IM Internationalmedia AG Financial Highlights of Interim Report for the period from

1. IM Internationalmedia AG Financial Highlights of Interim Reportfor the period from January 1 to June 30, 2003

2. in million euros Jan-Jun 2003 Jan-Jun 2002 delta delta in percent Revenue Gross Profit EBITA Result after tax EPS 88.9 12.4 - 8.5 -12.6 - 0.39 • 94.3 • 14.3 • - 13.4 • - 18.0 • - 0.58 - 5.4 - 1.9 + 4.9 + 5.4 + 0.19 - 6 - 13 +36 + 30 + 33 Emphasized Financial Data

3. Revenues Jan-Jun 2003 Comments in million euros • Vast majority of revenues continues to derive from minimum guarantees on four released movies (DARK BLUE, THE LIFE OF DAVID GALE, BASIC, NATIONAL SECURITY) • Significant profit participations in IRIS, THE WEDDING PLANNER and K-19: THE WIDOWMAKER • Library revenues mainly from the Largo Film Library • Financing Fees mainly from MOOSEPORT and LAWS OF ATTRACTION 88.9 2.0 2.7 7.7 76.5 Total Minimum guarantees Overages Library Financing Fees Revenue Structure

4. Comments Consolidated Income Statement Six-month report • Gross margin slightly decreases to 13.9 percent • Cost cutting program is providing good results although Q2/2003 includes provision for ME AGAIN. • Through the goodwill write-off last year IM has a now a streamlined balance sheet assuring significantly lowered amortization charges during the years to come. Jan 1 to Jan 1 to [in K €] Jun 30, 2003 Jun 30, 2002 Revenues 88,922 94,319 Cost of goods sold -76,547 -80,008 Gross profit 12,375 14,311 Project development costs -10,494 -7,034 Distribution costs -296 -1,883 General administration costs -9,351 -16,602 Other operating income 442 177 Other operating expenses -1,173 -2,326 Goodwill amortization -776 -2,858 Operating result (EBIT) -9,273 -16,215 Result at equity -817 -770 Financial result -1,225 205 Result before tax -11,315 -16,780 Taxes on income and profits -1,271 -1,217 Result after tax -12,586 -17,997 Undiluted earnings per share (in €) -0.39 -0.58 Diluted earnings per share (in €) -0.39 -0.58 Income Statement

5. Comments Consolidated Income Statement Six-month report • Distribution costs have been reduced by 84 percent, mainly due to the operational start of I.S. Film Distribution. • Overhead costs at 9.4 million euros show a reduction of 44 percent, significant benefits of the extensive cost cutting program. • The result at equity includes the newly established distribution joint-venture with a result of approx. € -550k. • The financial result includes interest on the Initial Entertainment credit line. Jan 1 to Jan 1 to [in K €] Jun 30, 2003 Jun 30, 2002 Revenues 88,922 94,319 Cost of goods sold -76,547 -80,008 Gross profit 12,375 14,311 Project development costs -10,494 -7,034 Distribution costs -296 -1,883 General administration costs -9,351 -16,602 Other operating income 442 177 Other operating expenses -1,173 -2,326 Goodwill amortization -776 -2,858 Operating result (EBIT) -9,273 -16,215 Result at equity -817 -770 Financial result -1,225 205 Result before tax -11,315 -16,780 Taxes on income and profits -1,271 -1,217 Result after tax -12,586 -17,997 Undiluted earnings per share (in €) -0.39 -0.58 Diluted earnings per share (in €) -0.39 -0.58 Income Statement

