCM. The decrease in other theatre revenues was
primarily due to decreases in on-screen advertising revenues as a result of the new Exhibitor Services Agreement with NCM. See Note 1Basis of Presentation for
discussion of the change in estimate for revenues recorded during the thirteen weeks ended December 27, 2007.

International
theatrical exhibition revenues increased 2.6%, or $1,102,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended
December 28, 2006. Admissions revenues decreased by 1.4%, or $290,000, due to a 4.8% decrease in attendance partially offset by a 3.6% increase in average ticket price. Concessions revenues
increased 5.8%, or $731,000, due to an 11.1% increase in concessions per patron partially offset by the decrease in attendance. Concessions per patron increased in Mexico due primarily to price
increases and promotions designed to increase the average transaction size and incidence of purchase. International revenues were positively impacted by a weaker U.S. dollar, although this did not
contribute materially to our consolidated loss from continuing operations.

32

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Costs and expenses.Total costs and expenses increased 0.2%, or $1,319,000, during the thirteen weeks ended
December 27, 2007 compared to the thirteen weeks ended December 28, 2006.

U.S.
and Canada theatrical exhibition costs and expenses decreased 1.1%, or $5,153,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended
December 28, 2006. Film exhibition costs decreased 6.4%, or $12,515,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006
due to the decrease in admissions revenues and to a decrease in the percentage of admissions paid to film distributors. As a percentage of admissions revenues, film exhibition costs were 51.1% in the
current period as compared with 51.5% in the prior period. Concession costs decreased 2.9%, or $441,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended
December 28, 2006 due to the decrease in concessions revenues partially offset by the increase in concession costs as a percentage of concessions revenue. As a percentage of concessions
revenues, concession costs were 10.4% in the current period compared with 10.0% in the prior period. As a percentage of revenues, theatre operating expense was 27.9% in the current period as compared
to 25.1% in the prior period due to a decline in operating leverage we achieve when admissions revenues increase. Preopening expense decreased $226,000 during the thirteen weeks ended
December 27, 2007 due primarily to the decrease in screen additions during the period. Rent expense increased 3.0%, or $3,102,000, during the thirteen weeks ended December 27,
2007 compared to the thirteen weeks ended December 28, 2006 due primarily to the opening of new theatres. During the thirteen weeks ended December 27, 2007, we recognized $1,053,000 of
theatre and other closure expense due primarily to a lease termination negotiated for one of our theatres where the lease was terminated during the thirteen weeks ended December 27, 2007.
During the thirteen weeks ended December 28, 2006, we recognized $595,000 of theatre and other closure expense due primarily to accretion of the closure liability related to theatres closed
during prior periods.

International
theatrical exhibition costs and expenses decreased 0.6%, or $99,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended
December 28, 2006. Film exhibition costs increased 0.6%, or $52,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006 due
to an increase in the percentage of admissions paid to film distributors partially offset by the decrease in admissions revenues. Concession costs decreased 2.8%, or $84,000, from the prior year. As a
percentage of concessions revenues, concession costs were 22.0% in the current period compared with 24.0% in the prior period. The decrease in our concession costs as a percentage of concession
revenues was due primarily to sales of higher margin products during the current period compared to the prior period and better inventory control programs to reduce inventory shrinkage. As a
percentage of revenues, theatre operating expense was 30.9% in the current period compared to 28.8% in the prior period. Preopening expense decreased $767,000 during the thirteen weeks ended
December 27, 2007 due to the decrease in screen additions during the period. We did not open any theatres in Mexico during fiscal 2008 and opened two theatres with 21 screens during fiscal
2007. Rent expense decreased 9.2%, or $599,000, during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006 primarily due to favorable
modifications to certain lease agreements in Mexico. International costs and expenses were negatively impacted by a weaker U.S. dollar, although this did not contribute materially to our consolidated
loss from continuing operations. We continually monitor the performance of our international theatres, and factors such as changing consumer preferences for filmed entertainment in international
markets and our inability to sublease vacant retail space could negatively impact operating results and result in future closures, sales, dispositions and theatre closure charges prior to expiration
of underlying lease agreements.



Merger, acquisition and transaction costs.Merger, acquisition and transaction costs decreased $2,724,000 from $3,537,000 to
$813,000 during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006. Current period costs are primarily comprised of preacquisition expenses
for payments for a unionsponsored pension plan related to the Merger with Loews.

33

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Management fees.Management fees were unchanged during the thirteen weeks ended December 27, 2007. Management fees of
$1,250,000 are paid quarterly, in advance, to our Sponsors in exchange for consulting and other services.

Other.Other general and administrative expense increased $5,898,000, during the thirteen weeks ended December 27,
2007 compared to the thirteen weeks ended December 28, 2006. The increase in other general and administrative expenses is primarily due to a decrease in pension income of $9,917,000 related to
an amendment to freeze our Plans as of December 31, 2006 which resulted in a curtailment gain of $10,983,000 during the thirteen weeks ended December 28, 2006 offset by a decrease in
incentive compensation of $738,000 related to declines in expected annual operating performance as a percentage of the annual target underlying our annual incentive plan. Additionally, stock
compensation expense decreased $4,225,000 during the thirteen weeks ended December 27, 2007 compared to the thirteen weeks ended December 28, 2006 due primarily to the accelerated
vesting of certain options as a result of entry into a separation and general release agreement with the holder of these options during the thirteen weeks ended March 29, 2007. As a result of
the accelerated vesting during the prior year, there is no expense related to these options during the thirteen weeks ended December 27, 2007.

Depreciation and Amortization.Depreciation and amortization decreased 2.9%, or $1,833,000, compared to the prior period.

Disposition of Assets and Other Gains.Disposition of assets and other (gains) losses were $85,000 in the current period
compared to ($5,334,000) in the prior period. The prior period includes $5,250,000 of settlements received related to fireproofing litigation recoveries at various theatres.

