<SUBMISSION>
<ACCESSION-NUMBER>0000891092-04-002430
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20040510
<ITEMS>12
<ITEMS>7
<FILING-DATE>20040512
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>READING INTERNATIONAL INC
<CIK>0000716634
<ASSIGNED-SIC>6513
<IRS-NUMBER>953885184
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-08625
<FILM-NUMBER>04797408
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>550 SOUTH HOPE STREET
<STREET2>SUITE 1825
<CITY>LOS ANGELES
<STATE>CA
<ZIP>90071
<PHONE>213 235 2240
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>550 SOUTH HOPE STREET
<STREET2>SUITE 1825
<CITY>LOS ANGELES
<STATE>CA
<ZIP>90071
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CITADEL HOLDING CORP
<DATE-CHANGED>19941216
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>e17838_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html>
<head>
<title> </title>
</head>
<body>

<p><table width=600><tr><td  align=center><font size=2><B>UNITED STATES<BR>SECURITIES AND
EXCHANGE COMMISSION<BR>  Washington, DC 20549</B></font></td></tr></table>
<table width=600><tr><td><hr size=1 noshade align=CENTER width=150></td></tr></table>
<p><table width=600><tr><td  align=center><font size=2><B>FORM 8-K</B></font></td></tr></table>

<p><table width=600><tr><td  align=center><font size=2>CURRENT REPORT</font></td></tr></table>

<p><table width=600><tr><td  align=center><FONT SIZE="2">Pursuant to Section 13 OR 15(d) of
the Securities Exchange Act of 1934<BR>
      Date of report (Date of earliest event reported):<B> May 10, 2004</B></FONT></td>
  </tr></table>

<p><table width=600><tr><td  align=center><FONT SIZE="2"><B>Reading International, Inc.</B><BR>
(Exact Name of Registrant as Specified in Charter)</FONT></td></tr></table>

<p>
<table width=600>
  <tr>
    <td  align=center width="206"><FONT SIZE="2"><B>Nevada </B><BR>
      (State or Other Jurisdiction<BR>
      of Incorporation)</FONT> </td>
    <td  align=center width="191"><font size="2"><b>1-8625</b><br>
      (Commission<br>
      File Number)</font> </td>
    <td  align=center width="187"><font size="2"><b>95-3885184</b><br>
      (IRS Employer<br>
      Identification No.)</font> </td>
  </tr>
</table>


<p>
<p>
<p>
<p>
<table width=600>
  <tr>
    <td  align=center width="449"><font size="2"><b>550 S. Hope Street, Suite
      1825, Los Angeles, California</b><br>
      (Address of Principal Executive Offices)</font> </td>
    <td  align=center width="139"><FONT SIZE="2"><B>90071</B><BR>
      (Zip Code)</FONT> </td>
  </tr>
</table>


<p><table width=600><tr><td  align=center><FONT SIZE="2">Registrant&#146;s telephone number,
including area code <B>(213) 235-2240</B></FONT></td></tr></table>

<p><table width=600><tr>
    <td  align=center><FONT SIZE="2"><B>N/A </B><BR>
      </FONT>
      <hr noshade size="1">
      <FONT SIZE="2">(Former Name or Former Address, if Changed Since Last Report)</FONT></td>
  </tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;




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<p><table width=600><tr>
    <td><font size=2><B>Item 7. &nbsp;Financial Statements and Exhibits.</B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The following
exhibits are included with this report:</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1. Reading
International, Inc. earnings press release dated May 10,  2004.</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2><B>Item 12. &nbsp;Regulation FD Disclosure.</B></font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 10, 2004
Reading International, Inc. issued a press release  announcing its consolidated financial
results for the first quarter ended March  31, 2004. A copy of the press release is
furnished as Exhibit 99.1 to this  current report and is incorporated herein by
reference. The press release is  being furnished pursuant to Item 12 of Form 8-K as
directed by the Commission in  Release No. 34-47583.</font></td></tr></table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;




