Cinergi Pictures Entertainment reports second quarter results.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Aug. 14, 1996--Cinergi Pictures Entertainment Inc. (CINE: Nasdaq) today reported results for the second quarter and six months ended June 30, 1996.

Revenues for the quarter ended June 30, 1996 were $22,467,000 compared with $50,960,000 during the second quarter of 1995. The Company incurred a net loss for the second quarter of 1996 of $716,000, or $0.05 per share, compared with a net loss of $9,435,000, or $0.76 per share, during the same period last year. The weighted average number of common and common share equivalents outstanding for the second quarter of 1996 rose to 14,192,000, from 12,478,000 in 1995, reflecting the Company's May 1995 common stock offering.

Cinergi had no new motion pictures released theatrically during the second quarter of 1996 but derived revenue from the domestic home video availability of The Scarlet Letter as well as continuing domestic and foreign revenues from Die Hard With a Vengeance and Tombstone. The second quarter of 1995 reflected revenues from the theatrical release of Die Hard With a Vengeance, revenues from previously released pictures and a charge related to the reduction of the cost of Judge Dredd to its future net realizable value.

Revenues for the six months ended June 30, 1996 were $59,583,000 compared with $63,666,000 for the six months ended June 30, 1995. The Company had no new theatrical motion picture releases in the first half of 1996 but derived international feature film revenues from Nixon and revenues from previously released pictures. Results for the first six months of 1995 include the theatrical release of Die Hard With a Vengeance and revenues from previously released pictures. The Company reported a net loss of $1,353,000, or $0.10 per share, for the six months ended June 30, 1996, compared with a net loss of $9,202,000, or $0.78 per share, for the same period last year. The weighted average number of common and common share equivalents outstanding for the first six months of 1996 rose to 14,192,000, from 11,838,000 in 1995, reflecting the Company's May 1995 common stock offering.

During the first half of 1996, Cinergi's selling, general and administrative expenses increased to $2,879,000 from $1,389,000 for the first half of 1995 primarily due to the overhead from the Company's visual effects facility not being capitalized into film costs in 1996 as it was in 1995 (as no films in production during the first half of 1996 utilized the facility), and increased legal expenses.

Commenting on the results, Andrew G. Vajna, Chief Executive Officer of Cinergi, said, "Our second quarter results, a period in which we had no new theatrical motion picture releases, reflect ancillary revenues generated from previous Cinergi releases."

Vajna added, "Our first 1996 motion picture release, The Shadow Conspiracy starring Charlie Sheen and Linda Hamilton and directed by George Cosmatos, will occur in the fourth quarter, with a mid-October release currently planned. This will be followed in December by Evita, starring Madonna, Antonio Banderas and Jonathan Pryce, and directed by Alan Parker. Post-production on Evita is currently underway, and initial scenes of the film have generated an enthusiastic response from the motion picture community and the press."

Looking forward Vajna concluded, "Principal photography commenced on Deep Rising, an action, adventure, horror, thriller that takes place on the high seas. The film, starring Treat Williams and directed by Stephen Sommers, is currently expected to be released during the second quarter of 1997. We are in the process of evaluating several other film projects for next year which we anticipate starting later this year or early in 1997.

"Finally, our ongoing strategic review of the Company's business strategies and goals continues, which includes discussions with third parties regarding the sale of a partial interest in the Company or the entire Company. The strategic review is being aided by the financial advisory firm of Jefferson Capital Group, Ltd."

Cinergi Pictures Entertainment is an independent producer and distributor of motion pictures which are distributed in all domestic and international theatrical and ancillary markets, including home video, cable and broadcast television. -0-

               CINERGI PICTURES ENTERTAINMENT INC.
         Condensed Consolidated Statements of Operations
              (in thousands, except per share data)
                           (Unaudited)

                              Three Months           Six Months
                              Ended June 30,        Ended June 30,
                              1996     1995         1996     1995
Revenues
 Feature films              $22,447  $50,844      $59,552  $63,478
 Fee income                      20      116           31      188
                             22,467   50,960       59,583   63,666

Costs and expenses
Amortization of film costs,
 residuals & participations (22,076) (59,896)     (58,411) (71,697)
Selling, general and
 administrative expenses     (1,403)    (820)      (2,879)  (1,389)

Operating loss               (1,012)  (9,756)      (1,707)  (9,420)

Interest expense                  0        0         (176)       0
Interest income                 296      179          530      218

Net loss before provision
 for income taxes              (716)  (9,577)      (1,353)  (9,202)

Provision for income taxes        0      142            0        0

Net loss                      ($716) ($9,435)     ($1,353) ($9,202)

Net loss per share           ($0.05)  ($0.76)      ($0.10)  ($0.78)

Weighted average number of
 common shares outstanding   14,192   12,478       14,192   11,838

CONTACT: Cinergi Pictures Entertainment Inc., Santa Monica

Warren Braverman, Chief Operating Officer, 310/315-6000

or

Jaffoni & Collins Inc., New York 

Joseph N. Jaffoni, David C. Collins, 212/505-3015