Getty Images (GYI) 8-K Financial statements and exhibits

Exhibit 99.1

GETTY IMAGES REPORTS FINANCIAL RESULTS FOR THE FOURTH QUARTER AND

FULL YEAR OF 2003

Global Market Leader Ends Milestone Year with Great Momentum;

Exceeds Half a Billion Dollars of Annual Revenue and Produces More Than $100 Million of Operating Income

SEATTLE, February 5, 2004– Getty Images, Inc. (NYSE:GYI), the world’s leading imagery company, today reported results for the fourth quarter and year ended December 31, 2003.

Quarterly Highlights

• Revenue grew 14 percent

• Reported earnings per diluted share increased to $0.48 from $0.13

• Exclusive of a credit to income tax expense of $0.18 per diluted share, earnings per diluted share increased to $0.30 from $0.13

For the fourth quarter, revenue grew 14.2 percent to $134.4 million, compared to $117.7 million in the fourth quarter of 2002, and included a 6.7 percent benefit from foreign currency translation. Operating income for the fourth quarter of 2003 grew 86.7 percent to $28.4 million, or 21.1 percent of revenue, compared to $15.2 million, or 12.9 percent of revenue, in the same quarter last year.

Net income was $28.2 million, or $0.48 per diluted share, compared to $7.5 million, or $0.13 per diluted share, for the fourth quarter of 2002. As previously announced, results for the fourth quarter of 2003 included a credit to income tax expense of $10.2 million, or $0.18 per share, to reflect a reduction in the balance of the valuation allowance on deferred tax assets. In the fourth quarter, the company reevaluated its deferred tax assets based on estimates of taxable income for future periods. As a result of this evaluation, the company determined that taxable income for future periods will likely be sufficient to use more of the deferred tax asset than the net balance, and therefore reduced the valuation allowance. Excluding the effect of the reduction in the valuation allowance, fourth quarter net income totaled $17.9 million and diluted EPS was $0.30.

“The record results we achieved in the fourth quarter culminate a year of very strong financial performance for the company,” said Jonathan Klein, Getty Images’ co-founder and CEO. “In 2003, we reached a number of key milestones, including exceeding half a billion dollars in sales, producing $100 million in operating income and achieving an operating margin of 20 percent. In the fourth quarter, we began to see signs of recovery in the market for visual content which, in addition to our planned industry sector and geographical expansion, is expected to drive continued solid revenue and earnings growth in the year ahead.”

Full Year Highlights

• Revenue grew 13 percent

• Reported earnings per diluted share increased to $1.11 from $0.39

• Exclusive of a credit to income tax expense of $0.20 per diluted share and debt extinguishment costs of $0.12 per diluted share, earnings per diluted share increased to $1.04 from $0.39

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Fourth Quarter and Full Year 2003 Financial Results

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For 2003, revenue grew 13.0 percent to $523.2 million compared to $463.0 million in the prior year, and included a 6.4 percent benefit from foreign currency translation. Operating income for the full year of 2003 rose 109 percent to $103.3 million, or 19.7 percent of revenue.

For 2003, net income was $64.0 million, or $1.11 per diluted share, compared to $21.5 million, or $0.39 per diluted share. Results for the year included the $10.2 million credit to income tax expense, equating to $0.20 per diluted share on a full-year basis. In addition, annual results included debt extinguishment costs of $11.8 million, or $0.12 per diluted share, related to the redemption on July 10 of $250 million of 5 percent convertible notes at par plus a premium of 2.9 percent, as well as the unamortized debt issuance costs on these notes. Excluding the effect of the credit to income tax expense and the debt extinguishment costs, for 2003 net income totaled $61.0 million, or $1.04 per share.

Cash and short-term investment balances were $307.6 million at December 31, 2003, up from $116.8 million at December 31, 2002.

For 2003, net cash provided by operating activities was $158.1 million, compared to $105.5 million for 2002. The acquisition of property and equipment was $35.3 million for 2003, compared to $39.5 million for 2002.

Business Outlook

The following forward-looking statements reflect Getty Images’ expectations as of February 5, 2004. 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 first quarter of 2004, the company expects to report revenue in the range of $141 million to $146 million and earnings per diluted share of $0.33 to $0.36.

For 2004, the company expects revenue in the range of $560 million to $580 million and earnings per diluted share of $1.35 to $1.50.

Webcast information

The company will host a conference call today at 2:00 pm PT. The dial-in number is 800.289.0468 (North America) or 913.981.5517 (international), confirmation number 556368. There will be a live webcast of the conference call, which can be accessed from the Investors page in the About Us 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 556368, until February 7, at 9:00 pm PT. The webcast will be archived on the Getty Images Web site and will be available until February 5, 2005.

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

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Fourth Quarter and Full Year 2003 Financial Results

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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 September 30, 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,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, Investor Relations	Senior Vice President, Communications
206.925.6448	206.925.6474
kira.bacon@gettyimages.com	deb.trevino@gettyimages.com

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Getty Images, Inc.