Other Income.Other income includes $2,094,000 and $1,967,000 of income related to the derecognition of stored value card
liabilities, as to which we believe future redemption to be remote, during the thirteen weeks ended December 27, 2007 and December 28, 2006, respectively.

Interest Expense.Interest expense decreased 26.0%, or $15,368,000, primarily due to decreased borrowings.

AMC
received net proceeds upon completion of the NCM initial public offering and debt financing of $517,122,000. We used the net proceeds from the NCM initial public offering and debt
financing, along with cash on hand, to redeem our 91/2% senior subordinated notes due 2011 (the "Notes due 2011"), our senior floating rate notes due 2010 (the "Floating Notes due
2010") and our 97/8% senior subordinated notes due 2012 (the "Notes due 2012"). On March 19, 2007 we redeemed $212,811,000 aggregate principal amount of our Notes due 2011 at
100% of principal value; on March 23, 2007, we redeemed $205,000,000 aggregate principal amount of our Floating Notes due 2010 at 103% of principal value; and on March 23, 2007 we
redeemed $175,000,000 aggregate principal amount of our Notes due 2012 at 104.938% of principal value.

Equity in (Earnings) Losses of Non-Consolidated Entities.Equity in earnings of non-consolidated
entities were ($7,507,000) in the current period compared to losses of $1,226,000 in the prior period. Equity in (earnings) losses related to our investment in National CineMedia, LLC were
($7,637,000) and $444,000 for the thirteen weeks ended December 27, 2007 and December 28, 2006, respectively. The thirteen weeks ended December 28, 2006 includes equity losses of
$2,031,000 related to HGCSA.

Investment Income.Investment income was $2,141,000 for the thirteen weeks ended December 27, 2007 compared to
$4,221,000 for the thirteen weeks ended December 28, 2006. Interest income decreased $1,835,000 from the prior period due primarily to lower overall cash and equivalents available for
investment.

Income Tax Benefit.The benefit for income taxes from continuing operations was $22,800,000 for the thirteen weeks ended
December 27, 2007 and $1,500,000 for the thirteen weeks ended December 28, 2006

34

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due
to the increase in loss from continuing operations before income taxes and other discrete period items. See Note 11Income Taxes.

Loss from Discontinued Operations, Net.On May 11, 2006, we sold our operations in Iberia, including 4 theatres with
86 screens in Spain and 1 theatre with 20 screens in Portugal. At the date of the sale these operations did not meet the criteria for discontinued operations because of continuing involvement in the
region through an equity method investment in Yelmo. In December 2006, we disposed of our investment in Yelmo, including 27 theatres with 310 screens in Spain, and the results of the operations in
Iberia have now been classified as discontinued operations. See Note 3Discontinued Operations for the components of the earnings from discontinued operations.

Net Loss.Net losses were $9,493,000 and $14,287,000 for the thirteen weeks ended December 27, 2007 and
December 28, 2006, respectively.

Thirty-nine weeks Ended December 27, 2007 and December 28, 2006

Revenues.Total revenues increased 0.5%, or $9,135,000, during the thirty-nine weeks ended December 27,
2007 compared to the thirty-nine weeks ended December 28, 2006.

U.S.
and Canada theatrical exhibition revenues decreased 0.1%, or $1,131,000, during the thirty-nine weeks ended December 27, 2007 compared to the
thirty-nine weeks ended December 28, 2006. Admissions revenues increased 1.0%, or $12,041,000, during the thirty-nine weeks ended December 27, 2007 compared to
the thirty-nine weeks ended December 28, 2006, due to a 5.1% increase in average ticket prices, partially offset by a 3.9% decrease in attendance. Admissions revenues at comparable
theatres (theatres opened on or before the first quarter of fiscal 2007,) during the thirty-nine weeks ended December 27, 2007, were essentially unchanged from the comparable period
last year. [Based upon available industry sources, box office revenues of our comparable theatres performed in line with the overall performance of industry comparable theatres in the
markets where we operate.] The increase in average ticket price was primarily due to our practice of periodically reviewing ticket prices and the discounts we offer and making selective
adjustments based upon such factors as general inflationary trends and conditions in local markets. Concessions revenues increased 1.8%, or $8,485,000, during the thirty-nine weeks ended
December 27, 2007 compared to the thirty-nine weeks ended December 28, 2006 due to a 5.9% increase in average concessions per patron due primarily to price increases,
partially offset by the decrease in attendance. Other theatre revenues decreased 28.6%, or $21,657,000, during the thirty-nine weeks ended December 27, 2007 compared to the
thirty-nine weeks ended December 28, 2006. Included in other theatre revenues is our share of on-screen advertising revenues generated by NCM. The decrease in other
theatre revenues was primarily due to decreases in on-screen advertising revenues as a result of the new Exhibitor Services Agreement with NCM. See Note 1Basis of
Presentation for discussion of the change in estimate for revenues recorded during the thirty-nine weeks ended December 27, 2007.

International
theatrical exhibition revenues increased 7.6%, or $10,318,000, during the thirty-nine weeks ended December 27, 2007 compared to the
thirty-nine weeks ended December 28, 2006. Admissions revenues increased by 5.0%, or $3,626,000, due to a 5.3% increase in average ticket price partially offset by a 0.3% decrease
in attendance. Concessions revenues increased 11.3%, or $5,057,000, due to an 11.6% increase in concessions per patron partially offset by the decrease in attendance. Concessions per patron increased
in Mexico due primarily to price increases and promotions designed to increase transaction size and incidence of purchase. International revenues were positively impacted by a weaker U.S. dollar,
although this did not contribute materially to our consolidated earnings from continuing operations.

Costs and expenses.Total costs and expenses increased 0.8%, or $13,459,000, during the thirty-nine weeks ended
December 27, 2007 compared to the thirty-nine weeks ended December 28, 2006.

