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24 August 2004

Terra Firma announces acquisition of Odeon

Terra Firma announces the acquisition of Odeon from its shareholders. The new company will be financed with a mixture of debt and equity with the debt being arranged by Barclays Capital.

Odeon is the leading cinema group in the UK and operates 97 well-invested cinemas with a total of 619 screens, a substantial number of which are freeholds or long leaseholds. Odeon has a strong financial track record and produced an EBITDA in 2003 of £38.5 million.

Guy Hands, Chief Executive of Terra Firma Capital Partners, said:

"I am delighted to announce the acquisition of Odeon which has a leading position in the attractive UK market. Today's deal makes strong financial sense - with the business being backed both by assets and stable cashflows. We also believe that there are exciting opportunities to develop Odeon further."

Notes to Editors

Terra Firma pursues a contrarian investment strategy, primarily targeting large, out-of-favour and asset-intensive companies with strong and reliable cashflows operating in basic service industries. The firm has a hands-on management style, working directly with its portfolio businesses to overhaul operations and transform strategy. Terra Firma is the successor to Nomura's Principal Finance Group established in 1994.

Advisors

Debt provider: Barclays Capital

Advisor to Terra Firma: Lazard

Legal advisor: Ashurst Morris Crisp

Accounting advisor: KPMG

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