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Getty Images To Report Lower Q2 Results, To Cut 300 Positions

Press release from the issuing company

SEATTLE, July 10, 2001 – Getty Images, Inc. the leading provider of imagery and related products and services, today announced that, based on preliminary estimates, the company expects revenue for the second quarter ended June 30, 2001, to be approximately $115 million, which is about four percent below the low end of previous revenue guidance provided by the company. The EBITDA margin is projected to be between 18 and 19 percent, and after-tax cash flow per share is estimated to be between 30 and 32 cents. After solid performance in April and May, the company’s sales in the second half of June were lower than initially expected across all brands and geographic segments, due to a further weakening in the U.S. and global markets served by Getty Images. “The weaker than expected economic environment does not in any way decrease our confidence in the power of our long-term business model,” said Jonathan Klein, co-founder and chief executive officer of Getty Images. “However, we are taking aggressive action to increase efficiencies and are accelerating our efforts to reduce costs throughout our organization.” As part of Getty Images’ plan to decrease operating expenses, during the third quarter, the company will reduce its worldwide employee base to approximately 2,000 from 2,300 at the end of the second quarter. Klein added, “As the leading provider of visual content to communications industries worldwide, we have a substantial market position and significant revenues. Of equal importance, our business continues to generate attractive margins and strong operating cash flow which, combined with our solid cash position, gives us the resources to navigate successfully through these challenging economic times and to expand further our global leadership in the visual content market.” The company will host a conference call today at 8:00 a.m. PDT. The dial-in number for the call is 888-214-7595 (North America) or 415-537-1880 (international). There will also be a live Webcast of the conference call, which can be accessed from the Investors section of the Getty Images Website at www.gettyimages.com. A replay of the conference call can be accessed by calling 800-633-8284 (North America) or 858-812-6440 (international), reservation number 19333574, until Friday, July 13, at 5:00 p.m. PDT. The Webcast will be archived on the Getty Images Website and will be available until July 25, 2001. Getty Images will announce full second quarter financial results on Wednesday, July 25. At that time, the company will provide updated guidance. All prior guidance provided by the company, including guidance incorporated in its April 25, 2001 press release, is no longer in effect. "EBITDA" is defined as earnings before income taxes, depreciation, amortization, interest, exchange gains and losses and, when applicable, loss on impairment, debt conversion expense, integration and restructuring costs, extraordinary items and other income and expenses. EBITDA should not be considered as an alternative to operating income, as defined by generally accepted accounting principles, as an indicator of our operating performance, or to cash flows as a measure of our liquidity.

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