The Company 's business strategy is to continue to enhance its position as a leading exhibitor in the Canadian market by focusing on providing customers with a premium movie going experience. Key elements of the Company's strategy include:

Leveraging Market Specific Operating Focus
The Company utilizes its distinct theatre brands and market specific operating focus to serve the widest range of markets, with a premium movie going experience tailored to the specific needs of each location. Cineplex Entertainment is recognized for providing premium quality theatre experiences with theatres located across the country in major metropolitan markets, at prominent locations in high traffic areas as well as in smaller and mid-sized communities. The Company 's operating strategy includes a concentrated local marketing effort and community interaction in all markets.

Maximizing Operating Efficiencies
The Company 's prominent market position enables it to effectively manage film, concession and other theatre level costs, thereby maximizing operating efficiencies. The Company aggressively seeks to achieve incremental operating savings by, among other things, implementing best practises and negotiating improved supplier contracts.

Capitalizing on Ancillary Revenue Opportunities
The Company seeks to expand and further develop ancillary revenue opportunities, such as alternative programming including pay-per-view and hockey events, concert and cultural programming including The Metropolitan Opera and The National Ballet of Canada's The Nutcracker in addition to advertising, promotions, games and special events. These activities generate attractive margins and involve limited incremental operating expense. With more than 130 theatres located across the country, the Company has the ability to offer advertisers a larger number of screens. Management believes that the Company 's size and market position will allow it to exploit new ancillary revenue opportunities more quickly and profitably than most of its competitors.

Pursuing Selected Growth Opportunities
The Company seeks to enhance its competitive position by seeking selected complementary development opportunities; improving and refurbishing theatres and seeking selected acquisition opportunities. The Company only pursues expansion opportunities that meet certain strategic and financial return criteria. The Company has the financial strength, experience and flexibility to pursue attractive development and acquisition opportunities that are accretive to the Fund. The Company currently expects to open three new theatres each year, if opportunities are available.