Iwerks reports third quarter results

Iwerks Entertainment Inc. continued its improved operating performance in
fiscal 1999 by reporting revenues of $10,423,000 for the third quarter
ended March 31, 1999, representing a 133 percent improvement over the same
period last year when it reported revenues of $4,483,000. The third-quarter
net loss of $389,000, or 3 cents per share, compared favorably with the
prior year's net loss of $5,077,000, or 42 cents per share. EBITDA
[earnings before interest, taxes, depreciation, depletion, amortization and
items classified as other expense, net] (a) for the quarter was $1,234,000,
compared with a loss of $3,938,000 for the same period last year. For the
nine months ended March 31, 1999, the company had revenues of $26,445,000
vs. $18,524,000 for the same period the prior year, a 43 percent increase.
EBITDA for the nine months ending March 31, 1999, was also positive,
totaling $1,431,000, compared to a loss of $6,042,000 for the same period
last year. "This was our fourth consecutive quarter of improved earnings
over the prior quarter, which validates the key objectives of our strategic
plan for returning the company to profitability," said Charles Goldwater,
president and CEO.


The quarter was highlighted by the company's recent announcements of
several new domestic and international Large Format theater projects,
including a Giant Screen theater project in the United Kingdom with Warner
Village Cinemas; a new ride-simulator project in Okinawa, Japan; and 3D
upgrades to existing Iwerks attractions at a number of Six Flags and
Paramount Parks venues. Iwerks Entertainment, founded in 1986, is one of
the world's
leading full-service providers of high-tech entertainment systems,
support services and film-based software in Large Format,
ride-simulation and specialty-venue attractions.