6. Comments Consolidated Balance Sheet: Assets Assets Jun 30, 2003 Dec 31, 2002 • Cash of 10.5 million euros lower than last year’s ending balance was mainly caused by investments into pre-production due to a high number of upcoming greenlights such as AVIATOR, ALEXANDER and other films. The reduction also include a reclassification of marketable securities to long-term securities. [in K €] 1 Current assets Cheques, cash in hand, central bank and bank balances 10,543 47,813 Other marketable securities 0 8,632 Trade accounts receivable 64,209 128,972 Film development costs 42,274 34,622 Prepaid expenses 409 353 Other current assets 10,040 18,861 Total current assets 127,475 239,253 Non-current assets Fixed assets 4,931 10,858 Film and license assets 381,883 299,427 Goodwill 12,620 14,575 Other intangible assets 13 19 Investments in associated companies 279 0 Loans to associated companies 1,465 1,847 Other securities 5,958 0 Deferred tax assets 578 4,800 Total non-current assets 407,727 331,526 Total assets 535,202 570,779 1) audited Balance Sheet

7. Comments Consolidated Balance Sheet: Assets Assets Jun 30, 2003 Dec 31, 2002 • Receivables are reduced due to payments of minimum guarantees • Increase in film assets due to the capitalization of TERMINATOR 3: RISE OF THE MACHINES. The amortization starts in 3rd quarter 2003. [in K €] 1 Current assets Cheques, cash in hand, central bank and bank balances 10,543 47,813 Other marketable securities 0 8,632 Trade accounts receivable 64,209 128,972 Film development costs 42,274 34,622 Prepaid expenses 409 353 Other current assets 10,040 18,861 Total current assets 127,475 239,253 Non-current assets Fixed assets 4,931 10,858 Film and license assets 381,883 299,427 Goodwill 12,620 14,575 Other intangible assets 13 19 Investments in associated companies 279 0 Loans to associated companies 1,465 1,847 Other securities 5,958 0 Deferred tax assets 578 4,800 Total non-current assets 407,727 331,526 Total assets 535,202 570,779 1) audited Balance Sheet

8. Comments Consolidated Balance Sheet: Shareholders‘ equity and liabilities • Payment of liabilities due to banks because of theatrical release in previous periods. In first half year 2003 no new bank loans were closed. Shareholders' equity and liabilities Jun 30, 2003 Dec 31, 2002 [in K €] 1 Current liabilities Short-term bank loans and overdrafts 139,576 191,596 Advanced payments received 162,578 61,853 Trade accounts payable 3,934 5,134 Income tax payable 3,781 4,480 Other current accrued liabilities 21,916 83,906 Other current liabilities 8,333 257 Total current liabilities 340,118 347,226 Non-current liabilities Long-term bank loans and overdrafts 9,963 29,182 Deferred tax liabilities 14,692 18,500 Other long-term accrued liabilities 23,926 2,904 Total non-current liabilities 48,581 50,586 Shareholders' equity Subscribed capital 31,950 31,950 Capital reserves 263,093 263,093 Net retained earnings -92,510 -97,874 Currency translation adjustments (CTA) -56,030 -24,202 Total shareholders' equity 146,503 172,967 Total shareholders' equity and liabilities 535,202 570,779 1) audited Balance Sheet

9. Comments Consolidated Balance Sheet: Shareholders‘ equity and liabilities • Advanced payments received increased due to TERMINATOR 3: RISE OF THE MACHINES, although sales revenue recognition will be in 3rd quarter 2003. • Decrease of shareholders’ equity due to • negative result after tax • negative Currency Translation Adjustments from US dollar into Euro. Shareholders' equity and liabilities 1 [in K €] Jun 30, 2003 Dec 31, 2002 Current liabilities Short-term bank loans and overdrafts 139,576 191,596 Advanced payments received 162,578 61,853 Trade accounts payable 3,934 5,134 Income tax payable 3,781 4,480 Other current accrued liabilities 21,916 83,906 Other current liabilities 8,333 257 Total current liabilities 340,118 347,226 Non-current liabilities Long-term bank loans and overdrafts 9,963 29,182 Deferred tax liabilities 14,692 18,500 Other long-term accrued liabilities 23,926 2,904 Total non-current liabilities 48,581 50,586 Shareholders' equity Subscribed capital 31,950 31,950 Capital reserves 263,093 263,093 Net retained earnings -92,510 -97,874 Currency translation adjustments (CTA) -56,030 -24,202 Total shareholders' equity 146,503 172,967 Total shareholders' equity and liabilities 535,202 570,779 1) audited Balance Sheet

