Getty Images (GYI) 8-K Getty Images Reports Financial Results for the Second Quarter of 2003

Exhibit 99.1

GETTY IMAGES REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2003

• Revenue increased 13 percent

• Operating income grew 120 percent to $23.8 million

• Operating margin increased to 18.6 percent from 9.5 percent

• Earnings per share rose 187 percent to $0.23 from $0.08

SEATTLE, July 23, 2003 – Getty Images, Inc. (NYSE:GYI), the world’s leading imagery company, today reported results for the second quarter ended June 30, 2003. Revenue grew to $127.7 million, a 12.7 percent increase over revenue of $113.3 million in the second quarter of 2002, and included a 6.9 percent benefit from foreign currency translation. Operating income for the second quarter of 2003 grew 120 percent to $23.8 million, or 18.6 percent of revenue, compared to $10.8 million, or 9.5 percent of revenue, in the same quarter last year. Net income for the second quarter was up 194 percent to $13.2 million, or $0.23 per diluted share, compared to $4.5 million, or $0.08 per diluted share, for the same quarter in 2002.

“Once again, we are pleased to report significant growth in sales, operating margin, free cash flow and earnings, notwithstanding a market environment that continues to be challenging,” said Jonathan Klein, Getty Images’ co-founder and CEO. “We have made substantial progress in expanding our products and enhancing the customer experience in many key areas, including royalty-free stock photography, film and editorial imagery. We are having an excellent year and remain very confident that the strength of our business model, the power of our platform and our industry leadership put us in a wonderful position to build on the solid progress we have made in recent quarters.”

Revenue for the six months ended June 30, 2003, was $258.0 million, a 13.6 percent increase over the $227.2 million reported for the same period in 2002, and included a 6.7 percent benefit from foreign currency translation. Operating income for the first half of 2003 was up 148 percent to $47.7 million, compared to $19.2 million for the first half of 2002. For the six months ended June 30, 2002, net income grew by 269 percent to $26.4 million, or $0.46 per diluted share, from $7.2 million, or $0.13 per diluted share.

Cash and short-term investment balances increased to $454.7 million at June 30, 2003, up from $133.6 million at the end of the first quarter, including net proceeds of $257.7 million from the issuance of $265 million of 0.5 percent convertible subordinated debentures on June 9, 2003. The proceeds of the new debentures were used to redeem the company’s $250 million of 5 percent convertible notes, which were redeemed on July 10, 2003. Therefore, starting in the third quarter of 2003, interest expense on convertible debt will decrease from approximately $3.1 million per quarter to approximately $330,000 per quarter.

For the first six months of 2003, net cash provided by operating activities was $61.2 million, compared to $40.2 million in the first half of 2002. The acquisition of property and equipment was $15.0 million in the first half of 2003, compared to $19.1 million in the same period of 2002.

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Second Quarter 2003 Financial Results

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Business Outlook

The following forward-looking statements reflect Getty Images’ expectations as of July 23, 2003. The company intends to continue its practice of not updating forward-looking statements until the next quarterly results announcement, other than in publicly available statements.

For the third quarter of 2003, the company expects to report revenue in the range of $127 million to $131 million. Results for the third quarter will include a debt extinguishment charge of approximately $11.8 million related to the $250 million of 5 percent convertible notes redeemed at par plus a premium of 2.9 percent, as well as the unamortized debt issuance costs on these notes. The company expects to report third quarter diluted earnings per share of $0.12 to $0.14, including $0.12 per share of debt extinguishment costs. For the third quarter of 2003, excluding the debt extinguishment costs of $0.12, the company expects to report third quarter diluted earnings per share of $0.24 to $0.26.

For 2003, the company expects revenue in the range of $505 million to $515 million and earnings per share, including debt extinguishment costs of $0.12, of $0.78 to $0.85. Excluding debt extinguishment costs of $0.12, the company expects earnings per share of $0.90 to $0.97 for 2003.

Webcast information

The company will host a conference call today at 2:00 pm PT. The dial-in number is 800.361.0912 (North America) or 913.981.5559 (international), confirmation number 762647. There will be a live webcast of the conference call, which can be accessed from the Investors section of the Getty Images Web site at www.gettyimages.com. The company will also provide a replay of the conference call at 888.203.1112 (North America) or 719.457.0820 (international), confirmation number 762647, until Friday, July 25 at 9:00 pm PT. The webcast will be archived on the Getty Images Web site and will be available until July 23, 2004.

Some of the statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, assumptions and projections about Getty Images and its industry as of the time the statements are made. These forward-looking statements are not guarantees of future performance and are subject to certain risks and uncertainties that could cause our actual results to differ materially from our past performance and our current expectations, assumptions and projections. Differences may result from actions taken by the company as well as from risks and uncertainties beyond the company’s control. These risks and uncertainties include, among others, the risks associated with changes in the economic, political, competitive and technological environments, and the risks associated with system security and service interruptions. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance, please review the reports filed by Getty Images with the Securities and Exchange Commission, in particular our Form 10-Q for the quarter ended March 31, 2003 and Annual Report on Form 10-K for the year ended December 31, 2002. Except as required by law, Getty Images undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or other events.

About Getty Images

Getty Images is the world’s leading imagery company, creating and providing the largest and most relevant collection of still and moving images to communication professionals around the globe. From sports and news photography to archival and contemporary imagery, Getty Images’ products are found each day in newspapers, magazines, advertising, films, television, books and Web sites. Getty Images’ Web site,

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Second Quarter 2003 Financial Results

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www.gettyimages.com, is the first place customers turn to search, purchase and download powerful imagery. Seattle-headquartered Getty Images is a global company, and has customers in more than 50 countries.

