1

Cineplex Galaxy Income Fund Cineplex Galaxy Income Fund

2006 Third Quarter2006 Third QuarterCineplex Galaxy Income Fund Cineplex Galaxy Income Fund

2006 Third Quarter2006 Third Quarter

2

Cineplex Entertainment Circuit

Famous Players

Theatres: 54Screens: 575

Cineplex Odeon

Theatres: 52Screens: 507

Galaxy Cinemas

Theatres: 26Screens: 227

As of September 30, 2006

3

Famous Players Acquisition - Rationale

The leading film exhibitor in CanadaThe leading film exhibitor in Canada

Accretive to distributable cashAccretive to distributable cash

Complementary operations will lead to cost savingsComplementary operations will lead to cost savings

Opportunities to increase distributable cash through revenue Opportunities to increase distributable cash through revenue

growthgrowth

– Increase advertising market share and other incomeIncrease advertising market share and other income

Addition of high quality theatres in metropolitan marketsAddition of high quality theatres in metropolitan markets

Superior combined managementSuperior combined management

The leading film exhibitor in CanadaThe leading film exhibitor in Canada

Accretive to distributable cashAccretive to distributable cash

Complementary operations will lead to cost savingsComplementary operations will lead to cost savings

Opportunities to increase distributable cash through revenue Opportunities to increase distributable cash through revenue

growthgrowth

– Increase advertising market share and other incomeIncrease advertising market share and other income

Addition of high quality theatres in metropolitan marketsAddition of high quality theatres in metropolitan markets

Superior combined managementSuperior combined management

4

Box Office Market ShareMarket Share of Canadian Box Office RevenuesMarket Share of Canadian Box Office Revenues

Cineplex Galaxy32.1%

Cineplex Galaxy32.1%

Other 6.9%Other 6.9%

Cineplex GalaxyCineplex Galaxy

AMC 6.3%AMC 6.3%

Famous Players42.6%

Famous Players42.6%

Empire 6.0%Empire 6.0%

Landmark 3.1%Landmark 3.1%

Guzzo 3.0%Guzzo 3.0%

Combined After DivestitureCombined After Divestiture

Cineplex Entertainment64.2%

Cineplex Entertainment64.2% Empire 13.6%Empire 13.6%

Other 9.8%Other 9.8%

Guzzo 3.0%Guzzo 3.0%

AMC 6.3%AMC 6.3%

Landmark 3.1%Landmark 3.1%

Source: A.C. Nielsen EDI dataSource: A.C. Nielsen EDI data

5

Six Top-Tier Brands

SilverCity22 theatresSilverCity

22 theatresColiseum4 theatresColiseum4 theatres

Famous Players25 theatres

Famous Players25 theatres

Cineplex Odeon52 theatres

Cineplex Odeon52 theatres

Galaxy26 theatres

Galaxy26 theatres

Colossus3 theatresColossus3 theatres

As of September 30, 2006

6

IndustryIndustry

Industry Overview

overviewoverview

7

Canadian Box Office Revenue1965 - 2005

Canadian Box Office Revenue1965 - 2005

Consistent Long-Term Box Office Revenue Growth

Canadian Recessionary PeriodsCanadian Recessionary Periods

$0

$250

$500

$750

$1,000

1965 1970 1975 1980 1985 1990 1995 2000 2005

CAGR since 1965: 5.6%CAGR since 1965: 5.6%

8

Industry Box Office

Canadian Industry*

Cineplex Entertainment

Canadian Industry*

Cineplex Entertainment

2005 Q3 2006 YTD2005 Q3 2006 YTD

* Source: Motion Picture Theatre Associations of Canada* Source: Motion Picture Theatre Associations of Canada

