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CARLTON COMMUNICATIONS RELEASES PRELIMINARY STATEMENT FOR YEAR ENDED SEPT. 30, 1991

 CARLTON COMMUNICATIONS RELEASES PRELIMINARY STATEMENT
 FOR YEAR ENDED SEPT. 30, 1991
 -- Turnover 601 million pounds sterling (764 million pounds); US$1,053 million (US$1,338 million)
 -- Pre-tax profits 89 million pounds (127 million pounds); $156 million ($223 million)
 -- Total dividend for the year up 10 percent to 15.5 pence (54.3 cents per ADR)
 -- 163 million pounds ($285 million) net cash. No gearing.
 -- Carlton is financially strong with the right products and services to take advantage of the opportunities presented as worldwide economies improve in 1992 and 1993
 LONDON, Dec. 10 /PRNewswire/ -- Michael Green, chairman of Carlton Communications Plc (NASDAQ: CCTVY), today released the following preliminary statement for the year ended Sept. 30, 1991:
 Introduction
 "1991 was a year for the maximization of cash flow, consolidation and the vigorous control of costs. Carlton achieved pre-tax profits of 88.8 million pounds (1990 -- 127.1 million pounds) (US$155.6 million; 1990 -- US$222.7 million) on a turnover, including share of associates, of 601 million pounds (1990 -- 764 million pounds) ($1,053.2 million; 1990 -- $1,337.9 million).
 "The proposed final dividend of 9.4 pence net (1990 -- 8.5 pence net) (32.9 cents per ADR; 1990 -- 30 cents) will bring the total for the year to 15.5p (1990 -- 14.1p) (54.3 cents per ADR; 1990 -- 49.4 cents). Earnings per share were 29.6p (1990 -- 42.8p) ($1.04 per ADR; 1990 -- $1.50) covering the dividend twice.
 "Carlton generated 130 million pounds ($228 million) of cash from operations and 55 million pounds ($97 million) after the payment of tax, all capital expenditure and dividends. At the year end, Carlton had gross cash of 250 million pounds (1990 -- 170 million pounds) ($438 million; 1990 -- $298 million) and net cash of 163 million pounds (1990 -- 115 million pounds) ($285 million; 1990 -- $201 million). Shareholders' funds increased from 355 million pounds in 1990 ($622 million) to 395 million pounds ($691 million) in 1991.
 "Video cassette production saw a return to growth in the second half, as forecast in the interim report. However, the video and sound products division was particularly affected by the worldwide economic climate. Television and film services produced a creditable performance but U.K. facilities were affected by the downturn in advertising revenue and the exceptional changes taking place in independent television in the U.K.
 "1991 was an eventful year for Carlton. During December, Carlton Television will formally accept the offer of the London Weekday Channel 3 license, for an initial period of 10 years from January 1993.
 "The offer of the license was the culmination of a major team effort. Carlton Television is working hard to implement its detailed business plan to begin broadcasting in just over 12 months' time.
 "Carlton has long regarded terrestrial broadcasting as an important area of development, offering the potential for a meaningful source of profits throughout the license period and the opportunity to strengthen our position across the television and film industries. The London Weekday license is the biggest Channel 3 franchise, reaching some 4.4 million homes, and it enjoys the highest share of net advertising revenue.
 "We were also pleased that Central Television, in which we have a 20 percent interest, was successful in retaining its license unopposed for the East, West and South Midlands area.
 "On Nov. 22, we announced that we were taking a 20 percent investment in Sunrise Television, which was awarded the National Breakfast Television License.
 Television and Film Services
 "Carlton's television and film services division reported pre-tax profits of 28.4 million pounds ($49.7 million) on a turnover of 209 million pounds ($366.2 million). The second half results were affected by the difficulties of the facilities industry in the U.K., caused to a significant extent by the uncertainties of the Channel 3 license applications. The requirements of the new license holders to offer programming to the network for early 1993 and the commitment that 25 percent of programs must be made by independent producers will be beneficial to the industry.
 "Major box office successes released by Technicolor's clients included 'Terminator 2,' 'Robin Hood: Prince of Thieves' and 'Three Men and a Little Lady.'
 Video Cassette Production
 "Video cassette production made pre-tax profits of 31.1 million pounds ($54.5 million) on a turnover of 187.6 million pounds ($328.7 million). The return to growth, forecast at the interim stage, has occurred with turnover and profit before tax growing at 12 percent and 21 percent, respectively, for the second half as against the corresponding period in the previous year. The moderate increase in margin and volumes is particularly pleasing even though turnover and profit before tax for the whole year still shows a decrease on 1990.
 "Major releases for the Christmas sell-through market include 'Fantasia,' 'Robin Hood: Prince of Thieves' and 'The Simpsons.'
 Video and Sound Products
 "This division made pre-tax profits of 14 million pounds ($24.5 million) on a turnover of 117.4 million pounds ($205.7 million). The profitability of video and sound products has been affected by a year of profound worldwide recession. These high value items are directed at the professional market which has suffered from the shortage of credit and the general economic downturn. However, we are pleased that we have managed to maintain gross margins.
 "We have continued to invest in research and development and introduced new products to ensure that this division offers wider markets proprietary technology. For example, the new Desktop Paintbox has a mass market potential as it interacts with the Apple-Macintosh desktop publishing system. Similarly, Domino brings creative freedom to the film industry, allowing faster and more economical special effects.
 "It is these and other new products and our continuing commitment to upgrading and extending the capabilities for existing equipment that will allow us to benefit from the expansion of the professional product markets as recovery begins and to take advantage of the future growth of television and video as a worldwide medium.
 Management
 "On May 1, 1991, Keith Edelman took up his appointment as managing director. He has responsibility for all Carlton's operating companies on a day-to-day basis. I am delighted to welcome him to Carlton.
 "Nigel Walmsley joined Carlton Television as chief executive in February 1991. On Oct. 16, 1991, he joined the board of Carlton where he will have special responsibility for managing and developing Carlton's broadcasting interests.
 Conclusion
 "Carlton is financially strong with substantial cash resources and no net debt. The company is clearly focused in television, film and associated media services. Resources, both managerial and financial, and the products and services we provide, enable us to look forward to renewed growth as the economic climate improves and we are excited by the opportunities and challenges that are available to us."
 NOTE: Solely for convenience, financial information within this statement has been translated using $1.752/1 pound sterling, the rate in effect on Sept. 30, 1991.
 -0- 12/10/91
 /CONTACT: Michael Green, chairman, or Simon Case of Carlton, in the U.K., 071-499-8050/
 (CCTVY) CO: Carlton Communications Plc ST: IN: ENT SU: ERN


GK-FS -- NY009 -- 0881 12/10/91 09:32 EST
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