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<p><table width=600><tr><td  align=center><font size=2>SIGNATURES</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the
requirements of the Securities Exchange Act of 1934,  the registrant has duly caused this
report to be signed on its behalf by the  undersigned hereunto duly authorized.</font></td></tr></table>

<p>
<table width=600>
  <tr>
    <td width=340><font size=2> </font></td>
    <td width=248><font size=2>READING INTERNATIONAL, INC.<br>
      </font></td>
  </tr>
  <tr>
    <td width=340><font size=2>Date: May 10, 2004</font></td>
    <td width=248><font size=2>By:&nbsp; /s/ Andrzej Matyczynski<br>
      </font>
      <hr noshade size="1" align="right" width="93%">
      <font size=2>Name: Andrzej Matyczynski<br>
      Title: &nbsp;&nbsp;Chief Financial Officer</font></td>
  </tr>
</table>

<p>&nbsp;
<table width=600><tr><td width=60 align=left><font size=1>&nbsp;</font></td><td width=480 align=center><font size="2">
</font></td><td width=60 align=right><font size="1">&nbsp;</font></td></tr></table><p>&nbsp;<hr size=5 noshade width=600 align=LEFT><p>&nbsp;

</body>
</html>








</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>e17838ex99_1.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
<head>
<title> </title>
</head>
<body>






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<p><table width=600><tr><td align=right><font size=2><B>Exhibit 99.1</B></font></td></tr></table>

<p><table width=600><tr>
    <td  align=center><font size=2>Reading International Announces Record First
      Quarter Results</font></td>
  </tr></table>


<br>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>EBITDA(1)
was up 131.0% to $2.7 million for the 2004 Quarter versus  2003 Quarter</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>Ninth
consecutive quarter of positive EBITDA(1)</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LOS ANGELES, May
10 /PRNewswire-FirstCall/ &#151; Reading International, Inc.  (Amex: RDI, RDI.B)
announced today positive results for the first quarter ended  March 31, 2004 and posted
its ninth consecutive quarter of positive EBITDA(1).</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Logo:
http://www.newscom.com/cgi-bin/prnh/20030403/LATH058LOGO )</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Quarter Highlights</font></td>
  </tr></table>

<br>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>Revenue
at $23.3 million, increased 6.2% compared to Q1 2003</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>Ninth
consecutive quarter of positive EBITDA(1), up 131.0% compared to  Q1 2003</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>Total
revenue per screen at $102,237, increased 8.0% compared to  Q1 2003</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>Average
attendance per screen at 11,211, decreased 7.2% compared to  Q1 2003</font></td></tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Quarter 2004 Discussion</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue rose 6.3%
to $23.3 million from $22.0 million in 2003 primarily  driven by the positive effect of
currency. The quarter&#146;s strong box office  performers were &#147;Passion of the
Christ,&#148; &#147;Mystic River,&#148; &#147;Fog of War&#148; and &#147;Cold  Mountain.&#148;</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue per screen
of $102,237 increased from $94,663 in the 2003-Quarter,  driven by currency and strong
per-screen attendance increases in the Australian  and New Zealand cinemas. In the US,
overall attendances were down, due to  generally lackluster product and our inability to
show several first-line movies  in the US as a result of our on-going antitrust dispute
with several major  distributors.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In Puerto Rico,
attendance remained relatively constant, despite the closure  of one cinema following the
2003-Quarter.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We achieved our
ninth consecutive quarter of positive EBITDA(1), since the  close of our consolidation
transaction at the end of 2001. At $2.7 million,  EBITDA(1) was significantly higher than
the $1.2 million generated in the  2003-Quarter.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a percent of
revenue, cinema/live theater/real estate operating expense  remained relatively constant
at 78.6% in the 2004 Quarter compared to 77.7% in  the 2003 Quarter. This expense growth
containment was achieved as a result of  increased focus on individual cinema expense
levels and despite adverse currency  pressure.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
amortization expense grew $0.5 million or 21.8%, from $2.5  million to $3.0 million for
the 2004-Quarter. This increase was primarily due to  the effect of currency fluctuation,
and due to the depreciation of assets  acquired following the 2003 Quarter.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and
administrative expense remained relatively constant, increasing  by $0.02 million. We
experienced increases in general and administrative expense  mainly due to initial costs
associated with our implementation of the  Sarbanes-Oxley Act, ongoing litigation costs
associated with our antitrust  litigation as previously discussed and certain travel
related expenses  associated with the expansion of our businesses. The increase in
general and  administrative expense was offset by the effects of our transaction with a
third  party to sell certain leasehold interest rights in our Sutton Cinema property
which took place in the fourth quarter of 2004 and resulted in a net reduction  to our
rent expense.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The other
significant drivers for the quarter, included in &#147;other (income)&#148; were:</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>a
$0.7 million in recognized currency translation gains; and</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>a
$0.3 million tax provision recorded in the 2004-Quarter compared to a  $0.2 million tax
benefit in the 2003-Quarter that reflected a tax refund  in that period.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the
above, we reported a $1.4 million net loss for the 2004  Quarter compared to a $1.9
million loss in the 2003-Quarter. Once again, the  continued strength of our EBITDA(1) at
$2.7 million was the principal  achievement for the quarter.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets at
March 31, 2004 were $221.9 million compared to $222.9  million at December 31, 2003. The
currency exchange rates for Australia and New  Zealand as of March 31, 2004 were $0.7620
and $0.6650, respectively, and as of  December 31, 2003, these rates were $0.7520 and
$0.6557, respectively. Currency  effect was not significant in the 2004-Quarter. Cash and
cash equivalents were  down approximately $3.5 million at $18.2 million compared to $21.7
million at  December 31, 2003. The decrease in cash was driven primarily by increases in
our  prepaid assets, representing primarily workers&#146; compensation and general
liability insurances purchased in the 2004-Quarter and lower than anticipated  revenue
receipts in the US. Working capital, which in our industry normally runs  negative, grew
to $1.1 million as compared to $0.8 million at December 31, 2003.</font></td></tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The resulting
stockholders&#146; equity was $107.9 million at March 31, 2004.</font></td></tr></table>


