Cinemax files DRHP for IPO

Mumbai, October 4, 2006: Cinemax India Ltd. one of the largest Exhibition theatre chains in India operating 10 properties with 33 screens and 9,316 seats has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).

Cinemax is part of the Kanakia Group which has a track record of over 20 years in real estate development. The group has developed over 5 million sq. ft. of Residential and Commercial real estate.

For the year ended March 31, 2006, Cinemax clocked a total income of Rs. 438.60 million on a standalone basis with a Net Profit of Rs. 67.64 million.

Cinemax proposes to use the proceeds from the IPO primarily to meet the capital expenditure to be incurred for setting up screens across India. Apart from the expansion funding, the proceeds will be also be utilised for General Corporate Purposes including Acquisitions.

ABOUT CINEMAX

Cinemax India Ltd. is an emerging family entertainment centre focused primarily on Exhibition and Gaming business with limited interests in mall development. Cinemax is one of the largest Exhibition theatre chains in India operating 10 properties with 33 screens and 9,316 seats and is the dominant player in Mumbai, which is home to the Hindi Film industry. Cinemax owns/ controls about 30 screens in Mumbai and Thane and is also one of the largest owners of multiplex properties in India with 23 screens spread over 155,000 sq ft area.

The 'Cinemax' brand is one of the most recognizable film exhibition brands. Over 1.4 million patrons in Q1FY07 and 3.67 million patrons in FY06 visited various Cinemax theatres.

Cinemax is part of the Kanakia Group with a track record of over 20 years in real estate development. The Kanakia Group has developed over 5 million sq. ft. of Residential and Commercial real estate.

Exhibition

The Cinemax exhibition chain is a combination of high-end multiplexes and budget retrofit single-screens. Cinemax believes in providing customer satisfaction through process enhancements and constant innovation in our services and facilities such as high comfort recliner seating arrangements in ' The Red Lounge ™ ', massage chairs, etc.

Gaming

Cinemax gaming business is currently operational under the brand name "� ' Giggles- The Gaming Zone ™' is located at the Eternity Mall, Thane. It is spread over 13,000 sq ft of area and offers around 50 state-of"�the"�art games. Cinemax plans to expand the gaming business by opening seven new Giggles gaming zones at some of its future multiplexes at different locations in India.

Mall Development

Cinemax has also developed over 200,000 sq feet of mall area at Eternity mall, Thane with tenants including Cinemax, Giggles, Globus, Proline, Planet M, Metro Shoes among others. Cinemax is currently, developing a mall at Nagpur with over 100,000 sq ft of area and 30,000 sq. ft. of area at Eternity mall, Thane (phase 2).