-8.6% + 2.0% -8.6% + 2.0%

-6.1% +4.5% -6.1% +4.5%

9

Highest Grossing Films Released in 2005

Star Wars: Episode III $380 M

The Chronicles of Narnia $291 M

Harry Potter and Goblet of Fire $290 M

War of the Worlds $234 M

King Kong $218 M

Star Wars: Episode III $380 M

The Chronicles of Narnia $291 M

Harry Potter and Goblet of Fire $290 M

War of the Worlds $234 M

King Kong $218 M

Source: Box Office Mojo

10

Highest Grossing Films Released in 2006

Pirates of the Caribbean 2 $421 M

Cars $244 M

X-Men: The Last Stand $234 M

The Da Vinci Code $217 M

Superman Returns $199 M

Pirates of the Caribbean 2 $421 M

Cars $244 M

X-Men: The Last Stand $234 M

The Da Vinci Code $217 M

Superman Returns $199 M

Source: Box Office Mojo

11

Upcoming Films for 2006

Night at the Museum December 2006

Casino Royale November 2006

The Santa Clause 3 November 2006

Happy Feet November 2006

Charlotte’s Web December 2006

12

2007 Films

FILM RELEASE DATE North American Box Office of Prequel Films ($ millions)

1 2 3 4

Spiderman 3 May 4, 2007 $403 $374 - -

Shrek the Third May 18, 2007 $268 $441 - -

Pirates of the Caribbean: At Worlds End

May 25, 2007 $305 $421 - -

Ocean’s 13 June 8, 2007 $183 $126 - -

Fantastic Four: Rise of the Silver Surfer

June 15, 2007 $155 - - -

Harry Potter and the Order of Phoenix July 13, 2007 $318 $262 $250 $290

The Bourne Ultimatum August 3, 2007 $122 $176 - -

Rush Hour 3 August 10, 2007 $141 $226

13

CompanyCompanyoverviewoverview

14

Increasing Revenue per Guest

$6.65 $6.97 $7.28 $7.45 $7.73 $7.93

$2.64 $2.77 $2.89 $3.04$3.44 $3.74

$0.99$1.11

$0.74$0.67$0.53$0.54

2001 2002 2003 2004 2005 Q3 YTD2006

Box Office Concessions Other

$9.83$9.83 $10.27$10.27$11.23$11.23$10.84$10.84

$12.28$12.28 $12.51$12.51

Revenue per Guest Revenue per Guest

15

Synergies

1. Reducing overhead costs and adopting best practices– Consolidating two head offices– Staff reductions– Adopting best practices

Enhanced revenues Operating savings

2. Media sales efficiencies and effectiveness– Creation of Cineplex Media

3. Improved purchasing and merchandising opportunities– Supplier contracts– Merchandising strategies– Concession management

1. Reducing overhead costs and adopting best practices– Consolidating two head offices– Staff reductions– Adopting best practices

Enhanced revenues Operating savings

2. Media sales efficiencies and effectiveness– Creation of Cineplex Media

3. Improved purchasing and merchandising opportunities– Supplier contracts– Merchandising strategies– Concession management

Three Core Synergies:Three Core Synergies:

16

Prospectus Q1 CurrentProspectus Q1 Current

Acquisition SynergiesAnnualized Synergies: ($ millions)Annualized Synergies: ($ millions)