10. Consolidated Balance Sheet – Bank Loans Comments • Lowest level of outstanding bank loans in five quarters • Film loans are generally non-recourse to IM and solely pledged by the film project • Initial Entertainment film assets (mainly Traffic, Ali, and Gangs of New York) are backing the bank loan; non recourse of Initial Entertainment liabilities against IM assets • The Largo film library loan is backed by the library assets • No new bank loans were closed in first six month 2003 in million euros 221 216 198 178 150 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 150 133 6 Non-recoursefinancing Largo Asset backed Bank liabilities Jun 30, 2003 Balance Sheet Analysis

11. Consolidated Cash Flow Statement Comments Six-month report • Depreciation for films stays at a nearly the same level compared to same quarter last year • The positive operating Cash Flow is mainly driven by depreciation and by a better performance of Working Capital due to payments of minimum guarantees and advanced payments received for TERMINATOR 3 compared to last period. • Reclassification of securities Jan 1 to Jan 1 to Jan 1 to Jun 30, 2003 Jun 30, 2003 [in K €] Net profit/loss -12,586 -17,997 Depreciation and amortization 69,123 80,644 Changes in non-cash accrued liabilities 17,596 32,613 Changes in non-cash deferred tax assets 4,222 -17,744 Changes in inventories -7,651 -7,415 Changes in trade accounts receivable and other assets 77,685 -50,422 Changes in other short-term assets -56 -238 Changes in trade accounts payable -1,267 179 Changes in other liabilities 57,143 -30,520 Cash flows from operating activities 204,209 -10,90 Investments in intangible assets -172,031 -83,309 Investments in fixed assets -39 -1,169 Financial investments -6,797 -912 Receipts from disposals of assets 4,669 15 Cash flows from investing activities -174,198 -85,375 Changes in financial liabilities -71,239 14,319 Cash flows from financing activities -71,239 14,319 Effect of foreign currency exchange rate changes -4,674 -8,310 Effect of changes in consolidated group on cash and cash equivalents 0 8,927 Net changes in cash and cash equivalents -45,902 -81,339 Cash and cash equivalents at beginning of period 56,445 148,040 Cash and cash equivalents at end of period 10,543 66,701 Cash Flow Analysis

12. Consolidated Cash Flow Statement Comments Six-month report • Investment level increases significantly due to capitalization of TERMINATOR 3: RISE OF THE MACHINES • The positive Free Cash Flow was used to service debt Jan 1 to Jan 1 to Jan 1 to Jun 30, 2003 Jun 30, 2003 [in K €] Net profit/loss -12,586 -17,997 Depreciation and amortization 69,123 80,644 Changes in non-cash accrued liabilities 17,596 32,613 Changes in non-cash deferred tax assets 4,222 -17,744 Changes in inventories -7,651 -7,415 Changes in trade accounts receivable and other assets 77,685 -50,422 Changes in other short-term assets -56 -238 Changes in trade accounts payable -1,267 179 Changes in other liabilities 57,143 -30,520 Cash flows from operating activities 204,209 -10,90 Investments in intangible assets -172,031 -83,309 Investments in fixed assets -39 -1,169 Financial investments -6,797 -912 Receipts from disposals of assets 4,669 15 Cash flows from investing activities -174,198 -85,375 Changes in financial liabilities -71,239 14,319 Cash flows from financing activities -71,239 14,319 Effect of foreign currency exchange rate changes -4,674 -8,310 Effect of changes in consolidated group on cash and cash equivalents 0 8,927 Net changes in cash and cash equivalents -45,902 -81,339 Cash and cash equivalents at beginning of period 56,445 148,040 Cash and cash equivalents at end of period 10,543 66,701 Cash Flow Analysis

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