Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 124

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          released in the international market.149  Mr. Wagner did not                
          incorporate this data into his valuation analysis; however, he              
          posits that these theatrical releases would enhance his valuation           
          of the EBD film titles because of increased consumer awareness.             
          After examining the additional data that Mr. Wagner presented, we           
          cannot agree.                                                               
               Mr. Wagner’s data indicates that all but one of the domestic           
          theatrical releases occurred between 1951 and 1980.  The only               
          exception is “Summer Camp Nightmare,” which had an April 1987               
          release date.  Likewise, most of the international theatrical               
          releases occurred between 1960 and 1979.  Two films were released           
          in 1983, two in 1985, and one (“Nasty Hero,” which has no                   
          confirmed physical materials) in 1992 .  Given the significant              
          time period between these supposed theatrical releases and 1996,            
          we are not convinced that the film titles would have benefited              
          from a theatrical release.  Moreover, we are not convinced that             
          the international theatrical release of admittedly “B” film                 
          titles would translate into increased consumer demand in the U.S.           
          domestic market.                                                            
               iv.  Conclusion                                                        
               In general, we found both expert opinions unsatisfactory.              
          On the one hand, Mr. Medress’ methodology contains considerable             

               149 Mr. Wagner found data for two other theatrical releases            
          but could not determine whether those film titles were released             
          to the domestic or international market.                                    





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