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00001898 TO OUR SHAREHOLDERS & EMPLOYEES: The growth and earnings of your Company during the fiscal year ended August 31, 1967 were indeed gratifying. Gross income increased from $114,260,000 in the previous year to $136,765,000 this year, with net income rising from $5,819,000, or $2.94 per share, to $15,755,000, or $8.26 per share. Checks were mailed on November first to share- holders of record on October 18, 1967, covering Loew's first dividend of twenty-five cents per share for the quarter ended August 31, 1967. The Board has announced a split of 2'/s shares=for-one, subject to shareholder approval at our annual meeting on January 11, 1968. Acquisition last February of the Hotel Mark Hopkins in San Francisco brought Loew's hotel total to 12. The Mark Hopkins has been completely refurbished and refurnished from the bottom to "The Top of the Mark." In December, Loew's will open the luxurious 500-room Paradise Island Hotel and Villas in Nassau, Bahamas, and plans to construct a large luxury hotel in downtown Washington, D.C., on a site presently occupied by a Loew's theatre. Your Company is entering the European market with a deluxe 500-room hotel in London's Portman gquare, to be completed in 18 months. In addition, we are surveying opportunities in major cities, both here and abroad. Loew's Hotels, both resort and big-city, enjoy the highest average occupanc-ies and average rates in the industry. At the closing of the fiscal year, Loew's operated 71 thea= tres, including seven new theatres which opened during the past twelve months. We have just acquired 27 fine theatres in southern California and three in Phoenix, Arizona. Your Company plans to add ten new theatres, most of them in shopping center locations, during the current fiscal year. Attendance in Loew's Theatres contin= ues to increase. The land under Loew's Capitol Theatre on Broadway in New York City has been leased to Uris Building Corpora= tion, which will demolish the theatre and erect a 1,700,000 sq. ft. office building. Loew's ownership of the basic lease should enable us to realize between $16,000,000 and $17,000,000 on this property, if we elect to mortgage or dispose of it. Your Company has many theatres and commercial proper- ties in excellent locatipns, many of which are completely free and clear of mortgage debt. It is our intention to carry out a mortgaging program over the next few years. With the addition of mortgage money and cash flow to our present cash and security position, we project having available re- sources approximating $200,000,000 during the next three years. At the opportune time, we intend to use this fund for a major acquisition. Pending the fulfillment of this pro- gram, we are making investments in marketable securities. Our continuing growth in the hotel and movie industry, plus the strength of our position, stimulates our enthusi- asm about the future of Loew's. I express my gratitude for the constant vigor and support of our young and aggressive management group and all of your Company's loyal and dedicated employees. Laurence Alan Tisch Chairman of the Board November 8,1967 t

(above) Paradise Island Hotel and Villas is a unique and indescribably beautiful island resort. Situated on Paradise Island, it's just minutes by car, bicycle, or on foot, over a sparkling new bridge, from famous Bay Street on Nassau, Bahamas' mainland. (right) Architect's rendering for the new Loew's Hotel to rise on Portman Sguare in London's West End, your Company's first overseas venture. The 500 rooms and suites will be augmented by cumplete underground garage . facilities. 46t3IGO00 ,1.-:'.tr.Tr.~.rt~: v:~~'~' .~ ~ ~ ~M'tt•"wr~r~ ~itr6e~~rr~~.+~.. Z! tia

