Press Release of Intertainment AG

Annual General Meeting of Intertainment AG

First witness cross-examinations in the arbitration proceeding against Co-merica Bank look likely to start at the end of September

Munich, September 13, 2005
– Intertainment AG, Munich, continues to be optimistic about receiving compensation for the damage sustained from the budget fraud per-petrated by US filmmaker Franchise Pictures and other parties. In this connection, Intertainment is taking three approaches, explained Intertainment Board Member Achim Gerlach at the company’s Annual General Meeting. Intertainment is focusing on the existing claims arising from the trial for damages against Franchise Pictures, former CEO Elie Samaha and against 16 other companies, where a favorable verdict was obtained in the USA in June 2004. In this context, Intertainment is pursuing its claims within the framework of the Franchise insolvency proceeding and through en-forcement measures taken against Samaha personally. Intertainment is assuming that it will receive part of the amount awarded for damages from Franchise Pictures and Elie Samaha, emphasized Gerlach.

The company is expecting additional cash flows from the arbitration proceeding against Comerica Bank and executives of the bank currently pending in the USA. This is the second proceeding in connection with the budget fraud. Intertainment filed a suit against Comerica Bank for compensation for damages amounting to at least 100 million dollars. The arbitration proceeding is currently in the discovery phase. Gerlach explained that there is no fixed deadline for the conclusion of this phase. He reported that initial cross-examinations of witnesses would be held at the end of Sep-tember or the beginning of October, even if the discovery phase has not yet been concluded at that point. The actual oral hearing before the court of arbitration will only commence after the discovery phase and witness cross-examinations have been completed.

Gerlach drew the attention of the Annual General Meeting to the fact that the litiga-tion in the USA has exerted a strong negative impact on Intertainment. At the end of the first half year 2005, Intertainment only had liquid assets amounting to 0.4 million euros. He continued by saying that the situation had been eased by the conclusion of a film deal with the Tele München Group amounting to 2.6 million euros at the end of August 2005.

End of the Press Release

Contact:

Intertainment AG, Investor Relations, Frauenplatz 7, 80331 Munich, Germany;
Telephone: +49 (0)89 21699-0, Fax: +49 (0)89 21699-11,
Internet: www.intertainment.de, E-Mail: investor@intertainment.de
 

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