Intertainment significantly outperforms forecast numbers

Munich, March 31, 2000 - In fiscal 1999 the Munich media corporation Intertainment AG outperformed revenue and result forecasts by even more than the provisional business figures released in February had indicated. According to official financial statements, the Intertainment film licensing and merchandising group boosted revenue by 91.5 percent from the previous year's level, while the result according to German DVFA accounting standards jumped by 158 percent.

Intertainment sales revenues for 1999 reached DEM 56.1 million, compared to DEM 29.3 million for the previous year. According to provisional numbers for 1999, Intertainment had expected revenues of DEM 53 million; at the time of the IPO in February 1999 the predicted revenue was set at only DEM 45.7 million, meaning actual performance was 22.8 percent better than forecasts.

In terms of result from ordinary business activities, Intertainment was even farther above forecast figures. The 1999 level of DEM 20.2 million was 130 percent above the value for the previous year. The DEM 15.7 million amount predicted at the IPO was beaten by 29 percent. At DEM 18,4 million, EBIT (earnings before interest and taxes) improved by 116 percent in comparison with 1998. Performance in terms of EBITDA (earnings before interest, tax, depreciation and amortization) amounted to DEM 37,8 million after coming in at DEM 23.5 million in the previous year.

Percentually speaking the largest jump in comparison to the previous year was chalked up by result according to German DVFA accounting standards: The 1999 total of DEM 12.4 million was a dramatic improvement on DEM 4.8 million for 1998. According to provisional expectations for 1999, result according to German DVFA accounting standards was to reach DEM 12 million, while forecasts at the time of the IPO were adjusted to DEM 11.1 million. The actual DVFA result translated into a result per share of DM 1.28 (Euro 0.65).

"These business figures prove that our prognoses are in no way over-optimistic", commented Intertainment Managing Board chairman Rüdiger Baeres. "The free-TV licensing agreement for one our film packages which we signed with Spain's Manga Films at the end of February and a similar deal closed in Italy with Mediaset just a few days ago show that we're on the right track and in an excellent position to beat forecasts for the year 2000", he added. Contractual agreements already concluded ensure Intertainment free-TV revenues totaling USD 42 million. In addition, the company is presently locked into negotiations for a number of other contracts of the same nature.

As early as the IPO, Intertainment was able to count on a jump in growth during the year 2000. According to the forecasts presented at the time, the Intertainment Group can plan on revenues of Euro 148 million (approximately DEM 290 million) for the current fiscal year. This will translate into a DEM 76 million hike in result from ordinary business activities and an improvement in result according to German DVFA accounting standards of DEM 37 million.


Press Contact:

Intertainment AG
Claudia Wilmans
Widenmayerstrasse 49
D - 80538 Munich

Tel.: ++49 89 21 69 9 - 0
Fax: ++49 89 21 69 9 - 11

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