Carmike Cinemas Acquires Two Theatres with an Aggregate of 16 Screens from Phoenix Big Cinemas in Accretive Transaction

  Carmike Cinemas Acquires Two Theatres with an Aggregate of 16 Screens from
  Phoenix Big Cinemas in Accretive Transaction

Business Wire

COLUMBUS, Ga. & KNOXVILLE, Tenn. -- December 14, 2012

Carmike Cinemas, Inc. (NASDAQ: CKEC), a leading entertainment, digital cinema
and 3-D motion picture exhibitor, today announced the completed acquisition of
two movie theatres with a total of 16 screens from Phoenix Big Cinemas
(“Phoenix Big”), the 20th largest theatre circuit in North America. The
Phoenix Big facilities have 8 analog screens each and are located in
Madisonville, KY and Greeneville, TN. Carmike plans to immediately begin
converting the screens to digital cinema, utilizing Christie digital
projectors from its own surplus inventory, as well as installing four 3-D
screens at each respective location, in conjunction with 3-D technology
partner RealD.

Carmike Cinemas President and Chief Executive Officer David Passman stated,
“The two Phoenix Big theatres represent an ideal complement to our existing
footprint in terms of geographic fit, market size and asset quality. The
digital conversion of all 16 auditoriums and the addition of cutting-edge
RealD 3-D technology will further enhance the movie-going experience for all
customers that frequent the Greeneville, TN and Madisonville, KY theatres. We
also look forward to enthusiastically welcoming the Phoenix Big associates at
both locations to the growing Carmike family.

“Importantly, the transaction announced today highlights Carmike’s position as
an industry-leading consolidator of theatres in small to mid-sized, non-urban
markets through accretive transactions. In the current environment we believe
there are further opportunities to optimize our portfolio through selective
acquisitions, as we continue on the path toward achieving the Company’s
strategic goal of expanding our footprint to 300 theatres and 3,000 screens.”

Carmike now has 21 Tennessee-based and 6 Kentucky-based entertainment
complexes.

About Carmike Cinemas (www.carmike.com)

Carmike Cinemas, Inc. is a U.S. leader in digital cinema and 3-D cinema
deployments and one of the nation’s largest motion picture exhibitors. As of
September 30, 2012, Carmike had 232 theatres with 2,242 screens in 35 states.
Carmike’s digital cinema footprint reached 2,119 screens, including 208
theatres with 748 screens that are also equipped for 3-D. The circuit also
includes 14 “Big D” large format digital experience auditoriums, featuring
state-of-the-art equipment and luxurious seating. As “America’s Hometown
Theatre Chain,” Carmike’s primary focus for its locations is small to
mid-sized communities.

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the federal securities laws. Statements that are not historical facts,
including statements about our beliefs, expectations and future performance,
are forward-looking statements. Forward-looking statements include statements
preceded by, followed by or that include the words, “believes,” “expects,”
“anticipates,” “plans,” “estimates,” “seeks” or similar expressions. Examples
of forward-looking statements in this press release include the Company’s
expectations regarding circuit expansion, additional acquisition
opportunities, long-term stakeholder value, and additional operating gains,
and beliefs about liquidity and financial flexibility. Forward-looking
statements are only predictions and are not guarantees of performance. These
statements are based on beliefs and assumptions of management, which in turn
are based on currently available information. The forward-looking statements
also involve risks and uncertainties, which could cause actual results to
differ materially from those contained in any forward-looking statement. Many
of these factors are beyond our ability to control or predict. Important
factors that could cause actual results to differ materially from those
contained in any forward-looking statement include, but are not limited to:
general economic conditions in our regional and national markets; our ability
to comply with covenants contained in our senior secured credit agreement and
the indenture governing our 7.375% Senior Secured Notes due 2019; our ability
to operate at expected levels of cash flow; financial market conditions
including, but not limited to, changes in interest rates and the availability
and cost of capital; our ability to meet our contractual obligations,
including all outstanding financing commitments; the availability of suitable
motion pictures for exhibition in our markets; competition in our markets;
competition with other forms of entertainment; and other factors, including
the risk factors disclosed in our Annual Report on Form 10-K for the year
ended December31, 2011 and our Quarterly Report on Form 10-Q for the quarter
ended March 31, under the caption “Risk Factors.” We believe these
forward-looking statements are reasonable; however, undue reliance should not
be placed on any forward-looking statements, which are based on current
expectations. Further, forward-looking statements speak only as of the date
they are made, and we undertake no obligation to update publicly any of them
in light of new information or future events.

Contact:

JCIR – Investor Relations/Corporate Communications
Robert Rinderman or Jennifer Neuman
212-835-8500 or ckec@jcir.com
or
Carmike Cinemas, Inc.
Richard B. Hare
Chief Financial Officer
706-576-3416
 
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