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KUSHNER-LOCKE AND RYSHER ENTERTAINMENT REVEALS PLANS TO COMBINE

 KUSHNER-LOCKE AND RYSHER ENTERTAINMENT REVEALS PLANS TO COMBINE
 LOS ANGELES, Calif., May 26 /PRNewswire/ -- Two of Hollywood's leading independent television production and distribution companies, Kushner-Locke (NASDAQ: KLOC), publicly traded on NASDAQ, and privately held RYSHER Entertainment Inc., disclosed today that they have reached an agreement in principal to combine.
 The announcement, made today in a joint statement by Kushner-Locke co-chairmen Peter Locke and Donald Kushner and RYSHER co-founders Keith Samples and Timothy Helfet, stated it anticipates that closing will be completed prior to Kushner-Locke's Sept. 30 year end.
 In the transaction Kushner-Locke will acquire all of the outstanding capital stock of Studio City, Calif.-based RYSHER Entertainment Inc. and related entities RYSHER Distribution Inc. and RYSHER Sales Services, Inc. (RYSHER) in exchange for Kushner-Locke stock. Kushner-Locke will thereafter change its corporate name. The two companies will operate as subsidiaries of the newly named company. The purchase price is based on a multiple of five times RYSHER's 1992 net earnings after taxes. Additionally, Kushner-Locke common stock may be issued under a three- year earn out provision based on RYSHER's average after tax net income for the three years ending Dec. 31, 1994.
 Consummation of the transaction is subject to completion of due diligence by both parties, the execution of a mutually satisfactory definitive agreement, receipt of all necessary third party consents and other customary conditions.
 The Kushner-Locke company is engaged primarily in the production and international distribution of television series and television movies ("First and 10," "Sweating Bullets," "Tennessee Williams' 'Sweet Bird of Youth,'" starring Elizabeth Taylor, etc.).
 RYSHER's focus has been on the production and domestic distribution of television programs including the popular NBC sitcom, "Saved by the Bell" and its new fall, 22-episode, hour-action series "Highlander" based on the hit motion pictures which starred Christopher Lambert and Sean Connery.
 According to Kushner-Locke co-chairmen Peter Locke and Donald Kushner, "The synergism of our two companies offers us a dynamic opportunity to provide a highly desirable, vertically integrated, global production/distribution entity. We will have the capability of generating and distributing programming both in the U.S. and abroad, with foreign and domestic broadcasters as partners."
 "When Tim and I started RYSHER, our goal was to build a company that we could take into the public financing area," said Keith Samples, RYSHER's president. "Pooling our operation with Kushner-Locke allows us to accomplish that goal much sooner than otherwise would have been possible. At the same time, it allows us to join forces with a complementary company run by people we like and respect."
 Both companies have been aggressive players in the burgeoning international co-production arena as well as producing directly for various U.S. outlets. Kushner-Locke recently announced a pick-up for a third season of the CBS late-night hit "Sweating Bullets." The second season of "Sweating Bullets" was produced in Israel as a Canadian- Israeli co-production and was part of a first of its kind public $7.3 million financing issue in Israel. The first season of "Sweating Bullets" was produced as a Canadian-Mexican co-production.
 This fall, RYSHER will premiere 22 hours of the action series "Highlander" in the U.S. syndication marketplace via a partnership with the French production company GAUMONT and Italy's Silvio Berlusconi Communications. The program is based on the theatrical movie and marks the first time that an action-adventure series originated by a European production company has managed to clear the U.S. first-run syndication marketplace. RYSHER is given much of the credit for bringing the project together through its extensive contacts and relationships in Europe.
 Formed in 1991 by Keith Samples and Timothy Helfet, RYSHER has quickly made a name for itself in the U.S. syndication marketplace. The company will have four syndicated series on the air this fall. In addition to "Highlander," RYSHER will continue with the successful "Saved by the Bell," series, an NBC-Productions half-hour sitcom; "Captain N" an animated off-network strip; and "Uptown Comedy Club," a late-night sketch comedy hour.
 Additionally, RYSHER has been involved in the production and U.S. distribution for four made-for-television movies in a partnership with France's Canal+ and Cameras Continentales. The four films were based on material written by best-selling American author Mary Higgins Clark and star Kate Nelligan, Perry King, Daniel J. Travanti, Kim Cattrall and Jennifer Beals.
 In addition to "Sweating Bullets," Kushner-Locke's current television programming includes "Father and Son," an NBC movie-of-the- week starring Lou Gossett, Jr., Blair Underwood and Rae Dawn Chong, currently in production; and "Double Cross," a mini-series in development for NBC based on the best-selling novel detailing the life and times of mobster Sam Giancana and "Diane Giacalone: The John Gotti Story" about New York's notorious "Dapper Don" being prepped as a movie for CBS, among other projects.
 -0- 5/26/92
 /NOTE: For additional information, Peter Locke may be contacted at Kushner-Locke, 310-445-1111; Keith Samples may be contacted at RYSHER, 818-508-3455; Michael Gerety or Dick Winters may be contacted at Hanson & Schwam, 310-557-1199/
 /CONTACT: Donald Kushner, CEO of Kushner-Locke, 310-445-1111; or William F. Coffin or John H. Shaw of Financial Relations Board, 818-783-2400, for Kushner-Locke/
 (KLOC) CO: Kushner-Locke; RYSHER Entertainment Inc. ST: California IN: ENT SU: TNM


KJ -- LA008 -- 3619 05/26/92 09:02 EDT
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Date:May 26, 1992
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