Intertainment AG beats the expectations
Munich-based media company increases DVFA-result by 150 percent

The Munich-based media company Intertainment significantly surpassed its turnover and revenue forecast for the business-year 1999. According to preliminary figures for the film- rights trading and license business, as well as the merchandising related business, there is an increase in group turnover to 53 million DM, or an increase of 81 percent in comparison to the business year 1998. Particularly greater was the increase in profit for the Group. The preliminary numbers indicate a result for ordinary business operations of 19 million DM in comparison with 8.81 million DM in the business year 1998. Based on these figures, Intertainment realized an increase of 115 percent. The preliminary DVFA-result for 1999 was 12 million DM, in comparison with 4.8 million DM for 1998, an increase of approximately 150 per cent. The Earnings per share for 1999 by the Group was 1.24 DM (0.63 Euro), in comparison with 0.25 DM (0.13 Euro) in the preceding year.

Based on these figures, Intertainment significantly surpassed the business forecast. The initial listing of the media group on the Neuer Markt, of the Frankfurt stock exchange, occurred exactly one year earlier. At that time, the turnover forecast released was an amount of 45.7 million DM.

The higher than expected resulting turnover is more than anything attributable to the significantly greater than planned results from the Christmas-cult-figure "Rudolph the Red-Nosed Reindeer", which already had a partial effect on turnover in 1999. The Rudolph video was the best-selling video in Germany during November and December.

A significant growth push expected

Intertainment estimates the current business year will be essentially better than the year 1999 and the group will have significant growth. The business is further along toward achieving the forecast made at the time of the initial offering of a turnover of about 290 million DM that in the year 2000. This would be an increase of about 450 percent in comparison to 1999. Intertainment expects an ordinary business result of more than 76 million DM. The result per share would increase to 3.83 DM (1.96 Euro). While Intertainment was only active the last year in German-speaking Europe, the Group increases its activities this year over all of Europe. The first fruits of the prior year’s film acquisition will be seen. In April the action-comedy "The Whole Nine Yards" with Bruce Willis in the leading role will be released. And Intertainment holds the European rights to other high-class US feature films to be released in European theaters this year. These films include, among others, "Art Of War" with Wesley Snipes, "Get Carter" with Sylvester Stallone and "The Pledge" with Jack Nicholson. After the furious start of 1999, further significant turnover potential is expected by Intertainment in the long-term marketing of "Rudolph The Red-Nosed Reindeer" – the Munich company holds all license rights for Rudolph in German-speaking Europe.

Intertainment AG
Claudia Wilmans
Widenmayerstrasse 49
80538 München

Tel.: 089/21699-0
Fax: 089/21699-11