Kings Road Entertainment Inc. Forms Joint Venture Company With Merchant Ivory Productions

Business Wire, April 28, 1999

LOS ANGELES--(BUSINESS WIRE)--April 28, 1999--

Kings Road Entertainment Inc. (Nasdaq Small Cap Market:KREN)(Frankfurt:KRE) Wednesday announced that it has created a joint venture company with Merchant Ivory Productions.

The new company, Merchant Ivory Film Distribution LLC, will be based in New York and has been formed for the worldwide distribution of various visual entertainment material.

Merchant Ivory Films will initially be owned 75% by Merchant Ivory Productions and 25% by Kings Road Entertainment. The Board of the new venture will consist of three directors appointed by Merchant Ivory Productions and two directors appointed by Kings Road Entertainment Inc.

It is anticipated that the joint venture will continue building upon their respective film libraries and will seek high quality completed projects from other film production companies for distribution.

On May 28, 1999, Merchant Ivory's award winning film "Eternity and a Day," produced and directed by Votheo Angelopoulis and starring Bruno Ganza and Isabel Renaulda, is being premiered in New York at selected cinemas. The film was a Palme d'Or winner at the Cannes Film Festival in 1998.

Kings Road Entertainment was founded in 1984 as an independent production and distribution company. Based in Los Angeles, the company produces theatrical, direct-to-video and cable motion pictures. Its credits include "All of Me," "The Big Easy," "Jacknife" and "The Best of Times." Kings Road is located at 1901 Avenue of the Stars, Suite 1545, Los Angeles, Calif. 90067.

In November 1998, Kings Road announced that it had entered into a non-binding letter of intent with Immediate Entertainment Group Inc. to merge or acquire 100% of the assets of Immediate. Immediate Entertainment is a diversified entertainment holding company that provides services including music production, audio recording, CD manufacturing, film soundtracks and script development.

Merchant Ivory Productions is an independent motion picture production company that operates on three continents. With its base in New York, Merchant Ivory maintains integrated operations in London, Paris and Bombay.

Merchant Ivory's credits include "The Europeans," "The Bostonians," "Heat and Dust," "A Room With A View," "Mr & Mrs Bridge," "The Remains of the Day," "Howards End" and "Surviving Picasso."

For 35 years, Ismail Merchant and James Ivory have controlled Merchant Ivory and they have been one of the industry's most successful producer/director teams.

Except for historical information, this news release may include forward looking statements that involve risks and uncertainties including, but not limited to, quarterly fluctuations in results, the management of growth, competition and other risks detailed in the company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein.