Note 5 – Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to Reading International, Inc. common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income (loss) attributable to Reading International, Inc. common shareholders by the weighted average number of common shares outstanding during the period after giving effect to all potentially dilutive common shares that would have been outstanding if the dilutive common shares had been issued. Stock options and non-vested stock awards give rise to potentially dilutive common shares. In accordance with FASB ASC 260-10 - Earnings Per Share, these shares are included in the diluted earnings per share calculation under the treasury stock method. As noted in the table below, due to the small difference between the basic and diluted weighted average common shares, the basic and the diluted earnings (loss) per share are the same for the 2011 Quarter. The following is a calculation of earnings (loss) per share (dollars in thousands, except share data):

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
Income (loss) from continuing operations	$	15,778	$	(13,706	)	$	13,257	$	(13,390	)
Income (loss) from discontinued operations		1,654		(8	)		1,695		29
Net income (loss) attributable to Reading International, Inc. common shareholders	$	17,432	$	(13,714	)	$	14,952	$	(13,361	)

Basic and diluted earnings (loss) per share attributable to Reading International, Inc. common share holders:
Earnings (loss) from continuing operations	$	0.69	$	(0.60	)	$	0.58	$	(0.59	)
Earnings from discontinued operations		0.07		--			0.07		--
Basic and diluted earnings (loss) per share attributable to Reading International, Inc. common share holders:	$	0.76	$	(0.60	)	$	0.65	$	(0.59	)
Weighted average common stock – basic		22,789,718		22,797,534			22,749,202		22,754,599
Weighted average common stock – dilutive		22,960,713		22,797,534			22,920,198		22,754,599

For the three and six months ended June 30, 2011, the weighted average common stock – diluted included 170,995 of stock compensation and in-the-money incremental stock options. For the three and six months ended June 30, 2010, we recorded losses from continuing operations; therefore, we excluded 25,058 of in-the-money incremental stock options from the computation of diluted loss per share because they were anti-dilutive in those periods. In addition, 714,417 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2011, and 624,692 of out-of-the-money stock options were excluded from the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2010.