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INTERNATIONAL MOVIE GROUP REPORTS FISCAL YEAR-END 1993 RESULTS

 LOS ANGELES, Oct. 18 /PRNewswire/ -- International Movie Group (AMEX: IMV) today reported results for the fiscal year ended June 30, 1993.
 Revenue for the three months ended June 30, 1993, decreased to $108,000 from $9,151,000 in 1992. Net loss was $3,886,000, as compared to a net income of $738,000 for the previous period.
 Revenue for the year decreased 47 percent to $7,201,000 vs. $13,586,000 for the same period the previous year. Net loss was $4,911,000, as compared to a net income of $353,000 in the prior period.
 The company attributes the majority of the $4,911,000 loss to a significant decrease in the number of new films released in fiscal year 1993 and a $1,300,000 one-time valuation write-down of its investment in Guild Entertainment Central Europe Kft. (GECE).
 The decrease in the number of new films released in fiscal year 1993 is primarily due to the restructuring of the company's business plan. Due to a shift in the foreign market place, "A" films released by a major studio in the United States are in ever-increasing demand from foreign buyers. To this end, the company has formed an alliance with Twentieth Century Fox (Fox) pursuant to which Fox has agreed to distribute certain pre-approved films in all domestic media. This arrangement began with the domestic release by Fox of "Best of the Best 2."
 GECE, a Hungarian company which specializes in distribution of film rights in Eastern Europe, reported significant losses and negative shareholders' equity for the period ended December 1992. GECE has not provided the company with the information to which it is contractually entitled and which would allow the company to ascertain whether the reported numbers accurately reflect the realizability of the company's investment. The absence of this information has forced the company to accept a complete valuation write-down. The company intends to pursue its rights through legal channels, if required, to protect its investment.
 "Despite the disappointing results for fiscal year 1993, the company is aggressively pursuing the acquisition of `A' and `A+' films and is exploring methods to directly or indirectly procure financing for such films," said Peter E. Strauss, chairman and chief executive officer. "The company has been pleased with the results of `Best of the Best 2' distributed domestically by Twentieth Century Fox and believes that the alliance with a major studio will prove to be a key component to the company's business strategy."
 Headquartered in Los Angeles, International Movie Group, through its wholly owned subsidiary, The Movie Group Inc., specializes in the distribution of English-language motion pictures to some 50 countries. The company has distributed to date 35 motion pictures.
 INTERNATIONAL MOVIE GROUP
 Summary of Income Data
 Three months 12 months
 ended June 30, ended June 30,
 1993 1992 1993 1992
 Revenues $107,600 $9,150,948 $7,201,303 $13,585,749
 Operating costs 3,528,352 6,995,379 10,410,809 11,345,814
 Operating income
 (loss) (3,420,752) 2,155,569 (3,209,506) 2,239,935
 Interest expense 592,120 872,644 2,314,717 2,807,258
 Interest income
 and other 142,851 403,681 789,934 1,612,240
 Income (loss)
 before taxes (3,870,021) 1,686,606 (4,734,289) 1,044,917
 Income taxes 15,714 949,067 176,789 692,391
 Net income (loss)($3,885,735) $737,539 ($4,911,078) $352,526
 Net income (loss)
 per share
 -- primary ($0.41) $0.08 ($0.52) $0.04
 Net income (loss)
 per share
 -- fully diluted ($0.41) $0.06 ($0.52) $0.04
 -0- 10/18/93
 /CONTACT: Steve Richards, 310-556-2830/
 (IMV)


CO: International Movie Group ST: California IN: ENT SU: ERN

JL-LS -- LA016 -- 3115 10/18/93 06:00 EDT
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Date:Oct 18, 1993
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