Wild Bunch AG

Board/Management Information • Mar 25, 2002

News Details

Corporate | 25 March 2002 19:45

Senator Entertainment AG english

No objections to Senator’s change of auditors Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Due to the current press reports, Senator sees itself compelled, together with Arthur Andersen, to issue a statement regarding its change of auditor and accusations of pseudo-transactions. In particular, the Prior Börse has reported on alleged pseudo-transactions in connection with the TV deal in 2000. The financial statements for 2000 were audited by Arthur Andersen which rendered its unqualified opinion. As Senator has repeatedly stated, the last installment of the TV deal was received in the 3d quarter of 2001. That means that the transactions Prior calls into question were realised and concluded in fact. Senator states categorically that the accusation of alleged pseudo-transactions is unfounded and obviously not the reason for changing auditors. Moreover Arthur Andersen was elected Senator’s auditor by the Annual General Meeting in June 2001. Whereby the actual appointment had been delayed by Senator. In November 2001, in agreement with Senator, Arthur Andersen declined the audit engagement for planning reasons. This led to the appointment of another auditor. Contrary to press reports, no serious reason was required for declining the engagement since no contract had been made with Arthur Andersen to perform the audit. The provisions of § 318 para. 6 of the German Commercial Code require a serious reason for cancellation only when an audit engagement has already been accepted and a contract thereby concluded. A new auditor was appointed by the competent court, in accordance with the law, since it would have been impossible for formal reasons to summon a General Meeting and this would also have entailed substantial expense. The new auditors have found no reasons in their current audit for any qualification of their opinion. Karl W. Homburg Head of IR/Corporate Communications phone: +49 30 88091-612 mailto: investor@senator.de end of message, (c)DGAP 25.03.2002