Company Overview

 2008 Annual Report

National CineMedia, LLC (NCM LLC) operates the largest digital in-theatre network in North America through long-term agreements with its founding members, AMC Entertainment Inc., Cinemark Holdings Inc. (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC), the three largest theatre operators in the U.S., and through multi-year agreements with several other theatre operators. NCM LLC produces and distributes its FirstLook pre feature program; cinema, lobby and online advertising products; comprehensive meeting and event services and other entertainment programming content. NCM LLC's national network includes approximately 16,800 screens of which approximately 15,600 are part of the company's Digital Content Network (DCN). NCM LLC's network covers 171 Designated Market Areas® (49 of the top 50). During 2008, approximately 660 million patrons attended movies shown in theatres currently included in the network (excluding Consolidated Theatres). National CineMedia, Inc. (NASDAQ: NCMI) owns a 41.5% interest in and is the managing member of NCM LLC.

We currently derive revenue principally from the following activities:

• Advertising: We develop, produce, sell and distribute a branded, pre-feature entertainment and advertising program called "FirstLook," along with an advertising program for our lobby entertainment network and various marketing and promotional products in theatre lobbies;
• CineMeetings: We facilitate live and pre-recorded networked and single-site meetings and corporate events in the movie theatres throughout our network; and
• Fathom (Digital Programming Events): We distribute live and pre-recorded concerts, sporting events and other entertainment programming content to theatres across our digital network.