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MGM REPORTS FIRST QUARTER 1993 RESULTS

 CULVER CITY, Calif., May 17 /PRNewswire/ -- Metro-Goldwyn-Mayer Inc. today reported improved results for the first quarter ended March 31, 1993, reducing its net loss compared with the year-earlier period.
 For the first quarter, the company reduced its net loss to $51.2 million, compared with $87.4 million a year ago. Revenues were $196.0 million in the first quarter vs. $298.9 million a year earlier.
 The first-quarter 1993 net loss would have been reduced further except for an extraordinary loss of approximately $9.8 million on repurchases of senior notes during the first quarter. The repurchases accelerated the recognition of discount related to the notes which would otherwise have been recognized over the remainder of 1993. As a result of these repurchases, the company anticipates lower interest costs in future periods. The prior-year's first quarter included a special one-time charge of $33.0 million, related to the cumulative effect of the company's adoption of a new accounting method for income taxes.
 The company's first quarter 1993 performance reflected a decrease in feature film revenues due to quarter-to-quarter differences in the timing of theatrical releases and availability of product for home video and pay television markets. In the prior-year's quarter, the company earned significant revenues from the domestic home video release of "Thelma and Louise," and certain other titles.
 The reduction in television programming revenues, which occurred with essentially no effect on the company's operating results, resulted from a strategic decision to refocus the company's position in the television programming market. Only one network series was on the air in the 1993 first quarter, compared with four series in the year-earlier period.
 Theater revenues decreased in the first quarter, compared with the prior year, primarily due to differences in foreign currency exchange rates. Theater admissions were comparable between quarters, while average admission prices increased slightly. On an overall basis, the company's theater operations remained profitable, despite the difficult economic conditions, and MGM is continuing to invest in strategically located multiplex theaters in Europe in order to meet the changing market and demographic patterns.
 "We have also accelerated MGM's development and production activities with the support of Credit Lyonnais Bank Nederland," said Co-Chairmen and Co-Chief Executive Officers Alan Ladd Jr. and Dennis Stanfill.
 However, they indicated that the effects of these increased activities will not be immediately reflected in the company's results due to the long lead times required for development and production of feature films.
 MGM is involved in the worldwide production and distribution of motion picture and television programs and operates theater chains in Europe.
 METRO-GOLDWYN-MAYER INC.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 (Unaudited)
 Quarter Ended Quarter Ended
 March 31, March 31,
 1993 1992
 Revenues:
 Feature films and television
 programming operations $149,150 $243,520
 Theater operations 46,867 55,374
 Total revenues 196,017 298,894
 Expenses:
 Feature films and television
 programming operations 161,801 255,193
 Theater operations 42,119 50,092
 General corporate administration 10,677 9,536
 Total expenses 214,597 314,821
 Operating loss (18,580) (15,927)
 Other income (expense):
 Interest expense, net (26,111) (36,359)
 Interest and other income
 (expense), net 3,355 (3,235)
 (Reserves) recovery on investments
 and affiliate advances, net --- 3,500
 Total other income (expense) (22,756) (36,094)
 Loss before income taxes, cumulative
 effect of accounting change and
 extraordinary items (41,336) (52,021)
 (Provision) benefit for income taxes (44) (2,336)
 Loss before extraordinary items
 and cumulative effect of
 accounting change (41,380) (54,357)
 Extraordinary items (9,827) ---
 Cumulative effect at Jan. 1, 1992
 of income tax accounting change --- (33,036)
 Net loss ($51,207) ($87,393)
 Net loss per common share
 Loss before extraordinary items
 and cumulative effect of
 accounting change ($.69) ($.91)
 Extraordinary items (.16) ---
 Cumulative effect at Jan. 1, 1992
 of income tax accounting change --- (.55)
 Net loss ($.85) ($1.46)
 -0- 5/17/93
 /CONTACT: Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for MGM/


CO: Metro-Goldwyn-Mayer Inc. ST: California IN: ENT SU: ERN

JL-BP -- LA015 -- 9181 05/17/93 12:08 EDT
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Date:May 17, 1993
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