Paramount Motion Picture Group and Dresdner Kleinwort Create $300 Million Financing Structure

Paramount Motion Picture Group and Dresdner Kleinwort Create $300 Million Financing Structure

Melrose Investors 2 LLC to Fund Films For 2007 Slate

HOLLYWOOD, Calif., and NEW YORK, Oct. 2 /PRNewswire/ -- Paramount Motion Picture Group (PMPG), a unit of Viacom (NYSE:VIA)(NYSE:VIA.B) and Dresdner Kleinwort today announced the creation of a $300 million film financing arrangement. The fund, named Melrose Investors 2 LLC (Melrose 2), will invest in the production of at least 30 films. Films funded through the arrangement include releases from Paramount Pictures, DreamWorks SKG, MTV Films and Nick Movies. Paramount Vantage and Paramount Classics releases are not part of the fund.

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Melrose 2 is the follow-up transaction to the 2004 Melrose Investors LLC fund. Melrose Investors LLC invested $225 million in 25 PMPG releases commencing with "MEAN GIRLS."

"The successful closing of Melrose 2 demonstrates a strong investor appetite for the film sector, as well as Paramount's considerable appeal to the investor community," said Laura Fazio, Managing Director and Head of Media, Global Banking, Dresdner Kleinwort. "Paramount's movie labels reach a diverse set of moviegoers - from kids and teens to adults and families - and we have every confidence in the films being assembled under the leadership of Brad Grey and his team."

Upcoming 2007 releases funded under the deal include: "FREEDOM WRITERS" "NORBIT," "SHOOTER" and "THE SPIDERWICK CHRONICLES." The arrangement has also funded films from the 2006 PMPG slate including "JACKASS: NUMBER TWO," "WORLD TRADE CENTER," and "NACHO LIBRE."

Paramount engaged Dresdner Kleinwort to advise on the development of the co-financing structure and arranged its funding.

About Paramount Pictures Corporation

Paramount Pictures Corporation (PPC), a unit of Viacom (NYSE:VIA)(NYSE:VIA.B), is a global entertainment company that produces and distributes filmed entertainment through the Paramount Motion Picture Group which includes Paramount Pictures, DreamWorks SKG, Paramount Vantage, Paramount Classics, MTV Films and Nick Movies. PPC operations also include Paramount Pictures International, Paramount Home Entertainment, Paramount Digital Entertainment, Paramount Studios and Worldwide Television Distribution.

About Dresdner Kleinwort

Dresdner Kleinwort is the investment bank of Dresdner Bank AG and a member of the Allianz Group. Headquartered in London and Frankfurt, with an international network of offices, Dresdner Kleinwort provides a wide range of investment bank products and services to European and international clients through its Global Banking and Capital Markets business lines.

Contact:
M. Janet Hill
Executive Vice President, Corporate Communications
Paramount Pictures
(323) 956-5011

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19991206/PARLOGO
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PRN Photo Desk, photodesk@prnewswire.com
Source: Paramount Motion Picture Group

CONTACT: M. Janet Hill, Executive Vice President, Corporate
Communications of Paramount Pictures, +1-323-956-5011

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