Metromedia International Group reports financial results for 1996 fourth quarter and year.

EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--March 27, 1997--- Metromedia International Group Inc. (ASE:MMG)(MMG) Thursday reported financial results for the fourth quarter and year ended Dec. 31, 1996, which includes the results of operations for the Communications Group's joint ventures for the 12 months ended Sept. 30, 1996.

Revenues for the 1996 fourth quarter were $88,580,000, compared with $25,069,000 for the same period in 1995. Significant revenue increases were achieved in both of the company's major operating units: Communications and Entertainment. In addition, the 1996 fourth quarter reflects revenues derived from the consolidation of Snapper as of Nov. 1, 1996.

MMG had an operating loss of $21,671,000 for the 1996 fourth quarter, compared with an operating loss of $22,646,000 in the 1995 fourth quarter. The company had a net loss of $34,392,000, equal to 52 cents per common share, in the 1996 fourth quarter, compared with a net loss of $359,750,000, or $10.18 per common share, in the same 1995 quarter. ($293,570,000, or $8.30 per common share, of the 1995 quarterly loss was attributable to a loss on disposal of discontinued operations and $32,282,000, or 92 cents per common share, to a loss on early distinguishment of debt.)

Revenues for the year ending Dec. 31, 1996, were $201,755,000, compared with $138,970,000 in 1995. The company had an operating loss of $54,522,000 in 1996, compared with an operating loss of $48,737,000 in the previous year. MMG's net loss in 1996 was $115,243,000, or $2.12 per common share, compared with a net loss of $412,976,000, or $16.83 per common share, in 1995.

Stuart Subotnick, president and chief executive officer of MMG, said: "The company achieved significant revenue growth in 1996. The Communications Group continued in 1996 to expand its existing system subscriber base and construct and launch new systems, along with entering new markets.

"The Entertainment Group expanded its operations during the year with the inclusion of the Goldwyn Entertainment Group, Landmark Theatres and Motion Picture Corporation of America. We also decided to actively manage our Snapper subsidiary, which produces premium-priced power lawn mowers and related products."

The Communications Group's combined joint ventures had important increases in the major indicators of its business:

--Total subscribers for the company's cable TV, paging and telephony services at the end of the 1996 fiscal year was 120,596, compared with 52,360 at year-end 1995, which represents an increase of 130 percent, and 17,773 at the end of 1994.

--The number of joint ventures at the end of 1996 was 35, compared with 19 at year-end 1995 and 10 at the end of 1994.

--Combined joint venture revenue for the group in 1996 was $56,233,000, compared with $23,913,000 in 1995, which represents an increase of 135 percent, and $6,825,000 in 1994.

The Entertainment Group, in mid-1996, acquired the operations of the Goldwyn Entertainment Company and Motion Picture Corporation America to its existing production and distribution activities of Orion Pictures Corp. Combined, the three companies now have a film library in excess of 2,200 titles, making it one of the largest and most valuable in the entertainment industry.

During the year, Metromedia Entertainment Group obtained new production financing, commenced production on several new feature films and entered into distribution agreements with several leading independent film producers.

Metromedia International Group is a global communications, media and entertainment company whose primary operations are engaged in two businesses: the development and operation of communications businesses, including wireless cable television systems, various forms of telephony service, radio paging systems and FM & AM radio stations in Eastern Europe, the former Soviet Republics and other emerging markets through its communications group; and the development, production, acquisition and worldwide distribution of motion pictures, television programming and prerecorded videocassettes through Metromedia Entertainment Group. -0-

Statements in this news release relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Metromedia International Group to be materially different from those expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, foreign political and economic risk, changes in laws and regulations governing the company's foreign operations, motion picture industry trends and other factors that are described in the company's Securities and Exchange Commission filings. -0-

                   Metromedia International Group Inc.
                  Consolidated Statements of Operations
                  (in thousands, except per-share amounts)

                                     Years Ended

                           Dec. 31,       Dec. 31,     Feb. 28,
                              1996           1995         1995

