Corporate | 16 August 2001 18:43

Senator Entertainment AG english

Corporate-News announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Numerous queries have led us to make a direct statement regarding the content of the Prior report. The subject is the purchase of the firm, Central, in 1999 after Senator had sold film rights to the company in the same year. These are in fact two distinctly independent transactions. There were no plans to takeover Central at the time the film rights were sold. The reorientation of Central’s owner in the same year led him to put the company up for sale. Senator made a successful bid for the company. We have always dealt with this transaction openly, especially given the close proxymity of both transactions. We would like to refer to our annual report for 1999. Sales to various license rights dealers in 2000 have also provoked skepticism. The names of those involved may not be revealed due to confidentiality agreements which remain in force. These concern valuable transactions for which, as is common in the industry, a double-digit million figure was advancend in the first quarter of this year. We have no reason to doubt the full performance of this transaction as agreed and refer to the fact that our auditors have confirmed the value of these receivables. The receivables still due are only a fraction of the DM 161 million figure cited by Prior. Senator considers itself a growth enterprise with ambitous goals. Already last year we pointed out that we intended to catalyze our growth this year by means of borrowing. The short term debt of DM 147 million mentioned in the report, and taken from our first quarter report, has been invested in corresponding film exploitation rights. We regret the drop in price which our shares have had to endure on account of anonymous disposals since last Thursday and the Prior Börse report from last Friday. Berlin, August 15, 2001 The Management end of message, (c) DGAP 16.08.2001