Office of the United States Trustee

DEBTOR IN POSSESSION INTERIM STATEMENT

In re:
The Kushner-Locke Company	Page 1 of 3

	Statement Number:	22
Chapter 11	For the Period FROM:	8/1/2003
Case No. LA 01-44828-SB (Administratively Consolidated with	TO:	8/31/2003
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)

CASH ACTIVITY ANALYSIS (Cash Basis Only)				Collateral		Concentration
				Account		Account
Balance before Statement #1				$	268,333.21		65,956.21
A. Total Receipts per all Prior Interim Statements					4,215,431.08		3,272,466.40
B. Less: Total Disbursements per all Prior Statements					3,284,912.51		3,303,935.60
C. Beginning Balance				$	1,198,851.78		34,487.01
D. Receipts during Current Period
		Description
	8/6/2003		Wire Transfer			$	26,000.00
	8/15/2003		Lion's Gate	$	13,043.08
	8/15/2003		Lion's Gate	$	46,990.24
	8/15/2003		Lion's Gate	$	2.04
	8/18/2003		AB Filmindustri	$	30.95
	8/19/2003		Wire Transfer			$	45,000.00
	8/28/2003		Berkowitz & Black	$	155,000.00
	8/28/2003		Franchise Pictures	$	1,816.00
	8/28/2003		Dalaklis-McKeown Ent	$	750.00
	8/30/2003		interest	$	458.23
		TOTAL RECEIPTS THIS PERIOD			218,090.54		71,000.00		—		—
E. Balance Available (C plus D)				$	1,416,942.32		105,487.01	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 22 Page 2 of 3

F. Less: Disbursements during Current Period:
Date		Check No.		Payee/Purpose
	8/1/2003				ADP Fees			$	239.05
	8/6/2003				ADP Taxes			$	5,633.95
	8/6/2003				Wire Transfer	$	26,000.00
	8/7/2003		8002		Payroll			$	980.58
	8/7/2003		8003		Payroll			$	7,943.86
	8/7/2003		8004		Payroll			$	1,332.85
	8/7/2003		8005		Payroll			$	2,293.03
	8/8/2003		37740		Bonded Services, Inc			$	6,296.05
	8/8/2003		37741		Doniger & Fetter			$	916.29
	8/8/2003		37742		Marathon Services, Inc			$	259.80
	8/8/2003		37743		Personnel Concepts Limited			$	49.69
	8/8/2003		37744		Qwest Communications			$	39.28
	8/8/2003		37745		SBC			$	43.20
	8/8/2003		37746		Zerolag Communications, Inc			$	100.00
	8/8/2003		37747		KEREN AMINIA			$	281.90
	8/15/2003				ADP Fees			$	110.49
	8/19/2003				Wire Transfer	$	45,000.00
	8/20/2003				ADP Taxes			$	5,735.66
	8/21/2003		8006		Payroll			$	980.58
	8/21/2003		8007		Payroll			$	8,070.42
	8/21/2003		8008		Payroll			$	1,332.84
	8/21/2003		8009		Payroll			$	2,293.04
	8/26/2003		37748		Blue Shield of California			$	316.00
	8/26/2003		37749		Bowne of Los Angeles, Inc			$	580.00
	8/26/2003		37750		Clumeck,Stern,Phillips&Schenkelbu			$	8,042.50
	8/26/2003		37751		Health Net			$	2,187.92
	8/26/2003		37752		Hodes Parking			$	360.00
	8/26/2003		37753		Property Management Associates, I			$	2,000.00
	8/26/2003		37754		Recall			$	561.30
	8/26/2003		37755		SBC			$	322.16
	8/27/2003		37756		United States Trustee			$	250.00
	8/27/2003		37757		United States Trustee			$	3,750.00
	8/27/2003		37758		United States Trustee			$	250.00
	8/27/2003		37759		United States Trustee			$	250.00
	8/27/2003		37760		United States Trustee			$	250.00
	8/27/2003		37761		United States Trustee			$	250.00
	8/27/2003		37762		United States Trustee			$	250.00
	8/27/2003		37763		United States Trustee			$	250.00
	8/27/2003		37764		United States Trustee			$	250.00
	8/27/2003		37765		Alice P.Neuhauser			$	64.12
	8/29/2003				ADP Fees			$	107.98
TOTAL DISBURSEMENTS THIS PERIOD:							71,000.00		65,224.54		—		—
G. Ending Balance (E less F)						$	1,345,942.32		40,262.47	$	—	$	—

DEBTOR IN POSSESSION INTERIM STATEMENT NO: 22 Page 3 of 3

H	(1)	Collateral Account:
		a) Depository Name and Location:	Chase Bank 1 Chase Manhattan Plaza, New York, NY 10081
		b) Account Number:	323221556
	(2)	Concentration Account:
		a) Depository Name and Location:	Comerica Bank 10900 Wilshire Blvd, Los Angeles, CA 90024
		b) Account Number:	1891935460

I: Other monies on hand:

The Kushner Locke Company PWI account	1891215236	$	1,000.00
Bank of Scotland — Pinocchio	3506258	$	1,014,490.77	Pound Sterling	Time Deposit
Bank of Scotland — Basil	3506581	$	199,187.59	Pound Sterling	Time Deposit	(KL' s interest is 50%)
Allied Pinocchio	10747301		920.11	Pound Sterling
Freeway\Kushner-Locke	323-509487	$	255.95
Edge Entertainment	1891152710	$	444.92
European Films LTD	1890563818	$	7,051.58

I: Other monies on hand (continued):

Additionally, the Company maintains a minimal amount of Petty Cash (less than $500).

Joint Venture Accounts:
	KL MDP Sensation	60-066-930	$	17,724.61
	KL\7 Venture	1890-69-6360	$	9,337.39
	Denial Venture	1890-69-6501	$	42,197.19
	Cracker LLC	1891-04-1665	$	1,000.00
	Swing	323-518095	$	6,957.50

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