A REPORT ON LOEW'S HOTELS During the six years since Loew's first hotel (The Summit of New York) opened, the group has grown to 12 hotels and motels and has become one of the world's leading hotel chains. This record has been made possible by the high rate of "repeat" business in all phases of the operations: guest rooms, conventions, banquets and sales meetings. Comfort, service and convenience are prime considera- tions in the management policies of Loew's Hotels. The hotel division continues its planned growth pattern - - - in both the domestic and international fields. DOMESTIC: In February, 1967, Loew's Hotels acquired the famous Hotel Mark Fiopkins atop San Francisco's cele- brated Nob Hill. The 500 guest rooms and suites, meeting and banquet rooms, restaurants, intimate cocktail lounges and lobby have been completely refurbished and refur- nished. "The Top of the Mark" continues as a No. 1 attrac- tion for both residents and visitors. A new 500-room luxury hotel is planned for downtown Washington, D.C., on Pennsylvania Avenue. INTERNATIONAL: The new Paradise Island Hotel and Villas, in the Bahamas, will open in December. It will emerge as one of the loveliest of all tropical resorts. Under construction is a 500-room luxury hotel in London's fashionable West End, on Portman Square. The hotel will house a blending of traditional English com- forts and services along with the newest concepts in American hotel operations. It will be within walking dis- tance of the splendid Bond and Oxford Street shops, Mayfair, Hyde Park, and the Piccadilly theatre and night- life district. Loew's Hotels enjoy active and productive convention, banquet and travel-sales staffs. In addition, sales offices for room accommodations are maintained in 24 domestic and 8 foreign cities. Through each of these offices, imme- diate and confirmed reservations can be made for any Loew's Hotel. Loew's Theatres, nationally, serve as exten- sions of the field sales offices. eGRI0000 A completely new Hotel Mark Hopkins is now truly No. 1 on San Francisco's Nob Hill. ae N i " ZI I e i r r r /~ . a 1 1( ~ ~ . f W NEW YORK CITY AMERICANA 7th Avenue at 52nd Street (2,000 rooms) CITY SQUIRE MOTOR INN 7th Avenue at 51st Street (727 rooms) THE DRAKE Park Avenue at 56th Street (678 rooms) HOWARD JOHNSON'S MO-T-ORLODGE 8th Avenue at 51st Street (300 rooms) LOEW'S MIDTOWN MOTOR INN 8th Avenue at 48th Street (366 rooms) THE REGENCY Park Avanue at 61st Street (500 rooms) THE SUMMIT Lexington Avenue at 51st Street (800 rooms) THE WARWICK Avenue of the Americas at 54th Street (500 rooms) CHICAGO HOTELS AMBASSADOR 1300 N. State Parkway (650 rooms) SAN FRANCISCO HOTEL MARK HOPKINS Number One Nob Hill (500 rooms) FLORIDA MIAMI BEAGH AMERICANA OF BAL HARBOUR Oceanfront at 97th Street (720 rooms) PUERTO RICO AMERICANA OF SAN JUAN On the Ocean at Isla Verde (450 rooms) NASSAU IN THE BAHAMAS PARADISE ISLAND PARADISE ISLAND HOTEL & VILLAS (500 rooms) (Opens December 1, 1967) ENGLAND LONDON A NEW HOTEL On Portman Square (500 rooms) (Opens 1969)

A f: F P 0 f:T 0 r,\1 LO m/'S Since our last Annual Report, your Theatre Circuit has grown from 63 theatres to 101, a sixty percent increase in the number of units. Your Company has acquired 27 of the Statewide Circuit's fine theatres in Southern California, and 3 in Phoenix, Arizona. These include such important showplaces as: the Hollywood Paramount, the Beverly, Crest and Picfair in the Los Angeles area, Century 21 in Anaheim, the Titan in Fullerton, and newly completed theatres in San Bernardino and Bakersfield. In addition, the following new Loew's Theatres were completed and are now operating: Loew's Morse Road and Loew's Arlington in Columbus, Ohio; Loew's Lauderhill in Ft. Lauderdale, Florida; Loew's Westchester in Miami, Florida; Loew's Northglenn in Denver, Colorado; Loew's 7 & 27 Drive-In in Toronto; and Loew's at South Shore Mall in Bay Shore, L.I., N.Y. The Loew's image is being further enhanced by the exclusive sive showings of such important films as: "Dr. Dolittle" at Loew's State, New York, "Far From The Madding Crowd" at Loew's Capitol, New York; and the world premiere of the 70mm version of "Gone ne With The Wind" at Loew's Grand, Atlanta, Georgia. sGStoooo .t (above) Exterior of Loew's luxurious new 1, 200-seat NORTHGLENN Theatre in Denver, Colorado, at dusk. The unusual exterior design, which features an untler-lighwd shake-shinglc roof, creates a "floating" illusion. (below) Foyer of Loew's new NORTIIGLENN Theatre in Denver, Co/orado is a prototype of the design incorporated into many new Loew's Theatres. A giant wrap-around mural complements the foyer art gallery. Carpeting is both colorful and durabhe. I

