Palace Cinemas Central Europe begins operations at the multiplex located in Mammut mall in Budapest, Hungary on 3 November 2005. The acquisition of the previously-owned Budapest Film multiplex will result in Palace Cinemas becoming the leading cinema network in Budapest. Palace Cinemas Hungary also includes sites at West End, Campona and MOMPark in Budapest for a total of 4 sites and 47 screens.

Mr. V.J Maury, General Director of Palace Cinemas, says," We will build upon Palace Mammut's great tradition established by this first rate multiplex. We hope to enhance its reputation and performance even further." Andrea Lovasz who is the Hungary Country Manager for Palace Cinemas adds, "We look forward to bringing the Palace Cinemas 'People, Entertainment & Fun' mission to Mammut."

Palace Cinemas was established in 1999 with the financial backing of ARGUS Capital Partners ("ARGUS"), a private equity fund focused on Central Europe with offices in Prague, Budapest and Warsaw. (http://arguscapitalgroup.com) In addition to its operations in Hungary, Palace Cinemas operates the number one cinema network in Czech Republic and Slovakia with a total of 7 sites and 65 screens. Palace Cinemas has the top performing sites in each of these countries at Palace Novy Smichov in Prague and Palace Aupark in Bratislava. Palace Cinemas maintains the only two digital projectors based on Texas Instruments Digital Light Projector (DLP) CinemaTM technology and Avica servers sponsored by Pepsi in Budapest and Prague.