General and Administrative $15 $15 $15

Media 5 5 9

Operations - 5 6

Total $20 $25 $30

General and Administrative $15 $15 $15

Media 5 5 9

Operations - 5 6

Total $20 $25 $30

17

Looking Into the Future

Leverage Over 60 Million GuestsLeverage Over 60 Million Guests

Magazine

In-Theatre

Interactive Media-Web

Loyalty

Naming Rights

Magazine

In-Theatre

Interactive Media-Web

Loyalty

Naming Rights

18

Marketing

19

Growth

1. Other income initiatives

– Digital pre-show network

– Cineplex Media

– Alternative programming

2. Merchandising

3. Theatre openings

1. Other income initiatives

– Digital pre-show network

– Cineplex Media

– Alternative programming

2. Merchandising

3. Theatre openings

20

Digital Pre-Show Network Rollout Plan

Phase 1:April 1 Launch

Toronto Extended Market Area- 21 Locations; 215 Screens

Phase 2:Complete

Nationwide - Additional 800+ ScreensTOTAL 89 theatres & 1020 screens

21

Cineplex Media

Magazine publishing:– Famous Magazine, Famous Kids, Famous Quebec

In-theatre advertising:– Magazine, onscreen, posters, monitors, buildings,

naming rights

Magazine publishing:– Famous Magazine, Famous Kids, Famous Quebec

In-theatre advertising:– Magazine, onscreen, posters, monitors, buildings,

naming rights

22

Alternative Programming

23

Loyalty Strategic Alliance

Strategic Alliance

60 million Cineplex guests - 132 Cineplex locations

967 Scotiabank Canadian branches – 6 million Scotiabank Canadian customers

To create Canada’s first and foremost entertainment loyalty program

Includes media rights and naming rights for five Cineplex locations

24

Merchandising

Concession Per PatronConcession Per Patron

$2.86 $3.05 $3.17

2004 2005 Q3 YTD 2006

Core RBO

$3.04$3.04$3.44$3.44

$3.74$3.74

$0.20$0.39

$0.56

25

The Best Partners

26

New Theatres

9 Theatres 89 Screens9 Theatres 89 Screens

Brand Location Screens OpeningBrand Location Screens Opening

Galaxy Milton 8 June

Cineplex Odeon Brossard 16 June

Galaxy Brockville 6 July

Galaxy Saskatoon 12 September

Cineplex Odeon Oshawa 10 Q4

Galaxy Collingwood 7 2007

SilverCity Burloak 12 2007

SilverCity Hamilton 10 2007/2008

Galaxy Brantford 8 2008

27

FinancialFinancialhighlightshighlights

28

Annual Total Revenue($ millions)($ millions)

2005 excludes divestitures and includes FP for partial year2005 excludes divestitures and includes FP for partial year

2000 2001 2002 2003 2004 2005 Pro FormaLTM March

2005

$250.2$250.2$316.4$316.4 $330.0$330.0 $353.7$353.7

$490.3$490.3

$740.0$740.0

$197.5$197.5

678678 394394 740740775775

1,2751,275 1,2691,269

613613

Screen CountScreen Count

29

Annual Attendance

21.125.5

30.7 30.4 31.8

39.9

60.1

2000 2001 2002 2003 2004 2005 Pro FormaLTM March

2005

(millions)(millions)

2005 excludes divestitures and includes FP for partial year2005 excludes divestitures and includes FP for partial year

30

Annual EBITDA($ millions)($ millions)

$24.1

$41.7

$63.0$68.5

$74.5

$101.4

$77.6

12.2%

15.8%

21.1%20.4%

19.4%

16.7%

13.7%

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

2000 2001 2002 2003 2004 2005 Pro forma LTM

March 2005

without

synergies

5.0%

15.0%

EBITDA Margin

Adjusted EBITDA Margins – LTM March 2005:

CGX 20.2%

FP 9.0%

2005 EBITDA excludes divestitures and non-recurring/transaction related items and includes FP for partial year2005 EBITDA excludes divestitures and non-recurring/transaction related items and includes FP for partial year

31

Total Revenue – 9 months ended September 30($ millions)($ millions)

$297.1

$545.3$511.4

2005 2005 Pro Forma 2006

+6.6%

32

Attendance – 9 months ended September 30(millions)(millions)

25.1

41.8 43.1

2005 2005 Pro Forma 2006

+2.9%

33

Adjusted EBITDA – 9 months ended September 30($ millions)($ millions)

$33.3 $31.1

$81.2

2005 2005 Pro Forma 2006

Margin 11.2% 6.1% 14.9%Margin 11.2% 6.1% 14.9%

+161%

34

Distributable Income(per unit)(per unit)

Q3 2006 Q3 YTD 2006

LTM Sept 2006

Distributable Income per Unit

$0.46 $0.99 $1.45

Distributions Declared $0.29 $0.86 $1.15

Payout 63% 87% 79%

35

Credit Facilities

Development facility

– Capacity - $60 million

Working capital facility

– Capacity - $50 million

Term facility

– Capacity - $235 million

Development facility

– Capacity - $60 million

Working capital facility

– Capacity - $50 million

Term facility

– Capacity - $235 million

36

Questions