<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Event</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to the
end of the 2004 Quarter, we entered into a letter of  intent with a possible purchaser of
our cinemas in Puerto Rico. The sale of  these cinemas remains subject to due diligence
and the negotiation and execution  of definitive transactional documents.</font></td></tr></table>


<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Russell 3000&#174; Index</font></td>
  </tr></table>

<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 1, 2003 Reading International,
      Inc. joined the Russell 3000&#174; Index. Annual reconstitution of the Russell
      indexes captures the 3,000 largest U.S. stocks as of the end of May, ranking
      them by total market capitalization to create the Russell 3000&#174;. The
      largest 1,000 companies in the ranking comprise the Russell 1000&#174; Index
      while the remaining 2,000 companies become the widely used Russell 2000&#174;
      Index. Based on these criteria, Reading International now forms part of
      the Russell 2000&#174; Index.</font></td>
  </tr></table>


<p><table width=600><tr>
    <td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;About Reading International,
      Inc.</font></td>
  </tr></table>

<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reading
International is in the business of owning and operating cinemas and  live theaters and
developing, owning and operating real estate assets. Our  business consists primarily of:</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>the
development, ownership and operation of cinemas in the United  States, Australia, New
Zealand, and Puerto Rico;</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>the
ownership and operation of &#147;Off Broadway&#148; style live theaters in  Manhattan and
Chicago; and</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>the
development, ownership and operation of commercial real estate in  Australia, New Zealand
and the United States, including entertainment-  themed retail centers (&#147;ETRC&#148;)
in Australia and New Zealand.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reading manages
its worldwide cinema business under various different  brands:</font></td></tr></table>


<br>
<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>in
the United States, under the Reading, Angelika Film Center  (go to:
http://angelikafilmcenter.com/) and City Cinemas brands;</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>in
Australia, under the Reading brand  (go to:  http://www.readingcinemas.com.au/);</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>in
New Zealand, under the Reading  (go to:  http://courtenaycentral.co.nz/index.php) and
Berkeley Cinemas  (go to:  http://www.berkeleycinemas.co.nz/) brands; and</font></td></tr></table>

