EXHIBIT 99.1

	Office of the United States Trustee
In re:      The Kushner-Locke Company		DEBTOR IN POSSESSION OPERATING REPORT
Chapter 11 Case No. LA 01-44828-SB (Administratively Consolidated with Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01- 44833-SB through LA 01-44836-SB; and LA 01-44841-SB)		Report Number: For the Period FROM: TO:	17 3/1/2003 3/31/2003	Page 1 of 2

1  Profit and Loss Statement (Accrual Basis Only)
	A. Related to Business Operations
	Gross Sales					$	—
		Costs Related to Revenues (Film Cost Amortization)
			Gross Profit						—
		Less: Operating Expenses
		Officer Compensation			23,175
		Salaries and Wages - Other Employees			23,728
			Total Salaries and Wages				46,903
			Employee Benefits and Pensions				2,529
		Employer Payroll Taxes/Fees			3,151
		Other Taxes			10
			Total Taxes				3,161
		Rent and Lease Expense (including parking)			2,360
		Distribution/Delivery Expenses			51
		Interest Expense
		Insurance			—
		Automobile Expense/Mileage
		Utilities (incl. Phone, phone equipment, internet)			471
		Depreciation and Amortization
		Business Equipment Leases			260
		Business Expense reimbursement			331
		Storage Expense			7,000
		Supplies, Office Expenses, Photocopies, etc.
		Bad Debts
		Miscellaneous Operating Expenses			513
			Total Operating Expenses				63,579
				Net Gain/Loss from Business Operations					(63,579	)
	B. Not related to Business Operations
		Income
			Interest Income
			Other Non-Operating Revenues				—
			Gross Proceeds on Sale of Assets		—
			Less: Original Cost of Assets plus expenses of sale		—
				Net Gain/Loss on Sale of Assets			—
			Total Non-Operating Income						—
		Expenses Not Related to Business Operations
			Legal and Professional Service Fees				2,250
			Other Non-Operating Expenses (Board/Trustee fees)
			Total Non-Operating Expenses						2,250
	NET INCOME/(LOSS) FOR PERIOD							$	(65,829	)

DEBTOR IN POSSESSION OPERATING REPORT NO: 17 Page 2 of 2

  2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

					Accounts		Accounts
					Payable		Receivable
Current Under 30 days						35,870		—
		Overdue 31-60 days				—		—
		Overdue 61-90 days				—
	Overdue 91-120 days					—
Overdue Over 121 days						—
			Due in the Future			—		1,241,500
				TOTAL		35,870		1,241,500

3	Statement of Status of Payments to Secured Creditors and Lessors:
	No payments to Secured Creditors or Lessors were paid or payable during the reporting period.
4	Tax Liability
	No tax payments were paid or payable during the reporting period other than payroll taxes shown above.
5	Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED)	St. Paul		1,000,000		1/14/2004		1/14/2004
Commercial Property (RENEWED)	St. Paul		2,000,000		2/14/2004		2/14/2004
Errors & Omissions - Library (RENEWED)	St. Paul		3,000,000		3/3/2004		3/3/2004
Employment Practices Liability (RENEWED-run off)	Nat’l Union		5,000,000		10/30/2003		10/30/2003

  6 Questions:

  A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?

	o Yes                      Explain:
	x No
B.	Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?
	o Yes                      Explain:
	x No

7	Statement on Unpaid Professional Fees (Postpetition Amounts Only)
	Total unpaid post-petition Professional Fees during the reporting period:    $ 855,014.66
8	Narrative Report of Significant Events and Events out of the Ordinary Course of Business:
	None.
9	Quarterly Fees:
	Paid

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

/s/ Alice P. Neuhauser

Debtor in Possession