(right) Loew's new Lauderhill Theatre in Ft. Lauderdale, Fla. is an integral part of the colorful Lauderhill Shopping Mall and attracts patronage from all of Broward and northern Dade Counties in Florida. (far right) A colorful landmark of Los Angeles' Beverly Hills- Wilshire area is The BEVERLY Theatre, home of long=run, reserved-seat attractions. ~~ '~ "•L T THE 6N0ME-MOBILE' oi..~ri LEGEND OF THE BOY ;,,ctAND THE EAGLE ~.,...... .~ ,.. (far Ieft) Unique among modern theatres is The TITAN, in Eullerton, Cal:, immediately adjacent to the campus of California State College. (left) The CAMELBACK Theatre is a handsome, first-run showplace in the prosperous Scottsdale area of Phoenix, Arizona. (far kJU Luxurious tropical planting embellishes the entrance to The BALDWIN Theatre in Los Angeles. (left) The CAPRI Theatre in West Covini; in California's San Gabriel Valley, is typical of Loew's new acquisitions in Southern California.

(above) Loew's first twin-theatre, with a combined seating capacity of 2,000, will be c-0nstructed in Natick, Massachusetts, adjacent to New England's most beautiful shopping mall. Acres of free parking will be provided. Led by Route 9 and the Massachusetts Turnpike, an excellent network of roads services the area. (far left) In 1939, a film destined to become an eternal motion picture classic, "Gone With the Wind," had its world premiere at Loew's Grand Theatre in Atlanta, Ga. - (left) This exciting social and civic event remained unequalled until October, 1967, when Loew's Grand was the scene of the 28th Anniversary Premiere of the film, recreated in 70mm and stereophonic sound.

00001902 ARIZONA PHOENIX Camelback Plaza Hayden Plaza East Hayden Plaza West Southern CALIFORNIA ANAHEIM Century 21 BAKERSFIELD Cinema Valley Plaza College (To be built) LOEW'S THEATRES IN THE U.S.A. AND CANADA BEVERLY HILLS COLORADO LOUISIANA NEW YORK CITY COLUMBUS Beverly DENVER NEW ORLEANS Ohio BUENA PARK Northglenn State Manhattan Arlington Buena Park Southglenn New Loew's Capitol Morse Road COVINA (To be built) (To be built) Delancey DAYTON Covina 83rd Street Loew's (Downtown) CHATSWORTH CONNECTICUT MARYLAND Orpheum Cinema Chatsworth NEW HAVEN OXON HILL 175th Street Ames FULLERTON Poli College Loew's Sheridan Titan WATERBURY MASSACHUSETTS State RHODE ISLAND GLENDALE Loew's Poli Tower East PROVIDENCE Roxy NATICK Loew's Victoria State GRANADA HILLS DELAWARE Granada Hills WILMINGTON (Opens 1968) Bronx TENNESSEE HOLLYWOOD Loew's Aldine MISSOURI American Century Paramount DISTRICT OF COLUMBIA ST. LOUIS State National Paradise MEMPHIS Palace INGLEWOOD WASHINGTON Mid•City Spooner NASHVILLE ' Imperial Em bassy Loew s Ritz Palace NEW JERSEY Brooklyn Melrose CAM DEN Alpine LOS ANGELES Baldwin FLORIDA Loew's Gates TEXAS FORT LAUDERDALE (To be built) Kings Leimert Picfair Lauderhill JERSEY CITY Metropolitan HOUSTON State OXNARD CORAL GABLES Loew's Oriental Magic Circle Riviera NEWARK Cinema Carriage Square MIAMI BEACH State Queens (To be built) PASADENA Sharpstown Drive-In 170th Street PARSIPPANY-TROY HILLS Bay Terrace Colorado MIAMI Loew's Triboro Crown Westchester WATCHUNG Valencia VIRGINIA REDONDO BEACH ST. PETERSBURG Loew's FAIRFAX CIRCLE South Bay Loew's (To be built) NEW ROCHELLE Loew's SAN BERNARDINO Loew's Cinema Inland Plaza GEORGIA NEW YORK NORFOLK Studio ATLANTA BAY SHORE, L.I. WHITE PLAINS State SANTA MONICA Grand Loew's Loew's State RICHMOND Elmiro BUFFALO Loew's STANTON INDIANA Shea's Buffalo OH IO Stanton EVANSVILLE Teck CLEVELAND CANADA WEST COVINA Majestic ROCHESTER Ohio TORONTO, ONTARIO Capri Victory Loew's State Yonge Street WESTWOOD INDIANAPOLIS SYRACUSE Loew's East U ptown Crest Loew's State Loew's West 7 & 27 Drive-In 7

