FOR IMMEDIATE RELEASE
Contact: G. Gail Edwards or Sharon F. Merrill
Chief Financial Officer President
GC Companies, Inc. Sharon Merrill
617/277-4320 Associates, Inc.
617/542-5300
GC COMPANIES, INC. PURCHASES THEATRE ASSETS IN MEXICO AND
ARGENTINA
GENERAL CINEMA THEATRES EXPANDS INTO LATIN AMERICA
Chestnut Hill, MA, September 29, 1997 -- GC Companies,
Inc. (NYSE: GCX), one of the nation's leading motion
picture exhibitors and a manager of a pool of the
Company's investment capital, announced today that it has
acquired certain international theatre assets of United
Artists Theatre Circuit, Inc. in Mexico and Argentina for
a total purchase price of approximately $36 million. As
a result of this agreement, GC Companies, Inc. has
acquired existing theatre units and theatres currently
under development, as well as an infrastructure to
support future growth in each of these countries.
Stated Robert A. Smith, president and chief
operating officer of GC Companies, Inc., "This
acquisition is the first step in our international growth
strategy. It provides us with the foundation for
expansion throughout Latin America, which we view as an
attractive and relatively untapped marketplace for the
exhibition industry. We are very excited about the
potential of the existing locations and the future
development possibilities in the Argentine and Mexican
markets, and additional Latin American countries."
"Our international efforts will be consistent with
our domestic growth strategy to build high-impact
profitable theatres in urban and suburban locations. We
are aggressively undertaking this initiative with the
belief that international expansion will be one of the
key drivers to the long-term growth and profitability of
GC Companies. The Company intends to commit substantial
resources to its international development as there is
significant investment potential in this area over the
next several years," concluded Smith.
As a result of this acquisition, GC Companies, Inc.
will add in total seven new locations (five currently
open and operating and two under construction) with 79
screens. The 34 screens at three locations in Buenos
Aires are owned 100 percent, while the 45 screens at four
locations in Mexico are operated by a company which is
owned jointly with a 50 percent partner, Fondo Optima
S.A. de C.V., a Mexican company.
The Company wishes to take advantage of the 'safe
harbor' provisions of the Private Securities Litigation
Reform Act of 1995 with respect to statements that may be
deemed to be forward-looking statements under the Act.
Such forward-looking statements may include, but are not
limited to, statements regarding the Company's long-term
theatre strategy. The Company cautions that numerous
factors could cause actual results to differ materially
from any forward-looking statements made by the Company.
Please refer to the section on forward-looking statements
included in the Company's 1996 annual report incorporated
by reference in the Company's Form 10-K filed January 29,
1997 with the Securities and Exchange Commission.
GC Companies, Inc. operates one of the nation's
leading motion picture exhibition circuits with 1,168
screens at 185 locations in 25 states, and manages a pool
of the Company's capital to be used for investments
purposes.
APPROVED:/s/ G. Gail Edwards
By: G. Gail Edwards