euro adhoc: Advanced Medien AG / US Bank files lawsuit against German subsidiary of Advanced Medien AG (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

Advanced Medien AG (securities identification number 509300) today announced that US-based Comerica Bank filed a lawsuit against Advanced Licencing GmbH, a subsidiary of Advanced Medien AG, with a US court of law. The lawsuit for payment of USD 2,087,000 is based on loans granted by Comerica Bank to Unified Film Organization LLC, Los Angeles (UFO), a 51% subsidiary of Advanced Medien AG, for the production of motion pictures.

Advanced Medien AG is not directly affected by the action because it is not liable for trade accounts payable of its subsidiary Advanced Licencing GmbH, which since December 21, 2002, has been operating under its previous name of TSC Technische Systeme Consult GmbH. Furthermore, Advanced Medien AG is not liable vis-à-vis Comerica Bank for bank liabilities of its subsidiary UFO. The management board does not believe that the lawsuit filed by Comerica Bank against Advanced Licencing/TSC will jeopardize Advanced Medien AG.

Four of the six film productions in question, which account for USD 1.7 million of the lawsuit, were cancelled by Advanced Licencing in October 2002 because UFO had been unable to deliver them on time. At the same time, Advanced Licencing demanded the repayment of payments on account in the amount of USD 300,000.

Comerica Bank claims payment of USD 387,000 for the remaining two film productions. The films have already been delivered and accepted. Advanced Licencing paid 70% of the agreed licensing fees of USD 1.22 million. According to the records of Advanced Licencing GmbH, the amount outstanding is therefore only USD 367,000.
An agreement regarding this remaining liability was reached in settlement negotiations with Comerica Bank in 2002. However, due to the cancellation of the four other film licencing agreements that had not been delivered, Comerica Bank later refused to sign the settlement agreement although Advanced Medien believes that a binding agreement had already been reached.

The management board

Further inquiry note:
Susanne Rehm
Tel.: +49(089)613805-0
Tel: +49(0)89-6138050
FAX: +49(0)89-61380555

end of announcement euro adhoc

Emittent: Advanced Medien AG
Keltenring 11
DE-82041 Oberhaching
Tel: +49(0)89-6138050
FAX: +49(0)89-61380555
ISIN: DE0005093009
WKN: 509300
Indizes: Nemax All Share
Börsen: free trade Baden-Württembergische Wertpapierbörse, Bayerische Börse, Berliner Wertpapierbörse, Börse Düsseldorf, Niedersächsische Börse zu Hannover; Neuer Markt Frankfurter Wertpapierbörse
Branche: Media
Sprache: Englisch