ASSETS CONSOLIDATED BALANCE SIIEETS August 31, 1967 and 1966 LOEW'S THEATRES, INC. and Subsidiary Companies T.•0UIVaOU 1967 1966 CURRENT ASSETS: Cash ...................................................................................... $ 9,071,557 $ 3,974,299 Marketable securities and time deposits, at cost (less reserve in 1966, Note 1) (August 31, 1967 market approximately $31,250,000)........ 25,085,760 28,626,966 Accounts receivable ................................................................ 10,255,671 6,178,626 -- - Total current assets .............................................. 44,412,988 38,779,891 FIXED ASSETS (Note 2): Land ...................................................................................... 41,175,473 39,728,732 Buildings ................................................................................ 128,745,138 121,751,859 Equipment .............................................................................. 31,212,849 31,411,976 Leaseholds .... ......... ......... ......... ......... ......... ................. 8,140,697 6,879,973 209,274,157 199, 772, 540 Less, Allowance for depreciation and amortization ............................................................ 62,785,444 58,467,806 146,488,713 141,304,734 INVESTMENTS AND OTHER ASSETS: Land, mortgages and other investments, at cost ...................... 12,343,372 9,422,216 Miscellaneous assets .............................................................. 6,480,593 5,527,960 18,823,965 14,950,176 The accompanying notes are an Integral part of the financial statements. $209,725,666 $195,034,801 8

()UO01so.} LIABILITIES 1967 1966 CURRENT LIABILITIES: Accounts payable and accrued liabilities .................................. $ 13,500,727 $ 12,361,951 United States and Canadian income taxes ................................ 6,262,881 3,331,890 Long-term debt due within one year (Note 3) ....:...::....:.:.::...:.... 4,228,167 4,032,086 Total current liabilities .......................................... 23,991,775 19,725,927 LONG-TERM DEBT, less portion due within one year (Note 3) .......:...:.....::::::.:....:::.. 88,175,856 90,895,821 OTHER LIABILITIES AND DEFERRED INCOME: Provision for deferred income taxes ........................................ 2,890,000 4,130,000 Other noncurrent liabilities .:::::::::::.......................................... 1,800,616 1,669,271 Deferred income, principally unamortized investment tax credits .............................. .............. 1,182,783 968,092 5,873,399 6,767,363 MINORITY INTERESTS .................................................:......:.....:.:.:.:. 829,700 850,728 STOCKHOLDERS' EQUITY (Note 4): Common stock, authorized 3,000,000 shares, issued shares stated at par value of $1 each (Note 5)............ 2,697,389 2,697,389 Additional paid-in capital ::::::::................................................ 13,356,637 13,356,637 Earnings retained in the business ................................... :..... ..: 89,423,245 73,668,221 105,477,271 89,722,247 Less, Treasury stock (790,111 shares and 714,911 shares, respectively), at cost (Note 6) .................... 14,622,335 12,927,285 90,854,936 76,794,962 $209,725,666 $195,034,801 The accompanying notes are an integral part of the financial statements. 9

YEARS ENDED AUCiUST 31 i , CONSOLIDATED STATEMENTS OF INCOME 1967 1966 INCOME: Theatre and hotel operations .................................................. $120,320,256 $108,043,187 Security transactions, rent and other income .......................... 16,444,404 6,217,102 136,764,660 114,260,289 EXPENSES: Operating .............................................................................. 90,475,959 85,427,684 General and administrative .................................................... 6,286,466 4,635,169 Depreciation and amortization ................................................ 7,366,645 8,093,994 Interest on debt ...................................................................,.. 6,048,729 5,600,709 Other ...................................................................................... 1,341,837 994,094 111,519,636 104,751,650 Income before taxes .............................................. 25,245,024 9,508,639 United States and Canadian income taxes ................................ 9,490,000 3,690,000 Net income .......................................................... $ 15,755,024 $ 5,818,639 Net income per share ............................................ $8.26 $2.94 CONSOLIDATED STATEMENTS OF EARNINGS RETAINED IN THE BUSINESS 10 S06TUO0O EARNINGS RETAINED IN THE BUSINESS, at beginning of year ................................................................ NET INCOME ......................................... ......................................... $ 73,668,221 $ 67,849,582 15,755,024 5,818,639 EARNINGS RETAINED IN THE BUSINESS, at end of year .......................................................................... $ 89,423,245 $ 73,668,221 The accompanying notes are an Integral part of the financial statements.