<table width=600>
  <tr>
    <td width=3%></td>
    <td width=1% valign=top><font size=3>&#149;</font></td>
    <td width=3%></td>
    <td width=93%><font size=2>in
Puerto Rico, under the CineVista brand.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements in this
release about the Company&#146;s future financial  performance, customer relationships,
initiatives to develop new ETRC&#146;s and  cinemas and the market potential for
entertainment services are forward-looking  statements and are subject to risks and
uncertainties that could cause actual  results to differ materially from expectations.
Factors that could impact  Reading International&#146;s future results include changes in
demand and market  growth rates, the availability of film and live theater product, the
effect of  competition, pricing pressures, exchange rate fluctuations and the viability
and  market acceptance of new developments. Although the Company believes the
expectations reflected in such forward-looking statements are based upon  reasonable
assumptions, it can give no assurance that its expectations will be  attained. The
Company undertakes no obligation to update or revise any  forward-looking statements,
whether as a result of new information, future  events or otherwise. More information
about Reading International&#146;s risks is  available in the Company&#146;s annual
report on Form 10-K and other filings made  from time to time with the Securities and
Exchange Commission.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For further
information, please contact: Andrzej Matyczynski, Chief  Financial Officer of Reading
International, Inc., +1-213-235-2240.</font></td></tr></table>


<p><table width=600><tr><td><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company
defines EBITDA as net loss before net interest expense,  income tax benefit,
depreciation, and amortization. EBITDA is presented solely  as a supplemental disclosure
as management believes it to be a relevant and  useful measure to compare operating
results among its properties and  competitors, as well as a measurement tool for
evaluation of operating  personnel. EBITDA is not a measure of financial performance
under the  promulgations of generally accepted accounting principles (&#147;GAAP&#148;).
EBITDA  should not be considered in isolation from, or as a substitute for, net loss,
operating loss or cash flows from operations determined in accordance with GAAP.
Finally, EBITDA is not calculated in the same manner by all companies and  accordingly,
may not be an appropriate measure for comparing performance amongst  different companies.
See the &#147;Supplemental Data&#148; table attached for a  reconciliation of EBITDA to
net loss.</font></td></tr></table>



<p><table width=600><tr><td  align=center><font size=2>Reading International, Inc. and
Subsidiaries  <BR>Supplemental Data <BR>
      <u>Reconciliation of EBITDA to Net Loss (Unaudited) </u><BR>
(dollars in thousands, except per share amounts)</font></td></tr></table>




