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Financial Highlights of Interim Report for the period from

Financial Highlights of Interim Report for the period from 1 January to 30 September 2002 Munich, 11 November 2002. Emphasized Financial Data. > Overview First Nine Months 2002. in million Euro. Jan-Sep 2002. Jan-Sep 2001 (pro forma). delta. delta in percent. Revenues Gross Profit

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Financial Highlights of Interim Report for the period from

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  1. Financial Highlights of Interim Reportfor the period from 1 January to 30 September 2002Munich, 11 November 2002

  2. Emphasized Financial Data > Overview First Nine Months 2002 in million Euro Jan-Sep 2002 Jan-Sep 2001 (pro forma) delta delta in percent Revenues Gross Profit EBITA EPS 156.5 10.5 - 31.6 - 1.16 88.2 30.9 9.9 0.14 + 68.3 - 20.4 - 41.5 - 1.30 + 77 - 66 n.a. n.a.

  3. Revenue Structure Revenues Jan-Sept 2002 Comments • Vast majority of revenues continue to derive from minimum guarantees on 4 released movies (Ali, Iris, Dangerous Lives of Altar Boys, K-19) • Significant profit participations in Wedding Planner and Traffic drivers for a growing share of overages • Library revenues mainly from the Largo library • In the third quarter, 58 million Euro alone were generated with K-19 156.5 1.6 17.1 137.8 Minimum guarantees Overages Library Total

  4. Revenue Projections 2002 Projected Revenues Sep-Dec 2002 Comments • With 3 film releases, the last quarter will contribute the largest share to the annual revenue budget • The Quiet American (22 November), Adaptation (6 December) and Gangs of New York (20 December) are scheduled for the Oscar-season at year-end • Other income can be recognised from financing fees, library and profit participations • Dark Blue and Life of David Gale were moved to next year due to the intense competition at this year end 250-260 94-98 0-5 156.5 Total Q1-Q3 Minimum Guarantees other Projection 2002

  5. P&L Analysis Consolidated Income Statement [in K€] Revenue 156,493 88,181 Cost of goods sold -145,953 -57,311 Gross profit 10,540 30,870 Project development costs -15,092 -5,106 Distribution costs -2,713 -2,795 General administration costs -22,012 -15,797 Other operating income 319 3,397 Other operating expenses -2,603 -703 Goodwill amortisation -4,170 -3,049 Operating result (EBIT) -35,731 6,817 Result at equity -898 -388 Financial result 301 2,934 Result before tax -36,328 9,363 Taxes on income and profits 38 -5,078 Result after tax -36,290 4,285 Undiluted earnings per share -1.16 0.14 Diluted earnings per share -1.16 0.14 1) Review PwC (unaudited) 2) unaudited Comments Jan-Sept 2001pro forma(2) Jan-Sept 2002(1) • Gross margin decreases to 7% as • no significant financing fees have been generated in 2002 • Large part of margin contribution from Ali is absorbed in purchase accounting of Initial Entertainment Group • K-19 under-performed at box office • Previous year number is also affected by high margin of “Wedding Planner” • IM has strongly invested in film develop-ment in past years; a conservative write-off policy of inactive projects has increased development costs to an extraordinary high of 15.1 million Euro

  6. P&L Analysis Comments Consolidated Income Statement Jan-Sept 2001pro forma(2) Jan-Sept 2002(1) • Overhead costs at 22 million Euro higher than last year mainly due to consolidation of IEG and extraordinary expenses in the context of corporate transactions and the restructuring of the London office • On a quarterly basis, total overhead and distribution costs have declined in 2002 from 10.2 to 7.1 million Euro; this is a result of a the restructuring of the London office as well as cost measures in Los Angeles and Munich • Higher goodwill amortisation after purchase of Initial Entertainment Group in January, 2002 [in K€] Revenue 156,493 88,181 Cost of goods sold -145,953 -57,311 Gross profit 10,540 30,870 Project development costs -15,092 -5,106 Distribution costs -2,713 -2,795 General administration costs -22,012 -15,797 Other operating income 319 3,397 Other operating expenses -2,603 -703 Goodwill amortisation -4,170 -3,049 Operating result (EBIT) -35,731 6,817 Result at equity -898 -388 Financial result 301 2,934 Result before tax -36,328 9,363 Taxes on income and profits 38 -5,078 Result after tax -36,290 4,285 Undiluted earnings per share -1.16 0.14 Diluted earnings per share -1.16 0.14 1) Review PwC (unaudited) 2) unaudited

