PRESS RELEASE
Intertainment reports increased revenues in second quarter and returns to profitability
Cash position rises to 18.6 million Euro
Ismaning (near Munich), August 29th, 2002 - In the second quarter of 2002 (April - June)
Intertainment AG [plc], Ismaning nr. Munich, reported profits before taxes of 0.6 million
Euro. For the first six months of 2002 the Company reported a net loss of 2 million Euro
(2.1 million in the previous year). Revenues were distinctly higher compared to the first
quarter, at 9 million Euro reported for the second quarter. Total revenues for the first
six month of the year were 11.5 million Euro (14.7 million for the same period in the
previous year). The Company's cash position increased from 10.3 million Euro in the first
quarter to 18.6 million Euro in the second quarter. The increase in liquid assets is
primarily the result of the sales of film rights.
Despite the current difficult situation in the European media market, Intertainment
succeeded in selling three film packages in the first half of 2002. In May a film package
consisting of Free-TV rights was sold to England and an All-Rights-film-package was sold
to Eastern Europe. At the end of June the Tele München Group purchased a film package from
Intertainment for German-speaking Free- and Pay-TV distribution. Revenues from these sales
will also flow to Intertainment in the third quarter.
"Intertainment has been able to achieve significant success in the previous months, not
only in its operational business but also in its legal dispute against Franchise Pictures",
states Barry Baeres, Chief Executive Officer of Intertainment AG. The court case against
Franchise Pictures has been pending since December 2000. In the first half of 2002 Intertainment
achieved further successes before the Court. These include among other things the admission of
two RICO claims in May of this year. RICO, which was introduced in the mid 80's as an "Anti-Mafia
law", entitles victims of organized crime to claim triple compensation as well as reimbursement
of their attorneys' fees.
Intertainment is currently preparing further legal action against Comerica Bank and two completion
bond companies, WorldWide Film Completion and Film Finances for their alleged collaboration with
Franchise Pictures in fraud and RICO.