<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
  <TR VALIGN="BOTTOM">
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="399"><font size="2"><u>Statements of Operations</u></font></TD>
    <TD ALIGN="LEFT" WIDTH="42">&nbsp;</TD>
    <TD ALIGN="center" colspan="3"><font size="2"><br>
      Three Months Ended <br>
      <u>March 31, </u></font> </TD>
    <TD ALIGN="LEFT" WIDTH="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="399">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="42">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="50"><font size="2">2004</font>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="center" WIDTH="50">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="48"><font size="2">2003</font>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" WIDTH="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="399"><font size="2">Revenue</font></TD>
    <TD ALIGN="LEFT" WIDTH="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="50"><font size="2">$&nbsp;23,338</font></TD>
    <TD ALIGN="LEFT" WIDTH="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="48"><font size="2">$&nbsp;21,970</font></TD>
    <TD ALIGN="LEFT" WIDTH="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">Operating expense</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">&nbsp;&nbsp;&nbsp;Cinema/live
      theater/real estate</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">18,353</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">17,062</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">&nbsp;&nbsp;&nbsp;Depreciation
      and amortization</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">3,041</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">2,497</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">&nbsp;&nbsp;&nbsp;General and
      administrative</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">3,509</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">3,488</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399">&nbsp;</TD>
    <TD ALIGN="LEFT" width="42">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="50">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" width="50">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="48">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
      loss</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">(1,565</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">(1,077</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399">&nbsp;</TD>
    <TD ALIGN="LEFT" width="42">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="50">&nbsp;</TD>
    <TD ALIGN="LEFT" width="50">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="48">&nbsp;</TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">Interest expense, net</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">693</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">780</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">Other (income) expense</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">(1,191</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">132</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">Income tax provision (benefit)</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">301</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">(171</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">Minority interest (income) expense</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">(15</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">127</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399">&nbsp;</TD>
    <TD ALIGN="LEFT" width="42">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="50">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" width="50">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="48">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">&nbsp;&nbsp;&nbsp;Net loss</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">$(1,353</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">$(1,945</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399">&nbsp;</TD>
    <TD ALIGN="LEFT" width="42">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="50">
      <hr size="2" noshade>
    </TD>
    <TD ALIGN="LEFT" width="50">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="48">
      <hr size="2" noshade>
    </TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">Basic and diluted loss per share</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">$&nbsp;&nbsp;(0.06</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">$&nbsp;&nbsp;(0.09</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2">)</font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="399">&nbsp;</td>
    <td align="LEFT" width="42">&nbsp;</td>
    <td align="RIGHT" width="50">
      <hr size="2" noshade>
    </td>
    <td align="LEFT" width="50">&nbsp;</td>
    <td align="RIGHT" width="48">
      <hr size="2" noshade>
    </td>
    <td align="LEFT" width="11">&nbsp;</td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">EBITDA*</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="50"><font size="2">2,682</font></TD>
    <TD ALIGN="LEFT" width="50"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="48"><font size="2">1,161</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="399">&nbsp;</td>
    <td align="LEFT" width="42">&nbsp;</td>
    <td align="RIGHT" width="50">
      <hr size="2" noshade>
    </td>
    <td align="LEFT" width="50">&nbsp;</td>
    <td align="RIGHT" width="48">
      <hr size="2" noshade>
    </td>
    <td align="LEFT" width="11">&nbsp;</td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399"><font size="2">EBITDA change</font></TD>
    <TD ALIGN="LEFT" width="42"><font size="2"></font></TD>
    <TD ALIGN="center" width="148" colspan="3"><font size="2"></font><font size="2">+1521</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="399">&nbsp;</TD>
    <TD ALIGN="LEFT" width="42">&nbsp;</TD>
    <TD ALIGN="center" width="148" colspan="3">
      <hr size="2" noshade>
    </TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
</TABLE>

<br>
<table width=600>
  <tr>
    <td width=4% align=left valign=top><font size="2">* </font></td>
    <td width=2%>&nbsp;</td>
    <td width=94%><font size="2">EBITDA presented above is net loss adjusted for
      interest expense (net of interest income), income tax benefit, and depreciation
      and amortization expense. Reconciliation of EBITDA to the net loss is presented
      below:</font></td>
  </tr>
</table>



<br>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
  <TR VALIGN="BOTTOM">
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="423">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="38">&nbsp;</TD>
    <TD ALIGN="center" colspan="3"><font size="2">Three Months Ended <br>
      <u>March 31, </u></font></TD>
    <TD ALIGN="LEFT" WIDTH="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="423">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="38">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="42"><font size="2">2004</font>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="center" WIDTH="39">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="47"><font size="2">2003</font>
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" WIDTH="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="423"><font size="2">Net loss</font></TD>
    <TD ALIGN="LEFT" WIDTH="38"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="42"><font size="2">$(1,353</font></TD>
    <TD ALIGN="LEFT" WIDTH="39"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" WIDTH="47"><font size="2">$(1,945</font></TD>
    <TD ALIGN="LEFT" WIDTH="11"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="423"><font size="2">&nbsp;&nbsp;&nbsp;Less: Interest
      expense, net</font></TD>
    <TD ALIGN="LEFT" width="38"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="42"><font size="2">693</font></TD>
    <TD ALIGN="LEFT" width="39"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="47"><font size="2">780</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="423"><font size="2">&nbsp;&nbsp;&nbsp;Add: Income
      tax provision (benefit)</font></TD>
    <TD ALIGN="LEFT" width="38"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="42"><font size="2">301</font></TD>
    <TD ALIGN="LEFT" width="39"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="47"><font size="2">(171</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="423"><font size="2">&nbsp;&nbsp;&nbsp;Less: Depreciation
      and amortization</font></TD>
    <TD ALIGN="LEFT" width="38"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="42"><font size="2">3,041</font></TD>
    <TD ALIGN="LEFT" width="39"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="47"><font size="2">2,497</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="423">&nbsp;</TD>
    <TD ALIGN="LEFT" width="38">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="42">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" width="39">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="47">
      <hr size="1" noshade>
    </TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="423"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA</font></TD>
    <TD ALIGN="LEFT" width="38"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="42"><font size="2">$&nbsp;2,682</font></TD>
    <TD ALIGN="LEFT" width="39"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="47"><font size="2">$&nbsp;1,161</font></TD>
    <TD ALIGN="LEFT" width="11"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="423">&nbsp;</TD>
    <TD ALIGN="LEFT" width="38">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="42">
      <hr size="2" noshade>
    </TD>
    <TD ALIGN="LEFT" width="39">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="47">
      <hr size="2" noshade>
    </TD>
    <TD ALIGN="LEFT" width="11">&nbsp;</TD>
  </TR>
</TABLE>


