United Cinemas to Become Subsidiary of Sumitomo Corporation.

Tokyo, Japan - Sep 21, 2004 (PRN): Sumitomo Corporation (TSE: 8053) and Kadokawa Pictures, Inc., will convert United Cinemas Co., Ltd. into a subsidiary company by acquiring 50% of United Cinemas stock owned by majority shareholder United Cinemas International Multiplex BV.

Sumitomo is to take 80% of the stake, and Kadokawa 20%. Sumitomo's past efforts in the motion picture business have encompassed active business development at every stage, from production, distribution, box office management and development of movie channels at Sumitomo and affiliated companies, including Asmik Ace Entertainment, Inc. and Jupiter Entertainment Co., Ltd. (operating under the name MoviePlus), to video-on-demand (Jupiter VOD Co., Ltd.), a segment expected to enjoy further growth in the future.

Sumitomo will use the conversion of United Cinemas into a subsidiary as a springboard to pursue strategic expansion of its cinema complex operations in the box office management sector, and further strengthen its operating base, development capabilities and profitability in its existing motion picture business.

Established in October 1999 as a joint venture, United Cinemas is owned 50% by UCI, 40% by Sumitomo Corporation and 10% by Kadokawa Holdings (formerly Kadokawa Shoten).

Since opening its first cineplex entertainment site in Kishiwada, Osaka in October 1999, United Cinemas has developed a network of eight cineplex sites, including the new Toshimaen cineplex in Tokyo which opened in July 2004, and currently operates a system of 11 cineplex sites following an acquisition in 2003 of three sites UCI had been managing independently.

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