U.S.
and Canada theatrical exhibition costs and expenses increased 0.5%, or $6,837,000, during the thirty-nine weeks ended December 27, 2007 compared to the
thirty-nine weeks ended December 28, 2006.

35

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Film
exhibition costs increased 1.9%, or $11,915,000, during the thirty-nine weeks ended December 27, 2007 compared to the thirty-nine weeks ended December 28,
2006 due to the increase in admissions revenues and to an increase in the percentage of admissions paid to film distributors. As a percentage of admissions revenues, film exhibition costs were 52.8%
in the current period as compared with 52.3% in the prior period. Concession costs increased 2.8%, or $1,420,000, during the thirty-nine weeks ended December 27, 2007 compared to
the thirty-nine weeks ended December 28, 2006 due to the increase in concessions revenues and an increase in concession costs as a percentage of concession revenues. As a percentage
of concessions revenues, concession costs were 10.6% in the current period compared with 10.5% in the prior period. As a percentage of revenues, theatre operating expense was 25.6% in the current
period as compared to 25.0% in the prior period. Preopening expense decreased $75,000 during the thirty-nine weeks ended December 27, 2007. Rent expense increased 1.8%, or
$5,714,000, during the thirty-nine weeks ended December 27, 2007 compared to the thirty-nine weeks ended December 28, 2006. During the thirty-nine
weeks ended December 27, 2007, we recognized $15,413,000 of theatre and other closure income due primarily to lease terminations negotiated on favorable terms for four of our theatres that were
closed during the thirty-nine weeks ended December 27, 2007 or where the lease was terminated during this period. During the thirty-nine weeks ended December 28,
2006, we recognized $8,285,000 of theatre and other closure expense related primarily to the closure of 23 theatres with 227 screens and to accretion of the closure liability related to theatres
closed during prior periods.

International
theatrical exhibition costs and expenses increased 4.6%, or $4,587,000, during the thirty-nine weeks ended December 27, 2007 compared to the
thirty-nine weeks ended December 28, 2006. Film exhibition costs increased 6.7%, or $2,076,000, during the thirty-nine weeks ended December 27, 2007 compared to
the thirty-nine weeks ended December 28, 2006 due to the increase in admissions revenues and an increase in the percentage of admissions paid to film distributors. Concession costs
increased $436,000 during the thirty-nine weeks ended December 27, 2007 compared to the thirty-nine weeks ended December 28, 2006 due to the increase in
concession revenues partially offset by a decrease in concession costs as a percentage of concession revenues. As a percentage of concessions revenues, concession costs were 22.5% in the current
period compared with 24.1% in the prior period. The decrease in our concession costs as a percentage of concessions revenues was due primarily to sales of higher margin products during the current
period compared to the prior period and inventory control programs. As a percentage of revenues, theatre operating expense was 25.9% in the current period and in the prior period. Preopening expense
decreased $1,706,000 during the thirty-nine weeks ended December 27, 2007 due to the decrease in screen additions during the period. We did not open any theatres in Mexico during
fiscal 2008 and opened two theatres with 21 screens during fiscal 2007. Rent expense increased 5.0%, or $1,060,000, during the thirty-nine weeks ended December 27, 2007 compared to
the thirty-nine
weeks ended December 28, 2006 primarily due to the addition of two theatres with 21 screens in Mexico during the prior year. International costs and expenses were negatively impacted by a
weaker U.S. dollar, although this did not contribute materially to our consolidated earnings from continuing operations. We continually monitor the performance of our international theatres, and
factors such as changing consumer preferences for filmed entertainment in international markets and our inability to sublease vacant retail space could negatively impact operating results and result
in future closures, sales, dispositions and theatre closure charges prior to expiration of underlying lease agreements.



Merger, acquisition and transaction costs.Merger, acquisition and transaction costs decreased $3,210,000 from $9,363,000 to
$6,153,000 during the thirty-nine weeks ended December 27, 2007 compared to the thirty-nine weeks ended December 28, 2006. Current period costs are primarily
comprised of professional and consulting expenses related to a proposed initial public offering of common stock that was withdrawn on June 19, 2007 and preacquisition expenses for casualty
insurance losses and payments for a unionsponsored pension plan related to the Merger with Loews.

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Management fees.Management fees were unchanged during the thirty-nine weeks ended December 27, 2007.
Management fees of $1,250,000 are paid quarterly, in advance, to our Sponsors in exchange for consulting and other services.

Other.Other general and administrative expense increased 4.6%, or $1,655,000, during the thirty-nine weeks ended
December 27, 2007 compared to the thirty-nine weeks ended December 28, 2006. The increase in other general and administrative expenses is primarily due to a decrease in
pension income of $7,477,000 related to an amendment to freeze our Plans as of December 31, 2006 which resulted in the recording of a curtailment gain of $10,983,000 during the thirteen weeks
ended December 28, 2006 offset by a decrease in incentive compensation of $1,785,000 related to declines in expected annual operating performance as a percentage of the annual target underlying
our annual incentive plan. Additionally, stock compensation expense decreased $5,261,000 during the thirty-nine weeks ended December 27, 2007 compared to the thirty-nine
weeks ended December 28, 2006 due primarily to the accelerated vesting of certain options as a result of entry into a separation and general release agreement with the holder of these options
during the thirty-nine weeks ended March 29, 2007 and forfeitures during the thirteen weeks ended September 27, 2007. As a result of the accelerated vesting during the prior
year and forfeitures during the current year, there is no expense related to these options during the current year.

Depreciation and Amortization.Depreciation and amortization decreased 2.6%, or $4,925,000, compared to the prior period. The
prior year includes a cumulative adjustment to depreciation expense of approximately $2,200,000 related to adjustments to fair value for the Merger.

Disposition of Assets and Other Gains.Disposition of assets and other gains were $1,613,000 in the current period compared
to $11,184,000 in the prior period. The current and prior periods include $1,980,000 and $13,130,000 respectively, of settlements received related to fireproofing litigation recoveries at various
theatres. The current year also includes contingent legal expense related to the litigation recoveries of $457,000. The prior year includes a loss on the dispositions of theatres in the United States
as required by and in connection with the Mergers of $1,946,000.