<p><table width=600><tr><td><font size=2>Reading International, Inc. and Subsidiaries <BR>
      <u>Consolidated Statements of Operations (Unaudited) </u><BR>
      (dollars in thousands, except per
share amounts)</font></td></tr></table>


<br>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
  <TR VALIGN="BOTTOM">
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="345">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="51">&nbsp;</TD>
    <TD ALIGN="center" colspan="3"><font size="2">Three Months Ended <br>
      <u>March 31,</u> </font></TD>
    <TD ALIGN="LEFT" WIDTH="18">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="345">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="51">&nbsp;&nbsp;</TD>
    <TD ALIGN="center" WIDTH="68"><font size="2">2004</font></TD>
    <TD ALIGN="center" WIDTH="45">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="73"><font size="2">2003</font></TD>
    <TD ALIGN="LEFT" WIDTH="18">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="600" colspan="6">
      <hr size="2" noshade>
    </TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="345"><font size="2">Revenue</font></TD>
    <TD ALIGN="LEFT" WIDTH="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="68"><font size="2"></font></TD>
    <TD ALIGN="LEFT" WIDTH="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="73"><font size="2"></font></TD>
    <TD ALIGN="LEFT" WIDTH="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Cinema</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,676</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,035</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Live Theater</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">825</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">1,078</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Rental/real
      estate</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">2,837</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">1,857</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345">&nbsp;</TD>
    <TD ALIGN="LEFT" width="51">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">23,338</font></TD>
    <TD ALIGN="LEFT" width="45">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">21,970</font></TD>
    <TD ALIGN="LEFT" width="18">&nbsp;</TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Operating expense</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Cinema</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">16,559</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">15,325</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Live Theater</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">527</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">613</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Rental/real
      estate</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">1,267</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">1,124</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Depreciation
      and amortization</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">3,041</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">2,497</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;General and
      administrative</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">3,509</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">3,488</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2"></font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">24,903</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">23,047</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Operating loss</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">(1,565</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">(1,077</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345">&nbsp;</TD>
    <TD ALIGN="LEFT" width="51">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Non-operating (income) expense</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Interest income</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">(336</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">(139</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Interest expense</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">1,029</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">919</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Other (income)
      expense</font></TD>
    <TD ALIGN="LEFT" width="51">&nbsp;</TD>
    <td align="RIGHT" width="68"><font size="2">(1,191</font></td>
    <td align="LEFT" width="45"><font size="2">)</font></td>
    <td align="RIGHT" width="73"><font size="2">132</font></td>
    <td align="LEFT" width="18"><font size="2"></font></td>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Loss before income taxes and</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;minority interest</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">(1,067</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">(1,989</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
      tax provision (benefit)</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">301</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">(171</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Loss before minority interest</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">(1,368</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">(1,818</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;Minority interest
      (income) expense</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">(15</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">127</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Net loss</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,353</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,945</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="2" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Basic loss per share</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.06</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.09</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Weighted average number of shares</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;outstanding
      &#151; basic</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">21,899,290</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">21,821,142</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="2" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Diluted loss per share</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.06</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.09</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">Weighted average number of shares</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="345"><font size="2">&nbsp;&nbsp;&nbsp;outstanding
      &#151; diluted</font></TD>
    <TD ALIGN="LEFT" width="51"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="68"><font size="2">21,899,290</font></TD>
    <TD ALIGN="LEFT" width="45"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="73"><font size="2">21,821,142</font></TD>
    <TD ALIGN="LEFT" width="18"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="2" noshade>
    </td>
  </tr>
</TABLE>


