Splendid Medien AG: Consolidated Financial Report for the 2004 business year

Press release - April 29, 2005

- Sales at € 23.0m

- Positive EBIT before exceptional influences amounting to € 1.2m

- Consolidated net income at – € 0.7m

- Final settlement with Gold Circle Films

- High cash flow of more than € 5m

(Cologne, April 29, 2005) - Splendid Medien AG, Cologne, reported consolidated sales for fiscal year 2004 amounting to € 23.0m (prev. yr.: € 33.8m ). The most important division was home entertainment which delivered 58 % of total sales. In second place was the licensing division with a 32 % share of sales, ahead of postproduction whose sales share was 10 %.

The consolidated net earnings before interest, taxes and depreciation and amortization (EBITDA) was € 5.0m (prev. yr.: € 10.9m). The earnings before interest and taxes (EBIT) was about € -1.7m (prev. yr.: € -1.2m).

The earnings situations in 2004 was especially influenced by the unexpected and drawn-out legal dispute with Gold Circle Films LLC which was resolved in March of this year by a settlement. This depressed earnings by € 1.7m (incl. attorneys' fees). Additional costs arose in connection with the unplanned write-downs of film assets amounting to € 1.2m. Taking these exceptional influences into account results in a positive EBIT for the group of € 1.2m.

The equity capital of the company on the balance sheet date was € 9.3m (prev. yr. € 10.0m). Liquid funds amounted to € 5.1m (prev. yr. € 6.5m). The company was able to sharply reduce liabilities towards banks from the previous year's € 2.8m to € 1.8m by December 31, 2004. Hence, the balance sheet structure showed low debt, high liquidity and a continuing good equity ratio of 36.6 %.

With the finalization of the settlement reached with Gold Circle Films LLC the phase of operative consolidation has been largely completed. The company will now concentrate on securing the mid-term capital base and is holding detailed discussions which also include exploiting the approved capital and other capital measures. The board assumes that these talks will be brought to a conclusion in the near future.

Splendid Medien AG assumes that in the course of the current business year 2005 sales will again dip in comparison to the previous year, but that overall a positive result will be achieve.

The report for the 2004 business year can be downloaded from our homepage

You can obtain additional information from:

Splendid Medien AG
Dr. Gert Fisahn
Alsdorfer Str. 3
50933 Köln
Tel.: 0221-95 42 32 34
Fax: 0221-95 42 32 8

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URL: http://www.splendidmedien.com/en/page/splendid-medien-ag-consolidated-financial-report-for-the-2004-business-year-1446