Revenues                  $201,755       $138,970     $194,789

Cost and expenses:
   Cost of rentals and
    operating expenses     161,564        132,951      187,477
   Selling, general and
    administrative          81,481         51,961       41,955
   Depreciation and
    amortization            13,232          2,795        1,916

Operating loss             (54,522)       (48,737)     (36,559)

Interest expense, including
 amortization of debt
 discount of $9,355 in
 Dec. 31, 1996, and
 $10,436 in Dec. 31, 1995,
 and $12,153 in
 Feb. 28, 1995.             36,256         33,114       32,389
Interest income              8,838          3,575        3,094
   Interest expense, net    27,418         29,539       29,295

Loss before provision for
 income taxes, equity in
 losses of Joint Ventures,
 discontinued operations
 and extraordinary item    (81,940)       (78,276)     (65,854)
Provision for income taxes   1,414            767        1,300
Equity in losses of
 Joint Ventures             11,079          7,981        2,257

Loss from continuing
 operations before
 discontinued operations
 and extraordinary item    (94,433)       (87,024)     (69,411)

Discontinued operations:
   Loss on disposal of
    asset held for sale    (16,305)      (293,570)           -

Loss before extraordinary
 item                     (110,738)      (380,594)     (69,411)

Extraordinary item:
   Early extinguishment of
    debt                    (4,505)       (32,382)           -

Net loss                 $(115,243)     $(412,976)    $(69,411)

Primary loss per common
 share:
   Continuing operations    $(1.74)        $(3.54)      $(3.43)
   Discontinued operations  $(0.30)       $(11.97)      $    -
   Extraordinary item       $(0.08)        $(1.32)      $    -
   Net loss                 $(2.12)       $(16.83)      $(3.43)


-0-
                        Business Segment Data

                                    Calendar    Calendar     Fiscal
                                      1996        1995        1995
Entertainment Group:
Net revenues                        $165,164    $133,812    $191,244
Direct operating costs              (164,016)   (157,000)   (210,365)
Depreciation and amortization         (5,555)       (694)       (767)
Loss from operations                  (4,407)    (23,882)    (19,888)

Assets at year end                   490,288     283,093     351,588
Capital expenditures                   3,648       1,151       1,198

Communications Group:
Net revenues                          14,047       5,158       3,545
Direct operating costs               (39,021)    (26,803)    (19,067)
Depreciation and amortization         (6,403)     (2,101)     (1,149)
Loss from operations                 (31,377)    (23,746)    (16,671)

Equity in losses of Joint Ventures   (11,079)     (7,981)     (2,257)

Assets at year end                   195,005     161,089      40,282
Capital expenditures                   3,829       2,324       3,610

Snapper(a):
Net revenues                          22,544          --          --
Direct operating costs               (30,653)         --          --
Depreciation and amortization         (1,256)         --          --
Loss from operations                  (9,365)         --          --

Assets at year end                   140,327          --          --
Capital expenditures                   1,252          --          --

Headquarters and eliminations:
Net revenues                              --          --          --
Direct operating costs                (9,355)     (1,109)         --
Depreciation and amortization            (18)         --          --
Income from operations                (9,373)     (1,109)         --

Assets at year end, including
 discounted operations and
 eliminations                        119,120     155,456          --

Consolidated -- continuing
 operations:
Net revenues                         201,755     138,970     194,789
Direct operating costs              (243,045)   (184,912)   (229,432)
Depreciation and amortization        (13,232)     (2,795)     (1,916)
Loss from operations                 (54,522)    (48,737)    (36,559)

Equity in losses of joint ventures   (11,079)     (7,981)     (2,257)

Assets at year end                   944,740     599,638     391,870
Capital expenditures                $  8,729    $  3,475    $  4,808

(a)  Represents operations from Nov. 1, 1996, to Dec. 31, 1996.

CONTACT: Phillip I. Myers, 310/282-2572

310/282-2584 (fax)