Ad-hoc Press Release from Intertainment AG
Franchise Pictures and subsidiary companies file for bankruptcy
Ismaning, near Munich, 20 August 2004 - Intertainment AG, Ismaning (Munich), has been informed, shortly after the
presentation of the final judgment in the fraud case brought against US film producer Franchise Pictures and others,
that Franchise Pictures and nearly all subsidiary companies convicted in the lawsuit have filed for bankruptcy. As a
result of this predictable step, the companies have placed themselves under the protection of American insolvency law.
This means that Intertainment will assert its claims against Franchise Pictures and the subsidiary companies resulting
from the lawsuit as part of the insolvency proceedings.
It is possible that Elie Samaha, the CEO of Franchise Pictures, will also file for personal bankruptcy. Samaha was -
like Franchise Pictures and the subsidiary companies - found guilty of defrauding Intertainment. Following the judgment,
Intertainment is entitled to receive 121.7 million dollars, with all the convicted parties being jointly liable for 92.7
million dollars.
Regardless of this latest development, Intertainment will continue with its preparations for the arbitral proceedings
scheduled for January 2005 against the other parties involved in the Franchise Pictures fraud. These include Comerica
Bank, and the insurance companies Film Finances and others. As part of the proceedings, Intertainment is claiming - as
in the case of the Franchise lawsuit - damages in excess of 100 million dollars.
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