Ad-hoc Press Release from Intertainment AG

INTERTAINMENT wins trial against Franchise Pictures in the USA

The jury found Franchise Pictures liable for fraud as a result of inflated film budgets and awarded Intertainment damages in the amount of 77.1 million US dollars. The decision over punitive damages will be taken today, Thursday.

Ismaning, near Munich, June 17, 2004 – Media company Intertainment AG, Ismaning near Munich, has won the trial against US film producer Franchise Pictures. The Jury, consisting of nine people, unanimously found Franchise Pictures liable for fraud. CEO of Franchise Pictures, Elie Samaha, was found to be personally liable, and various other production companies of Franchise Pictures were also found to be liable. The Jury assessed the damages at 77.1 million US dollars. This amount complies with the amount calculated by an expert during the trial taking into account the 2001 settlement between Intertainment and HypoVereinsbank. All countersues by Franchise Pictures against Intertainment were dismissed.

Today, Thursday, the jury will decide on punitive damages. Punitive damages are additional punitive payments, which could be granted in addition to the damages already awarded. 

Intertainment will also be making a claim for payment of attorney’s fees by Franchise Pictures in the future.

The two Rico claims filed by Intertainment against Franchise Pictures and CEO Elie Samaha were dismissed.

Intertainment sued Franchise Pictures and Elie Samaha and various film production companies of Franchise Pictures in December 2000 on account of fraudulently inflated budgets. The trial was held before the Federal District Court in Santa Ana near Los Angeles.

In connection with the fraud, Intertainment is also in litigation against Comerica Bank and the insurance companies Film Finances and World Wide Film Completion. This litigation is still pending in Los Angeles.



Contact:

Intertainment AG, Dr. Marietta Birner, 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
 

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