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Senator rejects Prior´s repeated false reports
Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement.
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Rectification:
Due to the tendentious and incorrect reporting by the Prior Börse on 17 April 2002, Senator feels compelled to issue the following rectifications.
It is incorrect that Senator has omitted mention of "its clients" in the "ominous item world sales". We have named our customers at numerous events (amount others, Sony/ Columbia Tristar, Universal, Miramax, Paramount, Film Four, Sogepaq, Instituto Luce, Gaga, New Metro, Metropolitan, Planeta, Nexo). This information would also have been given to the Prior Börse if they had ever asked Senator for it.
The next point is the repeatedly alleged resignation by Arthur Andersen of its engagement. As has already been explained in the press statement of 25 March 2002, issued in agreement with Arthur Andersen, there was never an actual engagement of Arthur Andersen for the annual financial statements for 2001 which could have been resigned. Rather it was due to capacity planning at Arthur Andersen that BDO was finally appointed, in compliance with the legal requirements, contrary to the false assertions of Prior Börse.
Also their comments regarding valuation of the CinemaxX holding are in error since according to IAS, it is the so-called value in use, not CinemaxX´s share price which is relevant. This is determined by Senator´s future benefits from the holding. Senator has demonstrable advantages from the cooperation with CinemaxX, esp. in marketing. In addition, Senator films are running demonstrable well above average in the cinemas of multiplex market leader CinemaxX due to their joint efforts. The resulting higher revenues and earnings esp. in favor of CinemaxX, justify the confirmed value in use.
Even the CinemaxX goodwill depreciation complies with the IAS. The 20-year depreciation period is based on the average lease terms for the cinemas. Moreover, Senator has already taken a precautionary fair value depreciation on the holding for 2000.
The statement on the further goodwill of EUR 8.5 million is incomprehensible ("production companies from which no one hears anything"). One of these companies, X-Film Creative Pool GmbH ("Lola rennt") opened this year´s Berlinale with Tom Tykwers´ film "Heaven".
The criticism of the EUR 57 million is incomprehensible. The average term of the receivables of 145 days is better than the industry average. In addition, more than half of the receivables posted in the 2001 financial statements have been paid.
The facts regarding Senator´s film stocks have also been incorrectly reported. The EUR 181 million reported concludes other intangible assets. In fact, there was also an increase in film licenses but, not due to "depreciation modalities" but because of numerous extensive new investments (EUR 183 million) in own international production. With respect to depreciation modalities, it is more important to note that Senator is well known for having one of the most conservative methods, even after the actual adjustment to the depreciation rate for the actual revenues in the 2001 annual financial statements.
The liabilities due to banks comprise in part project financing where recourse to Senator is completely precluded. Even these liabilities have since been retired.
With respect to the presentation relating to the media fund (Deveco), Senator has already repeatedly reported prior to the fund company no longer belonged to the Senator Group before the IPO. The procedure was also described among other places in the issue prospectus. These are concluded and have no further impact on the Senator Group. The only litigation pending is against two suing parties which Senator had already initiated in 1991.
Furthermore the past fund model which also serves as the model for all film production companies, has been one of the most successful on the German market, also for investors. In the meantime, the civil suits initiated by the defendants have been dismissed. The investigations of Supervisory Board chair Michael Krohne have also been dismissed without qualification. In a later misdemeanor (non-penal action) for the same case, Mr. Krohne agreed to a legally very questionable dismissal, this time with acceptance of a qualification in order to avoid time consuming litigation.
The reports of the Prior Börse in connection with the pending civil litigation suggest that it allows itself to be instrumentalized by the defendants by obviously adopting prejudiced information which has been supplied by the defendants to serve their own interests.
Karl W. Homburg Head of IR/Corporate Communications phone: +49 30 88091-612 fax: +49 30 88091-616 mailto: investor@senator.de |
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