Carolco Pictures Inc.

Carolco Pictures Inc., is an entertainment company which finances, produces and leases motion pictures for exhibition in the United States and abroad. The company produces, on average, two major event films during the year. These films contain well known creative elements and have a broad-based commercial appeal. Carolco and LIVE Entertainment Inc., a company engaged in the distribution of home videos, agreed to merge the two companies through a tax free exchange of stock. The company is also involved in chapter 11 bankruptcy proceedings and is currently implementing a restructing plan in order to remain as a going concern. LIVE Entertainment Inc. accounted for 53% of 1993 revenues and feature films, 47%.