Contacts:

Investors:	Media:
Kira Bacon	Deb Trevino
Vice President of Investor Relations	Vice President of Corporate Communications
206.925.6448	206.925.6474
kira.bacon@gettyimages.com	deb.trevino@gettyimages.com

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Second Quarter 2003 Financial Results

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GETTY IMAGES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Three Months Ended June 30,
	2003			2002
	(In thousands, except per share data)
Sales	$	127,722		$	113,298
Cost of sales		36,323			29,992
Gross profit		91,399			83,306
Selling, general and administrative expenses		51,792			52,181
Depreciation		14,803			15,720
Amortization, including catalogs of $3.3 million in 2002		940			4,625
Other operating expenses		85			—
Operating expenses		67,620			72,526
Income from operations		23,779			10,780
Interest expense		(3,894	)		(4,112	)
Interest income		819			320
Exchange gains, net		809			434
Other (expense) income, net		(3	)		13
Income before income taxes		21,510			7,435
Income tax expense		(8,344	)		(2,962	)
Net income	$	13,166		$	4,473
Earnings per share:
Basic	$	0.24		$	0.08
Diluted		0.23			0.08
Shares used in computing earnings per share:
Basic		54,854			52,969
Diluted		58,198			56,932

Getty Images, Inc.

Second Quarter 2003 Financial Results

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GETTY IMAGES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	Six Months Ended June 30,
	2003			2002
	(In thousands, except per share data)
Sales	$	258,038		$	227,150
Cost of sales		73,638			60,085
Gross profit		184,400			167,065
Selling, general and administrative expenses		105,156			105,353
Depreciation		29,736			31,064
Amortization, including catalogs of $7.9 million in 2002		1,875			10,619
Other operating (income) expenses		(75	)		812
Operating expenses		136,692			147,848
Income from operations		47,708			19,217
Interest expense		(7,652	)		(8,155	)
Interest income		1,421			563
Exchange gains, net		1,724			266
Other income (expense), net		2			(5	)
Income before income taxes		43,203			11,886
Income tax expense		(16,807	)		(4,733	)
Net income	$	26,396		$	7,153
Earnings per share:
Basic	$	0.49		$	0.14
Diluted		0.46			0.13
Shares used in computing earnings per share:
Basic		54,424			52,538
Diluted		57,542			55,787

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Second Quarter 2003 Financial Results

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GETTY IMAGES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	June 30, 2003			December 31, 2002
	(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	372,035		$	76,105
Short-term investments		82,649			40,698
Accounts receivable, net		74,476			73,006
Inventories		1,076			1,615
Prepaid expenses		9,927			6,925
Deferred income taxes, net		11,150			11,147
Other current assets		3,843			3,493
Total current assets		555,156			212,989
Property and equipment, net		127,781			140,666
Goodwill		608,228			603,011
Identifiable intangible assets, net		16,850			18,606
Deferred income taxes, net		32,962			44,911
Other long-term assets		12,161			4,872
Total assets	$	1,353,138		$	1,025,055
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	58,687		$	56,207
Accrued expenses		40,319			46,770
Income taxes payable		5,307			8,101
Current portion of long-term debt		245,367			—
Total current liabilities		349,680			111,078
Long-term debt		265,000			244,739
Other long-term liabilities		2,678			1,285
Total liabilities		617,358			357,102
Stockholders’ equity
Common stock		556			539
Additional paid-in capital		1,042,287			1,007,015
Deferred compensation		(693	)		(906	)
Accumulated deficit		(312,874	)		(339,270	)
Accumulated other comprehensive income		6,504			575
Total stockholders’ equity		735,780			667,953
Total liabilities and stockholders’ equity	$	1,353,138		$	1,025,055

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Second Quarter 2003 Financial Results

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GETTY IMAGES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Six Months Ended June 30,
	2003			2002
	(In thousands)
Cash flows from operating activities
Net income	$	26,396		$	7,153
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		29,736			31,064
Amortization		1,875			10,619
Deferred income taxes		12,297			2,240
Bad debt expense		2,194			4,384
Amortization of debt issuance costs		760			986
Other items		252			(201	)
Change in assets and liabilities, net of effects of business acquisitions:
Accounts receivable		(1,021	)		(6,900	)
Accounts payable		(269	)		(1,769	)
Accrued expenses		(7,854	)		(5,106	)
Income taxes		(2,526	)		(2,728	)
Other		(601	)		456
Net cash provided by operating activities		61,239			40,198
Cash flows from investing activities
Acquisition of available-for-sale investments		(62,188	)		—
Proceeds from the maturity of held-to-maturity investments		19,985			445
Acquisition of property and equipment		(14,986	)		(19,136	)
Acquisition of businesses, net of cash acquired		(3,565	)		—
Proceeds from disposition of assets		300			—
Acquisition of identifiable intangible assets		(44	)		—
Acquisition of held-to-maturity investments		—			(7,638	)
Net cash used in investing activities		(60,498	)		(26,329	)
Cash flows from financing activities
Proceeds from the issuance of long-term debt		265,000			—
Proceeds from the issuance of common stock		35,289			18,123
Debt issuance costs		(7,287	)		(138	)
Repayment of debt		—			(4	)
Net cash provided by financing activities		293,002			17,981
Effects of exchange rate differences		2,187			1,699
Net increase in cash and cash equivalents		295,930			33,549
Cash and cash equivalents, beginning of period		76,105			46,173
Cash and cash equivalents, end of period	$	372,035		$	79,722