FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * COTTER JAMES J   2. Issuer Name and Ticker or Trading Symbol READING INTERNATIONAL INC [RDI] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director __X__ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Chief Executive Officer (Last) (First) (Middle) 500 CITADEL DRIVE, SUITE 300 3. Date of Earliest Transaction (Month/Day/Year) 09/08/2006 (Street) COMMERCE, CA 90040 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Class B Voting Common Stock               1,023,888 I James J. Cotter Living Trust Class A Nonvoting Common Stock               2,411,273 I James J. Cotter Living Trust Class A Nonvoting Common Stock 09/08/2006   S   990,000 (1) D $ 5.44 (2) 10,000 (1) I Cotter Enterprises, LLC Class A Nonvoting Common Stock               1,565,782 I Hecco Ventures (3) Class A Nonvoting Common Stock               29,730 I Profit Sharing Plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
COTTER JAMES J 500 CITADEL DRIVE SUITE 300 COMMERCE, CA 90040	X	X	Chief Executive Officer

Signatures

/s/ James J. Cotter		09/08/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Represents the sale and issuance by Cotter Enterprises, LLC ("Cotter LLC") of a 99% non-voting interest in Cotter LLC to Cotter 2005 Children's Trust U/D/T ("Trust"), an irrevocable trust. Beneficiaries of the Trust are Mr. Cotter's three children: Ellen M. Cotter, Margaret Cotter, and James J. Cotter, Jr. Mr. Cotter, as the managing member of Cotter LLC, retains sole voting and investment power with respect to the 1,000,000 shares held by Cotter LLC, but his pecuniary interest is limited to the 10,000 shares shown based on his 1% interest in Cotter LLC.
(2)	Price reflects the price received for a 99% non-voting interest in Cotter Enterprises, LLC, and represents a discount from the value of the underlying securities reflecting the illiquid and non-controlling nature of the limited liability company membership interest involved. The price is subject to adjustment upward or downward based on a third party appraisal, which is currently in process.
(3)	Mr. Cotter is the general partner of a limited partnership which is, in turn, the general partner of Hecco Ventures, a California partnership. Mr. Cotter has voting power over the shares owned by Hecco Ventures. His interest varies from time to time depending upon the extent of his capital account in the limited partnership and of the limited partnership's capital account in Hecco Ventures.

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