Dear Shareholders and Friends:

The year 2010 posed a series of challenges to the way in which our company interacts in the markets in which we participate, the manner in which we create and propose “out of home” entertainment concepts to our clients and sponsors, and how we ensure and create sustainable value for everyone who is a part of this unique and professional chain in the industry to which we are committed.

Without a doubt, the direction of the business has been maintained by applying the same principles that we have practiced since the beginning of the 1990s, with a unique vision, competitive quality products and services, and teams of professionals and specialists who have allowed us to stay at the forefront and as leaders in this industry. Just as in prior years, we have been affected by different factors in the economic, social, political and cultural life of the global environment.

However, CIE and its associated companies have shown that the business decisions they have made and the strategic actions related to those decisions have been correct and have borne fruit, reflecting the scope of the established goals and the way in which we compete in a more competitive business environment. As in recent years, we strive to find various areas of opportunity throughout the organization to implement and decisively conduct sustainable operating and production efficiencies. Proof of this is our greater agility in decision-making, work teams that communicate better and that have guidance to achieve objectives, the redefinition of functions and responsibilities at all levels, and reestablishing the business philosophy and the values that we practice for a new environment.

Thus, we outline growing participation in new market niches, and in those in which we have great opportunities to explore as a company group specialized in the management and production of large-scale shows. An example of the foregoing is CIE’s participation in the national celebration of the Bicentennial of Mexico’s Independence and the 100th Anniversary of the Mexican Revolution; and promotion in Mexico and South America of new talent and content whose strategies and dynamism is based on promotion both of their concerts and the digital world that the new generations of young consumers are demanding. There is also growing demand for a variety of events in medium-sized and small cities in the country that were not served previously, and whose growth potential is very relevant. On the other hand, access to new content in the gaming industry with state-of-the-art technology and key locations for our gaming halls have been of particular importance in the development of this growing business, attracting a larger number of visitors year after year, and 2010 was no exception.

The financial front was another fundamental piece in our activities in 2010, as we met our commitments with the market and our creditors. We continued the process of divesting assets, we concluded the sale of our Mexican parks at the end of 2009, and at the start of 2010 we sold the radio stations that we had in Argentina. The divestment process has allowed the Group to concentrate on the three business divisions with the greatest growth potential. At the close of 2010, we reported a lower level of indebtedness and better management of our working capital.

The outcome of 2010 is positive, and the trends for 2011 are encouraging. We recognize the dedication of our employees, and we appreciate the trust that creditors, consumers, sponsors, authorities and all those who in one way or another contributed to continuing our work, have shown in the Group.

Alejandro Soberón Kuri
Chairman of the Board of Directors and Chief Executive Officer