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TWST: Can we start with an update on how Highlight Communications (DE:920305) has moved forward since we spoke back in 2000?

Mr. Syfrig: In 2000 we had three parts, one of which was a new business. However, given the circumstances, we have stopped all new business activities and we therefore went back to the two business, film and sports marketing. In the film business, we are concentrated in film license trading, the wholesale of video DVD, and the retail of video. We are also in production through a 25 percent stock in Constantin Film, which is the leading German film producer. We also work very close together in the cinema video business. We have a strong basis in the home entertainment business and they have really good in the cinema business. That’s all concentrated on the German speaking area. The second part of the business is sports marketing where we hold an 80 percent stock in TEAM Holding which is the agent for UEFA worldwide activities for The Champion’s League Football. We are also searching for new business in sports marketing. In 2002, I expect that about 55 percent of the turnover will be in film and the rest in sport. Sport marketing, however, will be much better on the bottom line than film for 2002, but under the market circumstances, we do also expect a very good year in 2003 for film.

TWST: Are those percentages fairly stable year-after-year or is one business growing at a faster rate?

Mr. Syfrig: I think the film business will grow with bigger steps than the sport business. The sport business is very hard to grow because it’s very good at marketing the Champion’s League, but I don’t expect that we will grow there. It may be that we can develop new business areas in sport marketing and if that happens then we could see more growth than film, but currently I see the film business growing slowly and competitively.

TWST: Can you comment more on the Constantin partnership and the strategy that you are pursuing there?

Mr. Syfrig: We plan to be the number one in the independent film business in the German speaking area, which is 90 percent Germany itself and then five percent a piece in Switzerland and Austria. To become number one, it is only possible if you are number one in the production German films. Bernd Eichinger is really the number one in that area. In fact, 50 percent of all tickets sold in the last 20 years were sold by Constantin Films for German films. So if you want to get into that market, then you should go together with Constantin.

TWST: More broadly speaking, can you comment on the dynamics within the German market and why this is a good market for you to be in, in terms of growth opportunities?

Mr. Syfrig: In the last two years there were a lot players in the market who threw their money in the market without any sense and it was very hard to get films at the right prices. Because of that, we reduced the acquiring films from end of 2000 to nearly zero because it was not possible to get films at prices which you could get back from the market. Now, I don’t have to tell you the names, but a lot of these players are no longer in the market and that means that in the next one or two years there will be a lot of opportunities to get to number one in the independent market. If we get there, I think the future will be good.

TWST: What do you see as the strengths that have enabled you to stay around?

Mr. Syfrig: Highlight was founded in 1983, which is really at the beginning of the business. From 1997 up until 2001, which was the Neuer Markt time, there was a lot of money in the market but nothing behind it. At the moment I think there only exists one or two firms, Constantin, Highlight, perhaps one or two others, who are in the market involved. DMG Group is there, but they are not on the stock market, TNG Group are very, very strong. I think the competition is buying films at the right prices, but within the stock market I don’t see any competitors at the moment.