  7. Balance Sheet Analysis Consolidated Balance Sheet: Assets Comments Assets 1 1 [in K€] 30 Sep 2002 30 Jun 2002 • Cash of 68.6 € slightly above the last quarter; the cash position covers about 165% of the current market valuation (at € 1.30 per share) • Receivables remain at a high level and are caused by the theatrical releases of “K-19”, “Ali” and “The Dangerous Lives of Altar Boys” as well as overages from “Traffic” and “Wedding Planner” • Increase in film assets due to Supect Zero and K-19 Current assets Cheques, cash in hand, central bank and bank balances 49,494 30,884 Other marketable securities 19,078 35,817 Trade accounts receivable 95,233 92,471 Film development costs 35,972 41,867 Deferred tax assets 0 14,448 Prepaid expenses 627 1,202 Other current assets 13,852 39,977 Total current assets 214,256 256,666 Non-current assets Fixed assets 13,352 13,053 Film and licence assets 285,677 217,000 Goodwill 77,698 78,090 Other intangible assets 22 24 Investments in associated companies 95 92 Loans to associated companies 1382 1,469 Payments on account to participating interest 0 0 Deferred tax assets 47,849 40,775 Other non-current assets 26,540 25,540 Total non-current assets 452,615 376,043 Total assets 666,871 632,709 1) Review PwC (unaudited)

  8. Balance Sheet Analysis Consolidated Balance Sheet: Assets Comments Assets 1 1 [in K€] 30 Sep 2002 30 Jun 2002 • Lower level of development investments thanks to recoupment of costs after production start of three film projects (Terminator 3, Masked & Anonymous and Suspect Zero) and conservative project amortisation policy • Netting with deferred tax liabilities is not possible due to varying durations Current assets Cheques, cash in hand, central bank and bank balances 49,494 30,884 Other marketable securities 19,078 35,817 Trade accounts receivable 95,233 92,471 Film development costs 35,972 41,867 Deferred tax assets 0 14,448 Prepaid expenses 627 1,202 Other current assets 13,852 39,977 Total current assets 214,256 256,666 Non-current assets Fixed assets 13,352 13,053 Film and licence assets 285,677 217,000 Goodwill 77,698 78,090 Other intangible assets 22 24 Investments in associated companies 95 92 Loans to associated companies 1382 1,469 Payments on account to participating interest 0 0 Deferred tax assets 47,849 40,775 Other non-current assets 26,540 25,540 Total non-current assets 452,615 376,043 Total assets 666,871 632,709 1) Review PwC (unaudited)

  9. Balance Sheet Analysis Consolidated Balance Sheet - Liabilities Comments 242 • Slight increase of bank liabilities due to film production financing of Suspect Zero • All film loans are non-recourse to IM and solely pledged by the film project • The Largo film library loan is backed by the library assets • IEG film assets (mainly Traffic, Ali, and Gangs of New York) are backing the IEG bank loan; non recourse of IEG liabilities against IM assets • Leasing liabilities are recourse only against receivables of the respective assets 216 198 Q 1 Q 2 Q 3 216 114 67 35 Bank liabilities 30 Sept Non-recoursefinancing IEG + Largo Leases and others

  10. Cash Flow Analysis Consolidated Cash Flow Statement Comments Nine-months report 1 Jan to 30 1 Jan to 30 • Depreciation for “K-19”, “Ali”, “The Dangerous Lives of Altar Boys”, “Traffic” and “Wedding Planner”, reflecting a significantly higher level of film releases • The positive operating Cashflow is mainly driven by depreciation and by an increase of accrued liabilities • Investment level increases due to several film projects such as “K-19”, “Basic” and “Suspect Zero” Sep 2002 1 Sep 2001 [in K€] pro forma 2 Net loss/profit -36,290 4,285 Depreciation and amortisation 128,501 20,174 Changes in non-cash accrued liabilities 67,791 19,939 Changes in non-cash deferred tax assets -15,026 -12,703 Other non-cash expenses and income 0 -1,119 Changes in inventories -2,202 -12,475 Changes in trade accounts receivable and other -14,696 63,682 Changes in other short-term assets 490 -1,644 Changes in trade accounts payable -41,420 -15,475 Changes in other liabilities -161 -3,510 Cash flows from operating activities 86,987 61,154 Investments in intangible assets -196,829 -74,715 Investments in fixed assets -1,653 -1,703 Financial investments -326 -2,360 Receipts from disposals of assets 14 117 Change in consolidation group 0 -14,817 -198,794 -93,468 Cash flows from investing activities Changes in financial liabilities 31,084 3,397 Cash flows from financing activities 31,084 3,397 Effect of foreign currency exchange rate changes -7,763 -10,750 Effect of changes in consolidated group on cash and cash equivalents 9,018 0 Net changes in cash and cash equivalents -79,468 -39,667 Cash and cash equivalents at beginning of period 148,040 191,338 Cash and cash equivalents at end of period 68,572 151,671 1) Review PwC (unaudited) 2) unaudited

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