CIT Arranges $245 Million in Financing for Alcon Entertainment

Business Wire,  May 15, 2008  

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Serves as Sole Lead Arranger and Co-Bookrunner in Financing of 15 Films to Be Distributed by Warner Bros.

NEW YORK & LOS ANGELES -- CIT Group Inc. (NYSE: CIT), a leading global commercial finance company, today announced that it has successfully arranged the financing for the production of 15 films over the next five years for Alcon Entertainment. The films will be distributed domestically through Warner Bros. CIT Communications, Media & Entertainment, a unit of CIT, acted as sole lead arranger and co-bookrunner in the $185 million senior secured credit facility for Alcon Entertainment and also served as sole lead arranger of $60 million in mezzanine financing. JP Morgan Chase acted as co-bookrunner and administrative agent on the senior secured credit facility.

"We are very pleased to have completed this transaction with Alcon Entertainment and our partner JP Morgan Chase," said Wade Layton, Managing Director of CIT Communications, Media & Entertainment. "Alcon's management team's proven ability to manage risk along with their unique relationship with Warner Bros. were key attributes of the transaction that are reflected in the structure. We look forward to continuing to build upon this relationship in the coming years."

Alcon co-presidents and CEOs Broderick Johnson and Andrew Kosove said, "The CIT team has been great to work with on this transaction. CIT developed an inventive structure that is a great fit for Alcon Entertainment. The fact that CIT and JP Morgan Chase were able to facilitate such a deal in these difficult credit markets is a testimony to their work ethic and the respect they have among their fellow lenders. We look forward to a long and profitable relationship with all of our financial partners."

Alcon will continue to develop, fully finance, produce, and bear ultimate responsibility for all prints and advertising (P&A) and marketing of its motion pictures. Alcon will continue to work closely with Warner Bros.' marketing and distribution teams on each film. The new deal calls for Warner Bros. to grant 15 additional release "slots" over five years to Alcon's fully financed productions, of which Alcon maintains full greenlight approval.

The first three films in the new arrangement include the recent romantic comedy hit, "P.S. I Love You," which grossed more than $140 million worldwide. It stars two-time Oscar-winner Hilary Swank, who also appeared in three Alcon features including the hit film "Insomnia" with Al Pacino and Robin Williams. Also included are "One Missed Call," a profitable horror thriller starring Shannyn Sossamon and Edward Burns, and the upcoming summer 2008 release "The Sisterhood of the Traveling Pants 2," a sequel to the 2005 romantic comedy hit starring Amber Tamblyn, America Ferrera, Blake Lively and Alexis Bledel.

Kevin Khanna, Senior Vice President, and Sherrese Clarke, Vice President, of CIT Communications, Media & Entertainment led the structuring, syndication and closing of the transaction.

Individuals interested in receiving future updates on CIT via e-mail can register at http://newsalerts.cit.com.

About Alcon Entertainment

Andrew Kosove and Broderick Johnson founded Alcon Entertainment in 1997 with financial backing from Frederick W. Smith, the Founder, Chairman and Chief Executive Officer of FedEx. Alcon, which is named after a mythological archer and ally of Hercules, has financed, and/or co-financed/ produced 14 films including "My Dog Skip," "Dude, Where's My Car?", "Insomnia," "Racing Stripes," "The Wicker Man," "The Sisterhood of the Traveling Pants," "16 Blocks," "One Missed Call," "P.S. I Love You," and "The Sisterhood of the Traveling Pants 2," which will be released in theaters August 2008. Alcon has enjoyed a long-standing distribution relationship with Warner Bros., which has just been renewed for another five years and 15 films.

About CIT Communications, Media & Entertainment

CIT Communications, Media & Entertainment provides comprehensive financial and advisory solutions to the broadcasting, publishing, information services and technology, sports, and communications industries.

About CIT

CIT (NYSE: CIT) is a global commercial finance company that provides financial products and advisory services to more than one million customers in over 50 countries across 30 industries. A leader in middle market financing, CIT has more than $80 billion in managed assets and provides financial solutions for more than half of the Fortune 1000. A member of the S&P 500 and Fortune 500, it maintains leading positions in asset-based, cash flow and Small Business Administration lending, equipment leasing, vendor financing and factoring. The CIT brand platform, Capital Redefined, articulates its value proposition of providing its customers with the relationship, intellectual and financial capital to yield infinite possibilities. Founded in 1908, CIT is celebrating its Centennial throughout 2008. www.cit.com

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