Other Income.Other income includes $9,476,000 and $9,401,000 of income related to the derecognition of stored value card
liabilities as to which we believe future redemption to be remote, during the thirty-nine weeks ended December 27, 2007 and December 28, 2006, respectively. Other income
includes insurance recoveries related to Hurricane Katrina of $1,246,000 for property losses in excess of property carrying cost and $397,000 for business interruption during the
thirty-nine weeks ended December 27, 2007.

Interest Expense.Interest expense decreased 23.3% or $40,731,000, primarily due to decreased borrowings.

AMC
received net proceeds upon completion of the NCM initial public offering and debt financing of $517,122,000. We used the net proceeds from the NCM initial public offering, along with
cash on hand, to redeem our 91/2% senior subordinated notes due 2011 (the "Notes due 2011"), our senior floating rate notes due 2010 (the "Floating Notes due 2010") and
97/8% senior subordinated notes due 2012 (the "Notes due 2012"). On March 19, 2007 we redeemed $212,811,000 aggregate principal amount of our Notes due 2011 at 100% of principal
value, on March 23, 2007 we redeemed $205,000,000 aggregate principal amount of our Floating Notes due 2010 at 103% of principal value and on March 23, 2007 we redeemed $175,000,000
aggregate principal amount of our Notes due 2012 at 104.938% of principal value.

Equity in (Earnings) Losses of Non-Consolidated Entities.Equity in earnings of non-consolidated
entities were ($34,932,000) in the current period compared to losses of $3,681,000 in the prior period. Equity in earnings of HGCSA were ($18,743,000) during the thirty-nine weeks ended
December 27, 2007 and include the gain related to its disposition in July 2007 of $18,751,000. Equity in (earnings) losses

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related
to our investment in National CineMedia, LLC was ($15,286,000) and $2,976,000 for the thirty-nine weeks ended December 27, 2007 and December 28, 2006,
respectively.

Investment Income.Investment income was $23,536,000 for the thirty-nine weeks ended December 27, 2007
compared to $10,281,000 for the thirty-nine weeks ended December 28, 2006. The thirty-nine weeks ended December 27, 2007 includes a gain on the sale of our
investment in Fandango of $15,977,000. Interest income decreased $2,921,000 from the prior period due primarily to lower rates of interest earned combined with lower overall cash and equivalents
available for investment.

Income Tax Provision.The provision for income taxes from continuing operations was $12,200,000 for the
thirty-nine weeks ended December 27, 2007 and $700,000 for the thirty-nine weeks ended December 28, 2006 and increased due primarily to the increase in earnings
from continuing operations before income taxes. See Note 11Income Taxes. We continually monitor the performance of our U.S. and Canada theatres and our projections of future
operating results to evaluate the likelihood of our ability to utilize deferred tax assets for which we have recorded a full valuation allowance. Improvement in our historical core earnings from
continuing operations before income taxes in the U.S. as well as improvement in our expected future core earnings from continuing operations before income taxes in the U.S. could result in the removal
of some or all of the valuation allowance recorded for the U.S. which could result in future reductions to our income tax provision and increases in net earnings.

Earnings from Discontinued Operations, Net.On May 11, 2006, we sold our operations in Iberia, including 4 theatres
with 86 screens in Spain and 1 theatre with 20 screens in Portugal. At the date of the sale these operations did not meet the criteria for discontinued operations because of continuing involvement in
the region through an equity method investment in Yelmo. In December 2006, we disposed of our investment in Yelmo, including 27 theatres with 310 screens in Spain, and the results of the operations in
Iberia have now been classified as discontinued operations. See Note 3Discontinued Operations for the components of the earnings from discontinued operations.

Net Earnings (Loss).Net earnings were $30,792,000 and a loss of $(45,302,000) for the thirty-nine weeks ended
December 27, 2007 and December 28, 2006, respectively.

LIQUIDITY AND CAPITAL RESOURCES

Our consolidated revenues are primarily collected in cash, principally through box office admissions and theatre concessions sales. We have an operating "float"
which partially finances our operations and which generally permits us to maintain a smaller amount of working capital capacity. This float exists because admissions revenues are received in cash,
while exhibition costs (primarily film rentals) are ordinarily paid to distributors from 20 to 45 days following receipt of box office admissions revenues. Film distributors generally release
the films which they anticipate will be the most successful during the summer and holiday seasons. Consequently, we typically generate higher revenues during such periods.

Holding Company Status

Holdings is a holding company with no operations of its own and has no ability to service interest or principal on its indebtedness or pay dividends other than
through any dividends it may receive from its subsidiaries. Under certain circumstances, AMC Entertainment is restricted from paying dividends to Holdings by the terms of the indentures relating to
its notes and its senior secured credit facility. AMC Entertainment's senior secured credit facility and note indentures contain provisions which limit the amount of dividends and advances which it
may pay or make to Holdings. Under the most restrictive of these provisions, set forth in the note indenture for the 85/8% Senior Fixed Rate notes due 2012, (the "Fixed Notes due 2012")
the amount of loans and dividends which AMC Entertainment could make to Holdings may not exceed $257,800,000 in the aggregate as of December 27, 2007. Under the note indentures, a loan to
Holdings would have to be on terms no less favorable to AMC Entertainment than

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could
be obtained in a comparable transaction on an arm's length basis with an unaffiliated third party and be in the best interest of AMC Entertainment. Provided no event of default has occurred or
would result, the senior secured credit facility also permits AMC Entertainment to pay cash dividends to Holdings for specified purposes, including indemnification claims, taxes, up to $4,000,000
annually for operating expenses, repurchases of equity awards to satisfy tax withholding obligations, specified management fees, fees and expenses of permitted equity and debt offerings and to pay for
the repurchase of stock from employees, directors and consultants under benefit plans up to specified amounts. Depending on the net senior secured leverage ratio, as defined in the senior secured
credit facility, AMC Entertainment may also pay Holdings a portion of net cash proceeds from specified assets sales.

