Ad-hoc Press Release from Intertainment AG


Jury grants additional punitive damages amounting to 29 million dollars

Intertainment has therefore been awarded a total of 106.1 million dollars in the fraud proceedings against Franchise Pictures


Ismaning, near Munich, June 19, 2004 – In the fraud trial brought by media company Intertainment AG, Ismaning near Munich, against US film producer Franchise Pictures, and others, the trial jury awarded Intertainment punitive damages amounting to 29 million dollars on Friday. On Wednesday of this week, the jury had already found all 18 parties sued by Intertainment liable for fraud and set damages at 77.1 million dollars. This means that the jury has awarded Intertainment a total of 106.1 million dollars in the trial.

The jury allocated the 29 million dollars of punitive damages as follows: 4 million dollars are attributed to Elie Samaha, the CEO of Franchise Pictures, one million dollars to Franchise Pictures and 1.5 million dollars were apportioned to each of the 16 production companies of Franchise Pictures.

Punitive damages are additional payments based on the reprehensible nature of the offence. They are in addition to the actual damages and are intended to have a punitive effect and act as a deterrent.

The trial for damages against Franchise Pictures, Elie Samaha and the production companies was heard before the Federal District Court in Santa Ana near Los Angeles. Intertainment had also sued Comerica Bank and the insurance companies Film Finances and World Wide Film Completion. They had confirmed and signed off inflated budgets to Intertainment. The lawsuit brought by Intertainment against the bank and the insurance companies is scheduled to be heard in late autumn by a court of arbitration.


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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