Press Release of Intertainment AG
No danger of insolvency as a result of HypoVereinsbank loan
Clarification of press articles issued during the past few days
Ismaning near Munich, 24 August, 2004 – There have been repeated reports in the German press concerning Intertainment AG and a HypoVereinsbank loan made to Intertainment's subsidiary company, Intertainment Licensing GmbH, which was originally due on June 30 2004. The reports stated, amongst other things, that Intertainment AG would face bankruptcy should HypoVereinsbank call due the loan, as Intertainment AG had provided a security for the loan.
The fact is that, in the opinion of Intertainment and its lawyers, there is no legal basis by which this loan can be called due because Intertainment concluded a fundamental agreement some time ago with HypoVereinsbank. Under this agreement Intertainment was obligated to pay a one-off sum to the bank, followed by further payments under a debtor warrant. In return, the agreement stated that Intertainment was entitled to a discharge of residual debt by the bank. Intertainment paid this one-off sum to HypoVereinsbank in October of 2003.
HypoVereinsbank and Intertainment have, however, still not reached an agreement concerning the exact wording of the agreement. It is possible that the wording of the agreement will need to be determined in court.
Contact:
Intertainment AG, 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