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[GRAPHIC - CINRAM LOGO]
2255 MARKHAM ROAD, SCARBOROUGH, ONTARIO, M1B 2W3

NEWS RELEASE
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FOR IMMEDIATE RELEASE

                         CINRAM AMENDS CREDIT FACILITIES
                          (ALL FIGURES IN U.S. DOLLARS)

TORONTO (AUGUST 25, 2004) - Cinram International Inc. (TSX: CRW) today announced
it has amended its $1,175 million credit facilities, originally established in
connection with its acquisition of the Time Warner businesses in 2003, to
significantly reduce borrowing costs. As part of the refinancing, the Company
also negotiated more favorable debt covenants to improve its financial
flexibility.

"The financial markets continue to recognize Cinram's improving credit quality.
These amendments reflect the benefits of our deleveraging strategy and of
improved financial performance," said Cinram chief financial officer Lewis
Ritchie. "These amendments also represent significant cost savings and will
provide us with greater financial flexibility going forward."

The interest rate on the outstanding principal amount of $181 million on
Cinram's $250 million term loan A facility has been reduced to the London
Interbank Offered Rate (LIBOR) plus 250 basis points, from LIBOR plus 300 basis
points.

Cinram used $65 million in cash to repay part of the $635 million outstanding
principal amount under its $675 million term loan B facility and part of the $98
million outstanding principal amount under its $100 million term loan C
facility. The remaining principal amounts outstanding under term loan facilities
B and C were paid out from a new $668 million term loan D facility that bears an
interest rate of LIBOR plus 300 basis points. Prior to the amendments, the term
loan B facility had an interest rate of LIBOR plus 375 basis points and the term
loan C facility an interest rate of LIBOR plus 575 basis points.

The maturity date for the term loan A facility remains 2007. The maturity date
for the term loan D facility is 2009; the maturity dates for term loan
facilities B and C were 2009 and 2010, respectively.

The terms of the $150 million revolving credit facility remain unchanged. At
June 30, 2004, there were no borrowings under this facility.

ABOUT CINRAM

Cinram International Inc. is the world's largest independent provider of
pre-recorded multimedia products and logistics services. With facilities in
North America and Europe, Cinram manufactures and distributes pre-recorded DVDs,
VHS video cassettes, audio CDs, audio cassettes and CD-ROMs for motion picture
studios, music labels, publishers and

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computer software companies around the world. The Company's shares are listed on
the Toronto Stock Exchange (CRW) and are included in the S&P/ TSX Composite
Index. For more information, visit our Web site at www.cinram.com.

Certain statements included in this release constitute "forward-looking
statements" within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company, or results of the multimedia
duplication/replication industry, to be materially different from any future
results, performance or achievements expressed or implied by such forward
looking statements. Such factors include, among others, the following: general
economic and business conditions, which will, among other things, impact the
demand for the Company's products and services; multimedia
duplication/replication industry conditions and capacity; the ability of the
Company to implement its business strategy; the Company's ability to retain
major customers; the Company's ability to invest successfully in new
technologies; the effective integration of the Time Warner businesses; and other
factors which are described in the Company's filings with the securities
commissions.

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FOR MORE INFORMATION:
Lyne Beauregard
Cinram International Inc.
Tel: (416) 321-7930
lynebeauregard@cinram.com