LOS ANGELES, December 10, 2001 — C-2 Pictures and Intermedia continue to fast track the long-awaited sequel to the previous blockbusters The Terminator and Terminator II: Judgment Day. In a joint statement with the studio, they today announced that the domestic distribution rights to the Arnold Schwarzenegger-starring Terminator 3: The Rise of the Machines have landed at Warner Bros. Pictures.

To be produced by Mario Kassar, Andrew Vajna and Joel Michaels of C-2 Pictures and Hal Lieberman, the mega-blockbuster will re-ignite the international franchise and set the stage for future Terminator sequels. Principal photography for the Jonathan Mostow (U-571, Breakdown) directed film is set for April 2002, with a planned Summer 2003 mega-release.

Terminator 3 is a C-2 Pictures/Intermedia production in association with the Munich-based production entity IMF and Mostow/Lieberman Productions. Intermedia's co-chairmen Moritz Borman, Nigel Sinclair and Guy East will executive produce.

Mario Kassar and Andrew Vajna, co-chairmen of C-2 Pictures, said: "We had a very difficult time making the final decision on the domestic distributor but in the end, Warners pulled out all of the stops and committed the full support and extensive resources we wanted from the entire AOL Time Warner organization." C-2 Picture's finance chief, Sam Falconello, added, "the depth and breath of AOL Time Warner was pivotal to procuring the deal we wanted commensurate with the stature and elements of Terminator 3."

Intermedia's co-chairman Moritz Borman stated, "We are delighted to be working with Alan Horn, Lorenzo di Bonaventura and the Warner Bros. Pictures team that has proven magic with blockbusters."

"The Terminator and Terminator II: Judgment Day were revolutionary motion pictures, both artistically and commercially, and we couldn't be happier to be involved with the highly anticipated third installment of this innovative franchise," said Alan Horn, President and Chief Operating Officer, Warner Bros., and Lorenzo di Bonaventura, President of Worldwide Production, Warner Bros. Pictures. "We look forward to working with Arnold Schwarzenegger and our colleagues at C-2 and Intermedia to bring Terminator 3: Rise of the Machines to fans throughout North America in 2003."

Ken Ziffren and Skip Brittenham of Ziffren, Brittenham, Branca & Fischer represented C-2 Pictures and Intermedia on the deal.

C-2 Pictures and Intermedia expect to close the major international distribution deals for Terminator 3 before the end of the year.

About C-2 Pictures: C-2 Pictures is the Santa Monica-based filmed entertainment company founded and headed by former Carolco Pictures principals Mario Kassar and Andrew Vajna. Their producing credits [which have spanned over two decades and yielded well over a billion dollars in worldwide box office] include the Rambo series, Total Recall, the original Basic Instinct, Terminator 2: Judgment Day, Die Hard With a Vengeance, Cliffhanger, Stargate and Evita [as well as "I Spy" currently in production].

Intermedia is a diversified entertainment investment company with offices in Los Angeles, London and Munich, which develops, finances and distributes motion pictures in collaboration with leading producing partners. Its parent company, IM Internationalmedia AG, is listed on the Frankfurt Neuer Markt stock exchange. Two Intermedia/IMF productions, K-PAX and The Wedding Planner, opened at #1 in the U.S. box office charts this year. Other Intermedia films include Nurse Betty, Sliding Doors, Small Time Crooks, Hilary and Jackie, Playing By Heart, Blow Dry, Sweet and Lowdown, Enigma, Where the Heart Is and Where The Money Is, as well as such forthcoming titles as K-19: The Widowmaker, The Quiet American, Adaptation, Iris, Dark Blue and National Security.