Press Release
Intertainment AG applies for extension for submission of annual
financial statements
Ismaning near Munich, 27 March 2001 - Yesterday Intertainment AG of Ismaning near Munich
applied for an extension of the deadline for the submission of its annual financial statements
and management report in accordance with clause 7.2.2 (2) sentence 4 of the regulations for
Germany's Neuer Markt, requesting another four weeks.
The ongoing litigation between Intertainment and Franchise Pictures is making it more difficult
to complete the annual financial statements. On 21 December 2000 Intertainment Licensing GmbH,
a 100% subsidiary of Intertainment AG, took legal action against Franchise Pictures LLC,
Franchise Pictures Inc., their Chairman and CEO Elie Samaha, their President and COO Andrew
Stevens, various production companies of the Franchise group and other parties on grounds of a
fraudulently excessive film budget amounting to at least USD 75m. The case was brought before
the US district court (Federal Court) in Los Angeles, USA. Franchise then took cross-action
against the Intertainment Group with counterclaims amounting to USD 50 m. The writ of summons
for this cross action of Franchise Pictures against Intertainment AG has not yet been served so
that the auditor is not yet able to adequately evaluate its impact on the company. Under these
circumstances it is not possible for the auditor to issue an attestation at the present point
of time.
The outcome of this litigation could have a considerable impact on Intertainment AG's turnover
and profit for the past financial year and for the current year.
This also affects ongoing business relations with holders of sub-licences. Intertainment is
currently conducting intensive negotiations with its contractual partners.
The application for an extension of the deadline means that the dates for the general meeting
and the balance sheet press conference for analysts will also be postponed. The new dates will
be published at the earliest possible opportunity.
Contact:
Intertainment Aktiengesellschaft
Osterfeldstraße 84
85737 Ismaning
Telephone: 0 89 / 216 99 - 0
Fax: 0 89 / 216 99 - 11
Internet: www.intertainment.de
E-mail: investor@intertainment.de