<p><table width=600><tr><td><font size=2>Reading International, Inc. and Subsidiaries <BR>
Consolidated Balance Sheets  <BR>(dollars in thousands)</font></td></tr></table>


<font size="2"><br>
</font>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
  <TR VALIGN="BOTTOM">
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
    <TH COLSPAN="2"></TH>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="413">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="17">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="75"><font size="2">(Unaudited) <br>
      March 31,</font></TD>
    <TD ALIGN="center" WIDTH="8">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="80"><font size="2"> December 31,</font></TD>
    <TD ALIGN="LEFT" WIDTH="7">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="413">&nbsp;</TD>
    <TD ALIGN="LEFT" WIDTH="17">&nbsp;&nbsp;</TD>
    <TD ALIGN="center" WIDTH="75"><font size="2">2004</font></TD>
    <TD ALIGN="center" WIDTH="8">&nbsp;</TD>
    <TD ALIGN="center" WIDTH="80"><font size="2">2003</font></TD>
    <TD ALIGN="LEFT" WIDTH="7">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="600" colspan="6">
      <hr size="2" noshade>
    </TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" WIDTH="413"><font size="2">ASSETS</font></TD>
    <TD ALIGN="LEFT" WIDTH="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="75"><font size="2"></font></TD>
    <TD ALIGN="LEFT" WIDTH="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" WIDTH="80"><font size="2"></font></TD>
    <TD ALIGN="LEFT" WIDTH="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Cash and cash
      equivalents</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">$&nbsp;&nbsp;&nbsp;18,221</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">$&nbsp;&nbsp;&nbsp;21,735</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Investment in
      marketable securities</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">119</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">85</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Receivables</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">6,179</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">4,787</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Inventory</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">534</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">518</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Restricted cash</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">462</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">456</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Prepaid and
      other current assets</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">4,517</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">2,612</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      current assets</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">30,032</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">30,193</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413">&nbsp;</TD>
    <TD ALIGN="LEFT" width="17">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="75">&nbsp;</TD>
    <TD ALIGN="LEFT" width="8">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="80">&nbsp;</TD>
    <TD ALIGN="LEFT" width="7">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Rental property,
      net</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">7,787</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">7,916</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Property and
      equipment, net</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">118,580</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">119,439</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Property held
      for development</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">26,747</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">26,396</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Investment in
      joint ventures</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">4,633</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">4,482</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Note Receivable</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">13,000</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">13,000</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Capitalized
      leasing costs, net</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">378</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">411</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Intangible assets,
      net</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">11,968</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">12,248</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Goodwill, net</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">5,094</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">5,090</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Other noncurrent
      assets</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">3,651</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">3,691</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="2" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      assets</font></TD>
    <TD ALIGN="LEFT" width="17">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">$&nbsp;221,870</font></TD>
    <TD ALIGN="LEFT" width="8">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">$&nbsp;222,866</font></TD>
    <TD ALIGN="LEFT" width="7">&nbsp;</TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="2" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">LIABILITIES AND STOCKHOLDERS&#146;
      EQUITY</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413">&nbsp;</TD>
    <TD ALIGN="LEFT" width="17">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">Liabilities</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Accounts payable</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">$&nbsp;&nbsp;&nbsp;13,938</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">$&nbsp;&nbsp;&nbsp;13,222</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Film rent payable</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">3,640</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">4,489</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Notes payable
      &#151; current portion</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">2,130</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">1,930</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Income taxes
      payable</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">6,913</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">7,046</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Deferred revenue</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">1,389</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">1,561</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Other current
      liabilities</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">905</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">1,148</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      current liabilities</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">28,915</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">29,396</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;Notes payable &#151; long-term
      portion</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">69,087</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">69,215</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;Deferred real estate revenue</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">1,381</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">1,143</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;Other noncurrent liabilities</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">10,274</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">10,133</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total
      liabilities</font></TD>
    <TD ALIGN="LEFT" width="17">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">109,657</font></TD>
    <TD ALIGN="LEFT" width="8">&nbsp;</TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">109,887</font></TD>
    <TD ALIGN="LEFT" width="7">&nbsp;</TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;Commitments
      and contingencies</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;Minority interest in consolidated
      affiliates</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">4,283</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">4,488</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413">&nbsp;</TD>
    <TD ALIGN="LEFT" width="17">&nbsp;</TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;Stockholders&#146; equity</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Class
      A Nonvoting Common Stock, par value $0.01, 100,000,000 shares</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized,
      33,858,299 issued and 19,916,876 shares outstanding at </font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413">&nbsp;&nbsp;<font size="2">&nbsp;&nbsp;&nbsp;March
      31, 2004 and December 31, 2003, respectively</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">199</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">199</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Class
      B Voting Common Stock, par value &nbsp;$0.01, 20,000,000 shares</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp; &nbsp;&nbsp;authorized,
      1,982,414 shares issued and outstanding</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at
      March 31, 2004 and December 31, 2003, respectively</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">20</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">20</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Nonvoting
      Preferred Stock, par value</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$0.01,
      12,000 shares authorized</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">&#151;</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">&#151;</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Additional
      paid-in capital</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">123,516</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">123,516</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
      deficit</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">(47,793</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2">)</font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">(46,440</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2">)</font></TD>
  </TR>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
      other comprehensive income</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">31,988</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">31,196</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      stockholders&#146; equity</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">107,930</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">108,491</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="1" noshade>
    </td>
  </tr>
  <TR VALIGN="BOTTOM">
    <TD ALIGN="LEFT" width="413"><font size="2">&nbsp;Total liabilities and stockholders&#146;
      equity</font></TD>
    <TD ALIGN="LEFT" width="17"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="75"><font size="2">$&nbsp;221,870</font></TD>
    <TD ALIGN="LEFT" width="8"><font size="2"></font></TD>
    <TD ALIGN="RIGHT" width="80"><font size="2">$&nbsp;222,866</font></TD>
    <TD ALIGN="LEFT" width="7"><font size="2"></font></TD>
  </TR>
  <tr valign="BOTTOM">
    <td align="LEFT" width="600" colspan="6">
      <hr size="2" noshade>
    </td>
  </tr>
</TABLE>




