SONY CORPORATION OF AMERICA AND CINEPLEX ODEON
TO MERGE THEATRE CIRCUITS
Merger will create world's largest theatrical exhibition company

FOR RELEASE:  TUESDAY, SEPTEMBER 30, 1997

{All $ are in U.S. $}
NEW YORK/TORONTO:  Sony Corporation of America (SCA) and Cineplex Odeon 
today announced an agreement to merge Sony Retail Entertainment's 
(SRE's) Loews Theatres Exhibition Group and Cineplex Odeon to create the 
world's largest theatrical exhibition company, with annual revenues of 
approximately $1 billion.  The combined company will be named Loews 
Cineplex Entertainment (LCE) and will have over 2,600 screens in 
approximately 460 locations in North America.

The transaction will involve the merger of Cineplex Odeon with the Loews 
Theatres Exhibition Group, which consists of Sony/Loews Theatres and its 
joint ventures with Star Theatres and Magic Johnson Theatres.  SRE will 
own 51.1% of LCE's shares (representing 49.9% of the voting shares) and 
Universal Studios will own 26% subsequent to a cash contribution of 
$84.5 million; the Charles Rosner Bronfman Family Trust will own 9.6% 
and the public Cineplex Odeon shareholders will own 13.3% of the new 
company.  Cineplex Odeon shares will be exchanged for shares in LCE at 
closing.  It is estimated that the total number of shares in the 
combined company will be 452 million.  It is anticipated that the 
transaction will close in approximately six months.


"The merger of these two premiere theatre chains will create the global 
leader in theatrical exhibition and advance Sony's involvement in this 
rapidly expanding industry," remarked Howard Stringer, President and 
Chief Operating Officer, Sony Corporation of America.

Lawrence J. Ruisi, currently President of Sony Retail Entertainment, has 
been named President and Chief Executive Officer of LCE.  Mr. Ruisi, who 
spearheaded the merger, has worked extensively in theatrical exhibition 
as well as filmed entertainment.  He has overseen SRE's Theatrical 
Exhibition Group since 1991, and, in that time, has been instrumental in 
both the physical and financial growth of the theatres. Previously, Mr. 
Ruisi served as Chief Financial Officer of Columbia Pictures 
Entertainment, where he was involved in the acquisition of Loews 
Theatres.  As one of the original executives of TriStar Pictures in 
1983, Mr. Ruisi has a proven track record in building successful 
entertainment companies.

According to Mr. Ruisi, the merger of the two circuits will enable the 
combined company to compete more effectively on a global basis.  "We are 
very excited about what we have set in motion with this combination, 
creating a company with significant growth capacity and the opportunity 
to enjoy substantial cost savings and operating efficiencies," he said.  
"Using our expertise in designing, building and operating successful 
theatres, coupled with our significant cash flow and full access to the 
capital markets, LCE will be able to aggressively participate in the 
dramatic changes taking place in the U.S. and Canadian marketplace, as 
well as pursue the many lucrative opportunities which exist in the 
international markets."

Allen Karp, who has led Cineplex Odeon as President and Chief Executive 
Officer since 1990 and who initiated the merger for Cineplex, will serve 
as Chairman and Chief Executive Officer of Cineplex Odeon Canada, the 
Canadian operating subsidiary of LCE.  During his tenure at Cineplex, 
Mr. Karp has repositioned the theatre circuit as a leading exhibitor in 
the U.S. and Canada.  He has kept Cineplex Odeon a major force in the 
theatrical exhibition business.

Commenting on the merger, Mr. Karp stated, "I am proud to have seen this 
merger through to fruition for the benefit of our company and its 
shareholders.  Additionally, this combination will benefit the Canadian 
film industry in that Cineplex Odeon has a long and proud history of 
supporting the industry, and I am delighted that LCE is committed to 
continue that tradition."

On a combined pro forma basis for the 12 months ending August 31, 1997, 
LCE would have generated approximately $700 million in box office 
revenues and approximately $140 million in EBITDA.  It is anticipated 
that as of the closing, combined total debt would be approximately $700 
million.  The pro forma earnings capacity of the combined entity coupled 
with its strengthened capital structure will serve to relieve many of 
the capital constraints and balance sheet issues Cineplex Odeon has 
faced to date.

The merger of the two theatre circuits will give LCE a key presence in 
22 states, including major cities such as New York, Los Angeles, 
Chicago, Boston, Seattle, Washington D.C. and Houston, as well as a 
leading position in Canada, including major cities such as Toronto, 
Montreal and Vancouver, as one of the two major exhibitors in that 
country.

Morgan Stanley Dean Witter is advising the Independent Committee of 
Cineplex Odeon with respect to this transaction and has provided the 
Committee with a fairness opinion in that regard.  Credit Suisse First 
Boston is advising Sony Corporation of America.



LCE's corporate headquarters will be in New York, with U.S. operational 
headquarters in New York and Canadian operational headquarters in 
Toronto.  The merger is subject to shareholder and regulatory approval 
in both Canada and the United States.  Upon obtaining these approvals, 
it is intended that LCE will be listed on the New York Stock Exchange 
and the Toronto Stock Exchange.  Cineplex Odeon currently trades on the 
New York and Toronto Stock Exchanges under the symbol CPX.
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FOR MORE INFORMATION:

Sony/Loews Theatres:		
Marc Pascucci	(212) 833-6148

Sony Corporation of America:	
Joanne Hvala:   	(212) 833-6975

Cineplex Odeon:			
Howard Lichtman	(416) 323-6634