Kings Road Entertainment Inc. Transaction With Immediate Entertainment Group Inc. Terminated by Mutual Consent

Business Wire, Sept 17, 1999

LOS ANGELES--(BUSINESS WIRE)--Sept. 17, 1999--

Kings Road Entertainment Inc. (Nasdaq SmallCap Market:KREN) Friday announced that it has terminated negotiations, by mutual consent, with Immediate Entertainment Group Inc. (Nasdaq:IEGP) in connection with a potential merger or an acquisition of assets.

The parties were unable to agree on valuations, the negotiations of which were complicated, in part, by the most recent reported results of operations of IEGP.

KREN expects to negotiate with IEGP potential joint ventures and other joint participations in projects of mutual interest. The ongoing projects will likely include IEGP's providing music content programming to STAR TV, a Switzerland-based TV cable channel, in which KREN owns a 19 percent interest.

KREN also announced that it expects to file its Form 10-KSB for the fiscal year ended April 30, 1999, with the U.S. Securities and Exchange Commission within the next 10 days.

According to David W. Dube, chairman of KREN: "Obviously, the potential combinations which were being negotiated with IEGP proved a time-consuming distraction, and we are disappointed with the conclusion.

"However, now that the protracted discussions are behind us, we are optimistic about our future and expect a productive working relationship with IEGP. We intend to continue our focus on our core film business, which has been successful for the company in the past."

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.