<p><table width=600><tr>
    <td><font size=2>SOURCE Reading International, Inc. <BR>
      -0- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;05/10/2004
      <BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/CONTACT: Andrzej Matyczynski, Chief Financial
      Officer of Reading <br>
      International, Inc., +1-213-235-2240/ <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/First Call Analyst: / <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/FCMN Contact: lwardcline@riinc.biz /<BR>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/Photo: http://www.newscom.com/cgi-bin/prnh/20030403/LATH058LOGO
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AP Archive:
      http://photoarchive.ap.org <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRN Photo Desk,
      photodesk@prnewswire.com/ <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /Web site: http://www.readingcinemas.com.au/
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /Web site: http://courtenaycentral.co.nz/index.php/
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /Web site: http://www.berkeleycinemas.co.nz/
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /Web site: http://www.angelikafilmcenter.com/
      <br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (RDI RDIA RDIB)</font></td>
  </tr></table>

<p>
<table width=600>
  <tr align="left" valign="top">
    <td width="49"><font size=2>CO: <br>
      ST: <br>
      IN: <br>
      SU: </font></td>
    <td width="539"><font size=2> Reading International, Inc. <BR>
      California <BR>
      FIN ENT FLM RLT <BR>
      ERN</font></td>
  </tr>
</table>



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