Cedar Fair, L.P. (FUN)

Investing Activities

Investing activities consist principally of acquisitions and capital investments we make in our parks and resort properties. During 2008, cash used for investing activities totaled $77.1 million, compared to $78.5 million in 2007 and $1,312.9 million in 2006. Reflected in the 2008 total is $6.4 million received from CBS Corporation as final settlement of a purchase-price working capital adjustment related to the acquisition of PPI. The significant increase in cash for investing activities in 2006 was attributable to the acquisition of PPI.

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Historically, we have been able to improve our revenues and profitability by continuing to make substantial investments in our park and resort facilities. This has enabled us to maintain or increase attendance levels, as well as generate increases in guest per capita spending and revenues from guest accommodations. For the 2009 operating season, we are investing approximately $62 million in capital improvements at our 17 properties, with the highlight of the 2009 program being the addition of a $22 million world-class roller coaster at Kings Island. The 2009 program will also include the addition of new roller coasters to the Carowinds and World’s of Fun parks, and a new 350,000-gallon wave pool at Valleyfair.

In addition to great new thrill rides, we are also investing in other capital improvements across our parks, including additional rides and attractions, restaurant renovations, new games, and other general improvements.

Investing Activities

Investing activities consist principally of acquisitions and capital investments we make in our parks and resort properties. During 2007, cash used for investing activities totaled $78.5 million, compared to $1,312.9 million in 2006 and $75.7 million in 2005. The significant increase in cash for investing activities in 2006 was attributable to the acquisition of PPI.

Historically, we have been able to improve our revenues and profitability by continuing to make substantial investments in our park and resort facilities. This has enabled us to maintain or increase attendance levels, as well as generate increases in guest per capita spending and revenues from guest accommodations, while carefully controlling operating and administrative expenses.

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For the 2008 operating season, we are investing $88 million in capital improvements at our 18 properties, including the addition of world-class roller coasters at Canada’s Wonderland, Kings Dominion, Dorney Park, Knott’s Berry Farm, and Michigan’s Adventure. The 2008 program will also include the introduction of new water attractions at Carowinds and a new spinning ride at Great America.

In addition to adding great new thrill rides, we are also investing in other capital improvements across our parks, including additional rides and attractions, restaurant renovations, new games and other general improvements.

We believe the combination of a strong capital program, our second full year of operating the newly acquired parks, and our continued focus on guest service, will improve attendance, guest per capita spending and operating results company wide in 2008. However, stable population trends in the parks’ market areas and uncontrollable factors, such as weather, the economy, and competition for leisure time and spending, preclude us from anticipating significant long-term increases in attendance.

Investing Activities