HypoVereinsbank: Fair market value
for Intertainment at 231 Euro per share - current price at 86 Euro

Munich, March 20, 2000 - The German HypoVereinsbank has again recommended purchasing shares of Munich media corporation Intertainment AG, evaluating the stock as "above average". With a PE ratio (price/earnings ratio) of 22.3 based on earnings expected for 2001, HypoVereinsbank analysts recently stated that the shares are "clearly undervalued in the context of the branch". In comparison with the PE ratio of other German competitors also listed on the New Market, the institute placed the fair value of an Intertainment share at 231 Euro. However, this Monday Intertainment stock was traded at only 86 Euro. According to a valuation based on the ratio of market capitalization to revenue, the stock is still undervalued. Even this method, deemed by analysts as less appropriate, indicates a fair value of 138 Euro per share.

Among the factors tempering the optimistic HypoVereinsbank statements were the initial results of the action comedy "The Whole Nine Yards" in the USA. Such performance indicates that "the new Intertainment sales and distribution model will easily clear the first hurdles". "The Whole Nine Yards" is the first film under a billion-dollar contract between Intertainment and the US film production company Franchise Pictures reached last year. Under the agreement, the Munich media corporation receives the entire European marketing rights to at least 60 films produced by Franchise.

The HypoVereinsbank also cited Intertainment's 26 percent stake in the American Internet company SightSound.com as a further positive factor. Here the analysts see "a good chance that SightSound.com will establish itself as the important platform for digital music and film downloads". They also expect the company to enter the stock market within the first half of this year.

In conclusion, HypoVereinsbank analysts graded merchandising activities positively. Intertainment was particularly successful last year with the introduction of the animated character "Rudolph The Red-Nosed Reindeer". "Potential merchandising revenues from the new films still have not been factored into our estimates ", the analysts added . They expect that the current fiscal year will turn out excellently for Intertainment, with a jump in sales to 155 million Euro (from 27.1 million Euro in the previous year). The analysts predict a profit per share of 0.63 Euro for 1999, expected to climb to 1.92 in the present fiscal year and reaching 4.33 Euro in 2001.

Intertainment Corporate Information

Munich-based Intertainment AG is a media corporation specializing in the licensing and merchandising of feature films. Intertainment AG is listed on the Neuer Markt of the Frankfurt stock exchange. Based on preliminary figures for the 1999 fiscal year, the corporation increased its revenue by 81% to 53 million marks, representing an increase in conventional business activities of approx. 115% to 19 million marks. For the current fiscal year, Intertainment expects revenues of approx. 290 million marks, and an overall operating result of more than 76 million marks. This increase in sales stems largely from a European-wide expansion of business activities.


For more information contact:

Intertainment AG
Claudia Wilmans
Widenmayerstrasse 49
80538 Munich

Tel.: +49 89 21 69 9-0
Fax: +49 89 21 69 9-11
e-mail: cwilmans@intertainment.de

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