Cash Flows from Operating Activities

Cash flows provided by operating activities, as reflected in the Consolidated Statements of Cash Flows, were $227,312,000 and $205,351,000 during the
thirty-nine weeks ended December 27,
2007 and December 28, 2006, respectively. The increase in operating cash flows during the thirty-nine weeks ended December 27, 2007 is primarily due to the increase in net
earnings. We had working capital deficits as of December 27, 2007 and March 29, 2007 of $202,018,000 and $40,370,000, respectively. We have the ability to borrow against our credit
facility to meet obligations as they come due (subject to limitations on the incurrence of indebtedness in our various debt instruments) and had approximately $182,496,000 and $177,500,000 available
on our credit facility to meet these obligations for the periods ended December 27, 2007 and March 29, 2007, respectively.

Cash Flows from Investing Activities

Cash provided by (used in) investing activities, as reflected in the Consolidated Statements of Cash Flows were ($80,564,000) and $50,412,000, during the
thirty-nine weeks ended December 27, 2007 and December 28, 2006, respectively. As of December 27, 2007, we had construction in progress of $14,952,000. We had one
theatre in Canada with 24 screens under construction on December 27, 2007 that we expect to open in fiscal 2008. Cash outflows from investing activities include capital expenditures of
$99,395,000 and $100,836,000 during the thirty-nine weeks ended December 27, 2007 and December 28, 2006, respectively. We expect that our gross capital expenditures in fiscal
2008 will be between $150,000,000 and $160,000,000.

In
March 2007, the board of directors of Fandango, Inc. ("Fandango"), an online movie ticketing company in which we owned approximately 8.4% of the outstanding common stock on an
as converted basis as of March 29, 2007, approved an Agreement and Plan of Merger (the "Fandango Merger Agreement"), which was adopted and approved by its stockholders. Pursuant to the Fandango
Merger Agreement, we and the other existing stockholders sold our interests in Fandango to Comcast Corporation. The transaction closed in May of 2007. In connection with the transaction, we received
an equity earn up which raised our interest in Fandango to approximately 10.4% of the outstanding common stock on an as converted basis immediately prior to the sale of our shares. Pursuant to the
terms of the Fandango Merger Agreement and subject to certain closing adjustments, we estimate that we will receive a total of approximately $20,000,000 in cash consideration in connection with the
sale of our interest in Fandango of which $17,977,000 was received during the thirty-nine weeks ended December 27, 2007.

On
July 5, 2007 we disposed of our investment in HGCSA, a partnership that operated 17 theatres in South America, for sales proceeds of $28,682,000.

In
May 2006, AMCEI and its subsidiary AMC Entertainment International Limited sold its interests in AMC Entertainment España S.A., which owned and operated 4
theatres with 86 screens in Spain, and Actividades Multi-Cinemas E Espectáculos, LDA, which owned and operated 1 theatre with 20 screens in Portugal for a net sales price of
approximately $35,446,000.

In
December 2006, we disposed of our investment in Yelmo which owned and operated 27 theatres with 310 screen in Spain as of the date sold for proceeds of $52,137,000.

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During
the thirty-nine weeks ended December 28, 2006, we sold six theatres with 68 screens, exchanged two theatres with 32 screens and closed one theatre with eight
screens in the U.S. as required by and in connection with the approval of the Mergers for an aggregate sales price of $64,302,000.

We
fund the costs of constructing new theatres using existing cash balances, cash generated from operations or borrowed funds, as necessary. We generally lease our theatres pursuant to
long-term non-cancelable operating leases which may require the developer, who owns the property, to reimburse us for a portion of the construction costs. However, we may
decide to own the real estate assets of new theatres and, following construction, sell and leaseback the real estate assets pursuant to long-term non-cancelable operating
leases. We may also decide to sell certain real estate assets that we currently own where the value of the real estate may be greater than the value generated by our theatre operations.

Historically,
we have either paid for or leased the equipment used in a theatre.

Cash Flows from Financing Activities

Cash flows used in financing activities, as reflected in the Consolidated Statement of Cash Flows, were $276,440,000 and $14,095,000 during the
thirty-nine weeks ended December 27, 2007 and December 28, 2006, respectively.

During
the thirty-nine weeks ended December 27, 2007 we paid a dividend of $270,588,000 to our stockholder AMC Entertainment Holdings, Inc.

Reference
is made to Management's Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital Resources in our Annual Report on
Form 10-K for the fiscal year ended March 29, 2007 for certain information about our New Credit Facility, the Cinemex Credit Facility, our 8% Senior Subordinated Notes due
2014 (the
"Notes due 2014"), 11% Senior Subordinated Notes due 2016 (the "Notes due 2016"), 85/8% Senior Notes due 2012 (the "Fixed Notes due 2012") and Discount Notes due 2014.

The
New Credit Facility is with a syndicate of banks and other financial institutions and provides financing of up to $850,000,000, consisting of a $650,000,000 term loan facility with a
maturity of seven years and a $200,000,000 revolving credit facility with a maturity of six years. The revolving credit facility includes borrowing capacity available for Mexican
peso-denominated revolving loans, for letters of credit and for swingline borrowings on same-day notice. As of December 27, 2007, we had no borrowings under the
revolving credit facility and $638,625,000 was outstanding under the term loan facility at an interest rate of 6.615%.

