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MGM REPORTS FIRST QUARTER RESULTS

 MGM REPORTS FIRST QUARTER RESULTS
 CULVER CITY, Calif., May 15 /PRNewswire/ -- MGM-Pathe Communications


Co. (NYSE: MGM) today reported results for the first quarter ended March 31, 1992.
 Total revenues for the quarter were $298.9 million, with an operating loss of $14.4 million. The total net loss was $54.7 million, or $.91 per share. In the prior-year period, total revenues were $292.5 million, with an operating loss of $24.6 million. The total net loss was $100.6 million, or $1.68 per share.
 Co-Chairmen and Co-Chief Executive Officers Alan Ladd Jr. and Dennis Stanfill stated, "We are making progress in our efforts to financially stabilize the company, while creating an attractive environment for talent at MGM. The recent acquisition of MGM stock ownership by a subsidiary of Credit Lyonnais is a positive step as we go forward in rebuilding one of the industry's great names."
 The reduced loss in the current-year quarter was attributable in part to lower writedowns on feature films and television programming, reduced general corporate expenses and the absence of significant reserves which had been taken in the prior-year period. Such reserves totaled $44.8 million and were recorded, because of uncertainties as to recoverability and collectibility, on investments and affiliate loans effected by prior management.
 For the quarter, the company incurred $36.5 million in interest expense vs. $29.2 million a year earlier. The increase in net interest expense was because of increased borrowing under the company's lines of credit.
 Following favorable resolution during early 1992 of certain significant litigation in Delaware with prior management, the company's development and production activities have increased as additional projects have been made available to the company. However, because of the long lead time required for the development and production of feature films, the effects of the foregoing will not be fully reflected in the company's results of operations until 1993 and beyond.
 MGM is involved in the worldwide production and distribution of motion picture and television programs and operates theater chains in Europe.
 MGM-PATHE COMMUNICATIONS CO.
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 (Unaudited)
 Quarter Ended 13 Weeks Ended
 March 31, 1992 March 30, 1991
 Revenues:
 Feature films and
 television programming $243,520 $237,879
 Theater operations 55,374 54,601
 Total revenues 298,894 292,480
 Expenses:
 Feature films and television
 programming operations 253,640 254,227
 Theater operations 50,092 47,283
 General corporate 9,536 15,546
 Total expenses 313,268 317,056
 Operating loss (14,374) (24,576)
 Other income (expense):
 Interest expense, net (36,524) (29,178)
 Interest and other income
 (expense), net (324) 4,373
 (Reserves) recoveries on
 investments and loans to
 affiliates 3,500 (44,804)
 Total other income (expense) (33,348) (69,609)
 Loss before income taxes (47,722) (94,185)
 Provision for income taxes (6,969) (6,436)
 Net loss ($54,691) ($100,621)
 Net loss per common share ($.91) ($1.68)
 Weighted average common shares
 outstanding 60,000 60,000
 -0- 5/15/92
 /CONTACT: Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for MGM-Pathe Communications/
 (MGM) CO: MGM-Pathe Communications Co. ST: California IN: ENT SU: ERN


KJ-JL -- LA004 -- 0602 05/15/92 09:03 EDT
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Date:May 15, 1992
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