Ad-hoc Press Release from Intertainment AG
Final judgment issued in Franchise lawsuit
Judge awards Intertainment additional 15.6 million dollars / Total claim resulting from fraud lawsuit increases to 121.7
million dollars
Ismaning, near Munich, 19 August 2004 - The competent judge in the fraud case brought against US film producer Franchise
Pictures and others by Intertainment AG, Ismaning (Munich), has now issued her final judgment. In total Intertainment
has been awarded 121.7 million dollars as a result of the lawsuit. This amount is made up of damages of 77.1 million
dollars, punitive damages of 29 million dollars, and interest on the incurred damages of 15.6 million dollars.
Prejudgement interest was awarded to Intertainment by the judge as part of her decision on the last remaining pending
motions relating to the lawsuit. A jury in Santa Ana (Los Angeles) had already in June find all the parties liable sued
by Intertainment in the lawsuit, and awarded the company compensatory damages and punitive damages.
As part of the judgment now issued, the judge also made it clear that all the defendants in the lawsuit are jointly and
severally liable for the 77.1 million dollar damages amount. This joint and several liability also applies to the 15.6
million dollars of interest now awarded. The total amount for which they are jointly and severally liable is therefore
92.7 million dollars. The convicted parties include, in addition to Franchise Pictures and numerous subsidiary companies,
Elie Samaha, the CEO of Franchise Pictures. Samaha is therefore held personally liable for both the compensatory damages
and the prejudgment interest. A detailed breakdown of the punitive damages was given by the jury in its June decision.
Of the punitive damages, Elie Samaha will have to pay 4 million dollars, Franchise Pictures, 1 million dollars, and
Franchise's 16 subsidiary companies, 1.5 million dollars each.
Intertainment's motion with the court to directly award , on the basis of a constructive trust, the rights and proceeds
relating to the contested films for which a deposit had been paid and which were never received for commercial
exploitation by Intertainment, was not granted by the judge.
The judge also rejected Franchise Pictures' claims for an accounting on additional license fees resulting from the
exploitation of films received prior to the lawsuit and in the meantime commercially exploited. These films include, for
example, "The Whole Nine Yards" and "Art of War". She declared the reason for her decision to be,
among other things, Franchise's fraudulent conduct.
Contact:
Intertainment AG, Investor Relations, Osterfeldstrasse 84, D-85737 Ismaning, Germany
Tel.: + 49 (0)89 21699-0, Fax: + 49 (0)89 21699-11
Internet: www.intertainment.de, E-mail: investor@intertainment.de