Borrowings
under the New Secured Credit Facility bear interest at a rate equal to an applicable margin plus, at our option, either a base rate or LIBOR. On March 13, 2007, we
amended the Senior Secured Credit Facility to, among other things, lower the interest rates related to our term loan, reduce our unused commitment fee and amend the change of control definition so
that an initial public offering and related transactions would not constitute a change of control. The current applicable margin for borrowings under the revolving credit facility is 0.75% with
respect to base rate borrowings and 1.75% with respect to LIBOR borrowings, and the current applicable margin for borrowings under the term loan facility is 0.75% with respect to base rate borrowings
and 1.75% with respect to LIBOR borrowings. The applicable margin for such borrowings may be reduced, subject to AMC Entertainment attaining certain leverage ratios. In addition to paying interest on
outstanding principal under the Senior Secured Credit Facility, AMC Entertainment is required to pay a commitment fee to the lenders under the revolving credit facility in respect of the unutilized
commitments thereunder at a rate equal to 0.25%. It will also pay customary letter of credit fees. AMC Entertainment may voluntarily repay outstanding loans under the New Credit Facility at any time
without premium or penalty, other than customary "breakage" costs with respect to LIBOR loans. AMC Entertainment is required to repay $1,625,000 of the term loan quarterly, beginning March 30,
2006 through September 30, 2012, with any remaining balance due on January 26, 2013.

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The indentures relating to our outstanding notes allow us to incur all permitted indebtedness (as defined therein) without restriction, which includes all amounts borrowed under the New
Credit Facility. The indentures also allow us to incur any amount of additional debt as long as we can satisfy the coverage ratio of each indenture, after giving effect to the event on a pro forma
basis (under the indentures for the Fixed Notes due 2012, Notes due 2014, Notes due 2016 and Discount Notes due 2014). Under the indenture relating to the Discount Notes due 2014, the most restrictive
of the indentures, we could borrow approximately $1,333,300,000 as of December 27, 2007 in addition to permitted indebtedness (assuming an interest rate of 11% on the additional borrowings). If
we cannot satisfy the coverage ratios of the indentures, generally we can incur, in addition to amounts borrowed under the credit facility, no more than $100,000,000 of new "permitted indebtedness"
under the terms of the indentures relating to the Fixed Notes due 2012, Notes due 2014, Notes due 2016 and Discount Notes due 2014.

The
indentures relating to the above-described notes also contain covenants limiting dividends, purchases or redemptions of stock, transactions with affiliates, and mergers and sales of
assets, and require us to make an offer to purchase the notes upon the occurrence of a change in control, as defined in the indentures. Upon a change of control (as defined in the indentures), we
would be required to make an offer to repurchase all of the outstanding Notes due 2016, Notes due 2014, Fixed Notes due 2012, and the Discount Notes due 2014, at a price equal to 101% of the principal
amount thereof plus accrued and unpaid interest to the date of repurchase.

As
of December 27, 2007, we were in compliance with all financial covenants relating to the New Credit Facility, the Cinemex Credit Facility, the Notes due 2016, Notes due 2014,
the Fixed Notes due 2012, and the Discount Notes due 2014.

We
believe that cash generated from operations and existing cash and equivalents will be sufficient to fund operations and planned capital expenditures and potential acquisitions for at
least the next twelve months and enable us to maintain compliance with covenants related to the New Credit Facility and the notes.

Commitments and Contingencies

The Company has commitments and contingencies for capital and financing leases, corporate borrowings, operating leases, capital related betterments and pension
funding that were summarized in a table in the Company's Form 10-K for the year ended March 29, 2007. Since March 29, 2007 there have been no material changes to the
commitments and contingencies of the Company outside the ordinary course of business, except as discussed in the following paragraph.

As
discussed in Note 11Income Taxes, the Company adopted FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxesan interpretation
of FASB No. 109." At March 29, 2007, the Company had a liability for unrecognized benefits for $44,100,000. There are currently unrecognized tax benefits which we anticipate will be
resolved in the next 12 months; however, we are unable at this time to estimate what the impact on our unrecognized tax benefits will be.

NEW ACCOUNTING PRONOUNCEMENTS

In December 2007, the FASB issued SFAS No. 160,Noncontrolling Interests in Consolidated Financial Statementsan
amendment of ARB No.51(SFAS 160). SFAS 160 establishes accounting and reporting standards that require noncontrolling interests in a subsidiary to be reported as
a component of equity, changes in a parent's ownership interest while the parent retains its controlling interest to be accounted for as equity transactions, and any retained noncontrolling equity
investment upon the deconsolidation of a subsidiary to be initially measured at fair value. The Statement also establishes reporting requirements that clearly identify and distinguish between the
interests of the parent and the interests of the non-controlling owners. SFAS 160 is effective as of the beginning of the first fiscal year beginning on or after December 15,
2008, and is effective for the Company at the beginning of fiscal 2010. Earlier adoption is prohibited. The

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Company
has not determined the effect that the application of SFAS 160 will have on its consolidated financial position.

In
December 2007, the FASB issued Statement No. 141 (revised 2007),Business Combinations(SFAS 141R). SFAS 141R
establishes the principles and requirements for how an acquirer: 1) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any
noncontrolling interest in the acquiree; 2) in a business combination achieved in stages, sometimes referred to as a step acquisition, recognize the identifiable assets and liabilities, as well
as the noncontrolling interest in the acquiree, at the full amounts of their fair values; 3) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain
purchase. SFAS 141R establishes disclosure requirements to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This Statement is
to be applied prospectively to business
combinations for which the acquisition date is on or after the beginning of the first annual reporting period on or after December 15, 2008, and is effective for the Company at the beginning of
fiscal 2010. Earlier adoption is prohibited. The Company is in the process of evaluating the impact SFAS 141R will have on its financial statements.

In
December 2007, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 110 (SAB 110). SAB 110 extends the opportunity to use the "simplified"
method beyond December 31, 2007, as was allowed by Staff Accounting Bulletin No. 107 (SAB 107). Under SAB 110 and 107, a company is able to use the "simplified" method in
developing an estimate of expected term based on the date of exercise of "plain vanilla" share options. SAB 110 allows companies which do not have sufficient historical experience to provide a
reasonable estimate to continue use of the "simplified" method for estimating the expected term of "plain vanilla" share option grants after December 31, 2007. We will continue to use the
"simplified" method until there is sufficient historical experience to provide a reasonable estimate of expected term in accordance with SAB 110. SAB 110 is effective for the Company on
January 1, 2008.

