RHI Announces Q3 Results

NEW YORK, November 7:
Announcing its third-quarter results, which showed an 86-percent revenue hike
to $53.5 million, RHI Entertainment said it would be lowering the number of
productions it delivers this year to between 30 and 35, as a result of current
market conditions.

Robert Halmi, Jr., the company's president, CEO and chairman of the
board, noted: "Current economic conditions have presented challenges for all
companies, RHI included. As a result, the number of productions we will deliver
in 2008 will be reduced to between 30 and 35 films. We are closely monitoring
factors such as reduced television advertising spending in the fourth quarter
of 2008 and the first half of 2009 and the potential impact that this could
have on the demand for, and pricing of, our film content and the distribution
of our programming. At the same time, we are closely managing our operations
and carefully reviewing costs to ensure we have the appropriate resources and
sufficient liquidity to bring about long-term growth."

Of the quarter's $53.5
million in revenues, $21.8 million came from production, reflecting a
52-percent increase, and $31.7 million were derived from library sales, a
121-percent increase. For the period, RHI posted a net loss of $3.5 million, as
compared with the $12.4 million loss from a year ago.

"Our
film library and unique production model positioned us well for another quarter
of solid revenue growth," said Halmi. "We continued to see demand for
both our library and original film product. This speaks to our production
model, which is built to deliver quality content at attractive prices."

—By Mansha Daswani