PRESS RELEASE
Intertainment AG backing strong performers
Participation in SightSound opens up another field of activity
Financial year 2000 concluded with revenue growth of 206 %
Ismaning nr. Munich, Germany, 4. May 2001 - The company Intertainment AG, based in Ismaning nr.
Munich, is moving ahead with confidence. 'Regardless of the legal dispute with Franchise, the
company is continuing its core business with Arnold Kopelson. And in addition, we made
adjustments early enough within the company to enable us to profit from new sales methods',
explains Rüdiger Baeres, Chaiman of Intertainment AG, at the press conference in Munich to
release the company's balance sheet.
Intertainment brought an action against the US company Franchise Pictures for fraudulently
inflated budgets at the end of the year 2000. In February 2001, they extended the action to
include Imperial Bank, whose management staff also run a production company, because they knew
of the budget fraud and even covered it up.
A decision in both actions is still pending. 'We expect a decision in our favour', says Baeres.
The company, active in the film licensing business as well as merchandising, is ready for
anything.
New strong performers - including the first joint project with Hollywood star producer Arnold
Kopelson - have already been selected. The filming of an action thriller with the working title
'A Window to Atlantis' is due to start as soon as the strike by American actors is over. 'We
plan to have the film in the cinemas in 2002 ', says Baeres. At the beginning of the year
Intertainment AG was also able to sign a contract with Paramount Pictures - one of the leading
Hollywood studios - according to which Paramount is co-producer to Intertainment for the
Kopelson films.
Another pillar of the media company is the merchandising sector. 'With Rudolph - the red-nosed
reindeer - this sector has developed into an interesting field', declares Baeres. With more
than 90 products, Rudolph is now an integral part of the Christmas business. The sales video
itself was a success once again and beat all other films into lower positions. And not just in
Germany - this was the case in Austria and Switzerland too.
The participation (of just under 25 per cent) in SightSound Technologies Inc. opened up a new
area of activity for Intertainment. The American company holds patents to download music and
films from the Internet via telecommunication lines of all kinds, such as telephone, cable or
satellite. In addition SightSound has developed a method of protecting films to prevent
unsanctioned distribution or unauthorised access 'In the medium term, the trading of films via
the Internet will replace traditional video shops and pay TV' predicts Baeres.
In the financial year 2000 Intertainment has continued on a course for growth. Revenues rose by
206 per cent from DM 56.1 million or 28.7 million Euro in 1999 to DM 171.7 million/87.8 million
Euro in the year 2000. EBIT trade rose from DM 25.6 million/13.1 million Euro to DM 31.6
million/16.2 million Euro. The results from ordinary activities went down to DM 20.9 million/10.7
million Euro. In the previous year these were DM 27.4 million/14 million Euro. The annual
surplus dropped from DM 13.1 million/6.7 million Euro to DM 10.9 million /5.6 million Euro.
The clearly under-developed progression of EBIT in relation to revenues and the development of
both the results of ordinary activities and the annual surplus are due to the DM 20.0 million/10.6
million Euro provisioning for risk in connection with the legal action against Franchise
Pictures and the Imperial Bank. The profits per share for the group are DM1.02/0.52 Euro as
compared to DM 1.38 DM (0.71 Euro) in the previous year. The liquid funds of Intertainment as
at 31.12.2000 were DM 142.5 million 72.9 million Euro.
Contact:
Intertainment Aktiengesellschaft
Osterfeldstraße 84
85737 Ismaning
Phone : 0 89 / 216 99 - 0
Fax : 0 89 / 216 99 - 11
Internet: www.intertainment.de
E-mail : investor@intertainment.de