In
February 2007, the FASB issued SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities, including an
amendment of FASB Statement No. 115 (SFAS 159). SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not
currently required to be measured at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. SFAS 159 does not affect any
existing accounting literature that requires certain assets and liabilities to be carried at fair value. We will be required to adopt this standard in the first quarter of fiscal 2009. Management is
currently evaluating the requirements of SFAS 159 and has not yet determined the impact on the consolidated financial statements.

In
September 2006, the FASB released SFAS No. 157,Fair Value Measurementswhich provides enhanced guidance for using fair value to
measure assets and liabilities. The standard applies whenever other standards require (or permit) assets or liabilities to be measured at fair value. It does not expand the use of fair value in any
new circumstances. Under the standard, fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in
the market in which the reporting entity transacts. It clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability.
SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, or the first quarter of
fiscal 2009 for AMCE. Early adoption is permitted. We do not anticipate this standard having a material effect on our consolidated financial statements.

In
July 2006, the FASB released FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxesan Interpretation of FASB Statement
109("FIN 48" or the "Interpretation"), which clarifies the accounting for uncertainty in income taxes recognized in companies' financial statements in accordance with
FASB Statement No. 109, "Accounting for Income Taxes." FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a
tax position taken or expected to be taken in a tax return. The evaluation of a tax position in accordance with FIN 48 is

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a
two-step process. The first step is recognition whereby companies must determine whether it is more likely than not that a tax position will be sustained upon examination. The second
step is measurement whereby a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in
the financial statements. The interpretation also provides guidance on derecognition of recognized tax benefits, classification, interest and penalties, accounting in interim periods, disclosure and
transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. We adopted the new requirements in the first quarter of fiscal 2008. As a result of the adoption of
FIN 48, we recorded a $5,373,000 increase in current deferred tax assets, a $5,373,000 reduction of goodwill, a $5,373,000 current FIN 48 liability and a $5,373,000 charge to the
beginning accumulated deficit that is reported as a cumulative effect adjustment for a change in accounting principle to the opening balance sheet position of stockholder's accumulated deficit at
March 30, 2007. See Note 11Income Taxes.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

We are exposed to various market risks including interest rate risk and foreign currency exchange rate risk. All financial instruments are used solely for hedging
purposes and are not issued or held for speculative reasons.

Interest Rate Swaps.We periodically enter into interest rate swap agreements to manage the interest rate risk associated
with variable rate debt instruments. In October 2007, AMCE executed an interest rate swap agreement, scheduled to mature in April 2009, to hedge $200,000,000 of our variable rate debt obligation.
Under the terms of the agreement, we pay interest at a fixed rate of 4.707% and receive interest at a variable rate based on 1-month U.S. Dollar LIBOR-BBA. In addition, Grupo
Cinemex is party to an interest rate swap with notional amounts ranging between 283,932,000 and 907,146,000 Mexican pesos ($26,151,000 and $83,894,000). Under the terms of the agreement, we pay
interest at a fixed rate of 9.89% and receive interest at a variable rate based on 1-month MXN TIIE. The interest rate swap is scheduled to mature in August 2009. Based upon a sensitivity
analysis performed as of December 27, 2007, a decrease in the underlying interest rates of 100 basis points would increase the fair value of the interest rate swap liability by $3,176,000 and a
100 basis point increase in the underlying interest rates would decrease the fair value of the interest rate swap liability by $3,052,000.

Market risk on variable-rate financial instruments.We maintain an $850,000,000 senior secured credit facility,
comprised of a $200,000,000 revolving credit facility and a $650,000,000 term loan facility, which permits borrowings at a rate equal to an applicable margin plus, at our option, either a base rate or
LIBOR. Increases in market interest rates would cause interest expense to increase and earnings before income taxes to decrease. The change in interest expense and earnings before income taxes would
be dependent upon the weighted average outstanding borrowings during the reporting period following an increase in market interest rates. We had no borrowings on our new revolving credit facility as
of December 27, 2007 and had $638,625,000 outstanding under the term loan facility on December 27, 2007. Therefore, a 100 basis point increase in market interest rates would have
increased or decreased interest expense on the new credit facility by $4,446,000 during the thirty-nine weeks ended December 27, 2007.

Market risk on fixed-rate financial instruments.Included in long-term debt are $325,000,000 of our
Notes due 2016, $300,000,000 of our Notes due 2014, $250,000,000 of our Fixed Notes due 2012 and $240,795,000 of our Discount notes due 2014. Increases in market interest rates would generally cause a
decrease in the fair value of the Notes due 2016, Notes due 2014 and Fixed Notes due 2012 and a decrease in market interest rates would generally cause an increase in fair value of the Notes due 2016,
Notes due 2014 and Fixed Notes due 2012.

Foreign currency exchange rates.We currently operate theatres in Canada, Mexico, France and the United Kingdom. As a result
of these operations, we have assets, liabilities, revenues and expenses denominated in foreign currencies. The strengthening of the U.S. dollar against the respective currencies causes a decrease in
the carrying values of assets, liabilities, revenues and expenses denominated in such

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foreign
currencies and the weakening of the U.S. dollar against the respective currencies causes an increase in the carrying values of these items. The increases and decreases in assets, liabilities,
revenues and expenses are included in accumulated other comprehensive income. Changes in foreign currency exchange rates also impact the comparability of earnings in these countries on a
year-to-year basis. As the U.S. dollar strengthens, comparative translated earnings decrease, and as the U.S. dollar weakens comparative translated earnings from foreign
operations increase. Although we do not currently hedge against foreign currency exchange rate risk, we do not intend to repatriate funds from the operations of our international theatres but instead
intend to use them to fund current and future operations. A 10% fluctuation in the value of the U.S. dollar against all foreign currencies of countries where we currently operate theatres would either
increase or decrease earnings before income taxes and accumulated other comprehensive income (loss) by approximately $303,000 and $37,171,000, respectively, as of December 27, 2007.

