1 IM Internationalmedia AG Press Conference, 18 November 2002

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IM Internationalmedia AG Press Conference, 18 November 2002

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> Agenda

Introducing Comments This presentation is intended as a guidance for the conference call. It

focuses on the company’s efforts to adapt its cost structure to the

current filmed entertainment’s market conditions. Therefore it omits a

detailed description about the company’s history. An initial forecast for

2003 will also be provided. The presentation should only be interpreted

with the help of oral comments from the management board. The

presentation addresses the following topics:

Future Strategy Business Outlook 2003

Market Acceptance

Overhead Requisites

Development Costs

Film slate

Revenues/Costs

Cash Projection

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Internationalmedia Strategy

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> Internationalmedia Strategy

IM

Development

Demand Supply

IM will find a balanced market position

IM is in the fortunate position to be able to cut back on film development as it already has several promising projects ready for greenlighting over the next two years

IM will adapt its overhead cost structure as development and distribution face strategic operative changes, e.g. one or several domestic / foreign distribution deals

Enhancing market acceptance through one or several domestic / foreign distribution deals

OverheadMarket

Acceptance

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Internationalmedia StrategyMarket Acceptance

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Company Production FinancingDomestic Foreign

Features Studio Bank Soft

MoneyStudio Deal

Foreign Output Deals

Foreign Sales

Sales Servicing

Intermedia

Spyglass

New Regency

Mandalay

Beacon

Revolution

Distribution

Strategic opportunity if closing a distribution deal

Competitive Advantage: Intermedia differentiates itself through soft money (e.g. tax funds in Germany and Netherlands, Sale-and-Leasebacks and Government Subsidies in multiple foreign jurisdictions) and its foreign sales/servicing and has produced studio level films without the benefit of a studio deal

Competitive Disadvantage: White spots are competitive disadvantages, especially under difficult market conditions, as it is hard to push film projects into the market. A domestic/foreign distribution deals would significantly increase its competitive position in the market

> Market Acceptance

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IM focuses on the profitable low and high budget films

Internationalmedia will provide its distribution partners with two targeted slates of films

Rationale: Films with budgets over 75 million US$ and under 25 million US$ prove to have higher profit potential than films with budgets in between

• Event/Tentpole Slate: Intermedia will produce two to four high concept, star driven films annually with budgets greater than 75 million US$

• Genre/Concept Slate: Intermedia will produce or acquire two to four films annually with budgets less than 25 million US$, targeted by genre (Scream) or concept/demographic (American Pie)

> Market Acceptance

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Internationalmedia’s distribution strategy has three primary elements:

1. Domestic: Secure a multi-picture distribution deal for four to five films per year. The balance will be distributed on a case by case basis.

2. Foreign: Negotiate selective distribution deals in two key territories with guaranteed TV revenues

3. Foreign: Continue to pre-sell films in other territories on an individual or small package basis; alternatively, sell all foreign rights to a single studio

Other elements include:• IEG will produce and distribute one to two films each year • Intermedia will be opportunistic in acquiring and distributing third party

produced films• The distribution group will service 3-5 non-Intermedia films annually

Distribution strategy secures constant output

> Market Acceptance

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Internationalmedia StrategyDevelopment Cost Reduction

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> Development Cost Reduction

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10

15

20

25

30

2001 2002 2003 2004 2005

Overhead Deals

Overhead producer deals will be reduced significantly.

Development Projects

Development spending can be reduced as a large number (over 50) of projects are already in the pipeline at an advanced stage.

In million US$

Cost cutting results in 17 million US$ in yearly savings

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Internationalmedia StrategyOverhead Cost Reduction

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Overhead will decrease significantly

Q4Q1

Q2Q3 Q4 Q1 Q2 Q3 Q4

Overheads by Quarter

0

2.000

4.000

6.000

8.000

10.000

12.000

2001 2002

´000

US

$

> Overhead Cost Reduction

2003

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Internationalmedia Outlook 2003

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> Film Outlook 2003

Major US-releases in each of the four quarters

Financial Planning 2003Revenue and Assumptions

US Releases 2003

Quarter 1 National Security (Martin Lawrence, Steve Zahn) 01/17/2003

Life of David Gale (Kevin Spacey, Kate Winslet) 02/21/2003

Dark Blue (Kurt Russell, Ving Rhames) 02/21/2003

Quarter 2 Basic (John Travolta) 04/18/2003

Quarter 3 Terminator 3 (Arnold Schwarzenegger) 07/02/2003

Mindhunters (Val Kilmer, Christian Slater) Summer 2003

Quarter 4 Suspect Zero (Ben Kingsley) Fall 2003

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Terminator 3 with outstanding potential

> Film Outlook 2003

Terminator 2 snap shot

205 m $ US B.O. + 312 m $ B.O. rev. = 517 m $ tot. B.O. *) #1 film in 1991 US Box office Film release date: 4 July 1991

Terminator 3 potential

Terminator still one of the top franchise names Ancillary rights such as video games through

Infogrames, theme parks, etc. IM participates 50% in worldwide theatrical and video

gross revenues

Current market characteristics

Sequels are latest winners in US Box office No sales fading at sequels with

o special effects

o strong marketing campaign Old 2/3 rule of thumb not valid anymore

o Rush Hour II (+21%)

o Mission Impossible II (+46%)

*) in 1991-dollar-value

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> Revenue Outlook 2003

IM continues to drive up revenues in 2003

Production Volume Overages and Library

• Production Start for 5 – 7 films

• Total Production Volume of approx. US$ 400m – 450m

• Traffic

• Iris

• The Wedding Planner

• Sliding Doors

• Largo and MEI library

Financial Planning 2003Revenue and Assumptions

(T3 overages expected but not included)

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225

Revenue CAGR bigger than 35%

> Revenue Outlook 2003

Revenue Outlook 2003

RevenuesIn million €

Source: IM Internationalmedia AG

1997 1998 1999 2000 2001 2002e 2003e0

50

100

150

200

250

300

350

400

150200

250

300

375

0

100

200

300

400

500

600

700

Low Medium High

Terminator 3 Potential

International B.O.Domestic B.O.

Box Officein million €

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Cash position stabilizes due to cost cutting efforts

> Cash Outlook 2003

Cash position controlled in 2003

Source: IM Internationalmedia AG

55.4 18.1

12.8

4.0

14.0

55.4

3.546.0

DevelopmentRecoupment

DevelopmentSpent

Overhead

CashJanuary 1,

2003 Overages,Ancillary

Rights

Library,Servicing

Fees

UPSIDE:Financing

Fees

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Internationalmedia will return to profitability in 2003

> Summary Outlook 2003

Profit and Loss Outlook 2003

Revenues 330.0 – 350.0 million US$

Company Overhead 18.1 million US$

Development Costs 11.0 – 13.0 million US$