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Ultimate Rollercoaster

November 13, 2002

Six Flags, Inc. Reports Results For Third Quarter

Oklahoma City, OK -- Six Flags, Inc. (the "Company") (NYSE:PKS - News) announced today its results of operations for the nine months and quarter ended September 30, 2002.

For the first nine months of 2002, revenues were $955.2 million, compared to $963.4 million for the comparable period of 2001, representing a 0.9% decrease, driven by a 7.1% increase in total per capita spending at the consolidated parks, offset by a 7.4% decline in attendance at those parks.

Operating costs and expenses, including depreciation and other non-cash charges, were $710.2 million in the 2002 nine-month period, as compared to $742.5 million in 2001, reflecting the elimination of goodwill amortization in the 2002 period under new accounting rules. Approximately $42.3 million of goodwill amortization was expensed in the nine months ended September 30, 2001. Total operating costs and expenses in the 2001 period absent goodwill amortization would have been $700.2 million, or $10.0 million less than in the 2002 period.

Excluding depreciation and amortization and non-cash compensation expense, cash operating costs and expenses were $589.8 million in 2002 and $588.6 million in 2001. All of the increase is attributable to the inclusion for the full 2002 period of the two parks acquired during the first nine months of 2001 and to the inclusion of the results of our New Orleans park since its acquisition on August 23, 2002. One of the acquired parks, the former Sea World of Ohio, now operates together with the previously owned adjacent Six Flags facility. Assuming the acquired park in Montreal and the combined Ohio facility had been owned for the full 2001 period and excluding New Orleans from 2002, cash operating costs and expenses in the 2002 period decreased $4.6 million (0.7%) as compared to the pro forma prior-year period.

EBITDA from consolidated operations was $365.4 million as compared to $374.8 million in the prior-year period.(1) Adjusted EBITDA for the 2002 nine-month period, including the Company's share of EBITDA from the parks accounted for by the equity method, was $395.9 million as compared to $418.3 million in the prior-year period.(2) Assuming the acquired park in Montreal and the combined Ohio facility had been owned for the full 2001 period and excluding New Orleans from 2002, EBITDA and Adjusted EBITDA for the 2002 period were approximately $4.1 million (1.1%) and $17.1 million (4.1%) lower, respectively, than in the prior-year pro forma period.

During the nine-month period, we recognized a $61.1 million loss from the goodwill impairment at our European operations as a cumulative effect of a change in accounting principle under the provisions of SFAS No. 142 "Goodwill and Intangible Assets." Income before extraordinary loss and this cumulative effect of change in accounting principle was $44.1 million in the 2002 period versus income of $39.2 million in 2001, reflecting the elimination of goodwill amortization in 2002. There was an extraordinary loss net of tax benefit of $18.5 million in 2002, and of $8.5 million in 2001. Net loss applicable to common stock was $52.0 million in the 2002 period, as compared to income of $9.6 million in 2001, reflecting the impact of the impairment recognition in 2002.

Three Month Results

Revenues for the 2002 third quarter were $558.1 million, compared to $571.8 million for the comparable quarter of 2001, representing a 2.4% decrease. The 2002 performance reflects a 5.1% increase in total per capita spending at the consolidated parks, offset by a drop in attendance at those parks of 7.2% compared to the 2001 quarter.

Operating costs and expenses, including depreciation and other non-cash charges, were $280.3 million in the 2002 quarter and $300.4 million in the year ago period, reflecting the elimination of goodwill amortization in the quarter under new accounting rules. Approximately $14.1 million of goodwill amortization was expensed in the third quarter of 2001. Total operating costs and expenses in the 2001 quarter absent goodwill amortization would have been $286.3 million, or $6.0 million more than in 2002.

Excluding depreciation and amortization and non-cash compensation expense, cash operating costs and expenses were $239.1 million in the third quarter of 2002, compared to $248.3 million in the prior-year quarter, a decrease of 3.7%. Excluding the New Orleans park from 2002, cash operating costs and expenses in the 2002 period decreased 4.3% as compared to the prior-year period. EBITDA from consolidated operations was $319.0 million as compared to $323.5 million in the 2001 quarter. Adjusted EBITDA for the third quarter, including the Company's share of the EBITDA from parks accounted for by the equity method, was $345.6 million as compared to $356.1 million for the third quarter of 2001. Net income was $139.7 million in 2002 versus $148.0 million in the year ago quarter, reflecting the impact of the lower revenues offset by the elimination of goodwill amortization in 2002. Net income applicable to common stock was $134.2 million in the 2002 quarter, as compared to net income applicable to common stock of $142.5 million in the 2001 period.

Kieran E. Burke, Chairman and Chief Executive Officer, stated, "The results for the three and nine month periods reflect the performance issues we have previously discussed, which affected us in three or four markets primarily in July. We experienced an improved performance trend through the balance of the third quarter, including at our New Jersey, Cleveland and Dallas parks. This improved performance in the latter months offset a significant portion of our earlier difficulties. As a result, revenues for the quarter at our consolidated operations trailed the prior year by 2.4%. For the nine month period, revenues were less than 1.0% behind the prior year at the consolidated parks, 2% systemwide. We experienced strong per capita spending gains throughout the year at our parks, with total revenue per guest up 7.1% for the nine months, reflecting solid gains in both admission per capita and in in-park spending. These gains bode well for our ability to achieve future increases in years to come."

"We also continued to carefully control expenses, with cash operating costs and expenses on a same park basis lower in the third quarter and year to date than last year."

"All of our parks have now concluded their operating seasons, with the exception of various weekend and holiday operations in four markets. Our October operations were not as strong as we had expected they would be, reflecting the impact of difficult weather in several markets, which constrained what would otherwise have been strong growth over last year. As a result, we now expect full year operations, excluding New Orleans, to generate consolidated revenues of approximately $1.04 billion, approximately 1% less than last year, EBITDA from consolidated operations of approximately $350 million and Adjusted EBITDA of approximately $385 million."

"As to next year, we are planning to implement a capital investment program entailing expenditures of approximately $125 million, including major attractions at each of our four largest parks and an array of additions in other markets. We have ample available liquidity and committed financing lines to pursue that plan, which should generate meaningfully improved performance and substantial free cash flow."

FASB Statement 142

"We have concluded the second step of the goodwill impairment test mandated by Statement 142 of the Financial Accounting Standards Board. We have concluded that we do not have any goodwill impairment in our North American business, but do have an impairment in our European operations, primarily attributable to the November 1999 transaction involving the acquisition of Movie World Germany. The impairment is $61.1 million, representing all of the goodwill attributable to our European business. We have recognized the impairment in the results for the nine months ended September 30, 2002 as a cumulative effect of an accounting change, consistent with the provisions of Statement 142. The loss is to be retroactively recognized in the first quarter of this year."

Six Flags, Inc. is the world's largest regional theme park company, with thirty-nine parks in markets throughout North America and Europe.