Item 4T.    Controls and Procedures.



The
Company maintains a set of disclosure controls and procedures designed to ensure that material information required to be disclosed in its filings under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that material information is accumulated and
communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. The Company's
Chief Executive Officer and Chief Financial Officer have evaluated these disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q
and have determined that such disclosure controls and procedures were effective.



There
has been no change in our internal control over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.

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PART IIOTHER INFORMATION

Item 1.    Legal Proceedings

Reference is made to Part I. Item 3. Legal Proceedings in our Annual Report on Form 10-K for the fiscal year ended
March 29, 2007 for information on certain litigation to which we are a party.

One
of the cases referred to in our Annual Report on Form 10-K isAmerican Multi Cinema, Inc. v. Midwest Drywall Company, Inc.
(No. CV07-00171).We received settlements of $1,980,000 related to this matter during the thirty-nine weeks ended December 27, 2007.

We
are a party to various other legal proceedings in the ordinary course of business, none of which is expected to have a material adverse effect on us.

Item 1A.    Risk Factors

Reference is made to Part I Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended March 29, 2007.

We depend on motion picture production and performances.

Our ability to operate successfully depends upon the availability, diversity and appeal of motion pictures, our ability to license motion pictures and the
performance of such motion pictures in our markets. We mostly license first-run motion pictures, the success of which have increasingly depended on the marketing efforts of the major
studios. Poor performance of, or any disruption in the production of (including by reason of a strike) these motion pictures, or a reduction in the marketing efforts of the major studios, could hurt
our business and results of operations. In addition, a change in the type and breadth of movies offered by studios may adversely affect the demographic base of moviegoers.

The
master contract between film producers and two major writers' unions expired on October 31, 2007, and no agreement has yet been reached to extend or replace the contract. A
strike by union members continues and a disruption in the production of motion pictures could result.

In
addition, the master contracts between film producers and the directors' and screen actors' unions are each scheduled to expire in July 2008. The film producers recently reached a
tentative agreement with the directors' union in advance of the contract expiration date. No agreements have yet been reached to extend or replace the screen actors' contract. If union members choose
to strike or film producers choose to lock out the union members, a disruption in the production of motion pictures could result.

Item 4.    Submission of Matters to a Vote of Security Holders.

In December 2007, the Requisite Stockholder majority of Marquee Holdings Inc. unanimously approved a seven-year agreement with IMAX to install
the IMAX digital system in 100 AMC locations over a 27 month period, and also approved an amended employment agreement for Peter C. Brown, Chairman of the Board, Chief Executive Officer,
and President of the Company.

In
December 2007, the Requisite Class L Stockholders of Marquee Holdings Inc. unanimously approved the appointment of Eliot Merrill to the Board of Directors, to fill the
vacancy created by Michael Connelly's death.

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Item 6.    Exhibits.

EXHIBIT INDEX

|EXHIBIT NUMBER |  | DESCRIPTION                                                                                                                                                                                                                                                                               
|-------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.1            |  | Agreement and Plan of Merger, dated June 20, 2005, by and among Marquee Holdings Inc. and LCE Holdings, Inc. (incorporated by reference from Exhibit 2.1 to the Company's Form 8-K filed on
June 24, 2005).                                                                               
|2.2            |  | Agreement and Plan of Merger, dated as of July 22, 2004 by and among Marquee Holdings Inc., Marquee Inc. and AMC Entertainment Inc. (incorporated by reference from Exhibit 2.1 to Form 8-K filed June 23,
2004).                                                                         
|2.3            |  | Agreement and Plan of Merger, dated June 11, 2007, by and among Entertainment Holdings Inc., and Marquee Merger Sub Inc. (incorporated by reference from Exhibit 2.1 to the Company's Form 8-K filed on June 13,
2007).                                                                   
|3.1            |  | Restated and Amended Certificate of Incorporation of AMC Entertainment Inc. (as amended on December 2, 1997 and September 18, 2001 and December 23, 2004) (incorporated by reference from Exhibit 3.1 to the Company's
Form 8-K (File No. 1-8747) filed December 27, 2004).               
|3.2            |  | Amended and Restated Bylaws of AMC Entertainment Inc. (incorporated by Reference from Exhibit 3.2 to the Company's Form 10-Q (File No. 1-8747) filed December 27, 2004. Certificates of Incorporation or corresponding instrument,
 with amendments, of the follow additional registrants:
|*10.1          |  | Agreement with Richard T. Walsh.                                                                                                                                                                                                                                                          
|10.2           |  | Amended and Restated Employment Agreement for Peter C. Brown (incorporated by reference from Exhibit 9.01 to the Company's Form 8-K (File No. 001-08747) filed December 20, 2007).                                                                                                        
|*31.1          |  | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Acts of 2002.                                                                                                                                                                                      
|*31.2          |  | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Acts of 2002.                                                                                                                                                                                      
|*32.1          |  | Section 906 Certifications of Peter C. Brown (Chief Executive Officer) and Craig R. Ramsey (Chief Financial Officer) furnished in accordance with Securities Act Release 33-8212.                                                                                                         

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

|                       |  | MARQUEE HOLDINGS INC.                                                                       
|---------------------- |  | --------------------------------------------------------------------------------------------
|Date: February 8, 2008 |  | /s/PETER C. BROWNPeter C. Brown
Chairman of the Board,
Chief Executive Officer and President
|Date: February 8, 2008 |  | /s/CRAIG R. RAMSEYCraig R. Ramsey
Executive Vice President and
Chief Financial Officer      

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