Fourth Quarter and Full Year 2003 Financial Results

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CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	THREE MONTHS ENDED DECEMBER 31,						YEARS ENDED DECEMBER 31,
(In thousands, except per share amounts)	2003			2002			2003			2002
Revenue	$	134,383		$	117,671		$	523,196		$	463,011
Cost of sales		37,643			34,545			148,343			128,080
Gross profit		96,740			83,126			374,853			334,931
Selling, general and administrative expenses		53,308			51,533			210,011			208,450
Depreciation		13,785			14,877			57,348			61,014
Amortization		1,054			1,310			4,052			14,999
Other operating expenses		190			194			173			1,043
Operating expenses		68,337			67,914			271,584			285,506
Income from operations		28,403			15,212			103,269			49,425
Debt extinguishment costs		—			—			(11,777	)		—
Interest expense		(909	)		(3,704	)		(9,765	)		(15,364	)
Interest income		1,180			523			4,102			1,600
Exchange gains, net		474			589			2,142			445
Other expenses, net		(215	)		(28	)		(255	)		(19	)
Income before income taxes		28,933			12,592			87,716			36,087
Income tax expense		(754	)		(5,093	)		(23,699	)		(14,619	)
Net income	$	28,179		$	7,499		$	64,017		$	21,468
Earnings per share
Basic	$	0.50		$	0.14		$	1.16		$	0.40
Diluted	$	0.48		$	0.13		$	1.11		$	0.39
Shares used in computing earnings per share
Basic		56,711			53,716			55,412			53,084
Diluted		58,836			56,162			57,496			55,455

Getty Images, Inc.

Fourth Quarter and Full Year 2003 Financial Results

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CONSOLIDATED BALANCE SHEETS

(unaudited)

DECEMBER 31,	2003			2002
(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	140,058		$	76,105
Short-term investments		167,525			40,698
Accounts receivable, net		75,781			73,006
Inventories		497			1,615
Prepaid expenses		9,693			6,925
Deferred income taxes, net		13,206			11,147
Other current assets		749			3,493
Total current assets		407,509			212,989
Property and equipment, net		123,268			140,666
Goodwill		603,024			603,011
Identifiable intangible assets, net		16,615			18,606
Deferred income taxes, net		62,567			44,911
Other long-term assets		11,101			4,872
Total assets	$	1,224,084		$	1,025,055
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	64,454		$	56,207
Accrued expenses		42,459			46,770
Income taxes payable		8,170			8,101
Total current liabilities		115,083			111,078
Long-term debt		265,011			244,739
Other long-term liabilities		8,184			1,285
Total liabilities		388,278			357,102
Stockholders’ equity
Preferred stock		—			—
Common stock		573			539
Exchangeable preferred stock		—			—
Additional paid-in capital		1,098,371			1,007,015
Unearned compensation		(570	)		(906	)
Accumulated deficit		(275,253	)		(339,270	)
Accumulated other comprehensive income		12,685			575
Total stockholders’ equity		835,806			667,953
Total liabilities and stockholders’ equity	$	1,224,084		$	1,025,055

Getty Images, Inc.

Fourth Quarter and Full Year 2003 Financial Results

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CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

YEARS ENDED DECEMBER 31,	2003			2002
(In thousands)
Cash flows from operating activities
Net income	$	64,017		$	21,468
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation		57,348			61,014
Deferred income taxes, net		20,569			10,611
Debt extinguishment costs		11,777			—
Reversal of deferred tax asset valuation allowance related to net operating losses		(10,249	)		—
Bad debt expense		4,058			6,369
Amortization		4,052			14,999
Amortization of debt issuance costs		1,837			1,927
Other items		1,359			(107	)
Change in assets and liabilities, net of effects of business acquisitions
Accounts receivable		(914	)		(4,892	)
Accounts payable		2,585			3,553
Accrued expenses		(6,979	)		(6,547	)
Income taxes payable, current and long-term		3,314			(5,834	)
Other		5,280			2,937
Net cash provided by operating activities		158,054			105,498
Cash flows from investing activities
Acquisition of available-for-sale investments		(158,636	)		—
Acquisition of property and equipment		(35,347	)		(39,514	)
Proceeds from the maturity of held-to-maturity investments		20,388			7,192
Proceeds from the sale of available-for-sale investments		10,898			—
Acquisition of businesses, net of cash acquired		(5,496	)		—
Proceeds from the disposition of assets		300			1,127
Acquisition of identifiable intangible assets		(56	)		(1,538	)
Acquisition of held-to-maturity investments		—			(47,865	)
Other		65			65
Net cash used in investing activities		(167,884	)		(80,533	)
Cash flows from financing activities
Proceeds from the issuance of long-term debt		265,000			15,000
Repayment of debt		(250,000	)		(35,103	)
Proceeds from the issuance of common stock		70,866			23,914
Debt issuance costs		(7,965	)		(714	)
Payment of debt premium		(7,142	)		—
Net cash provided by financing activities		70,759			3,097
Effects of exchange rate differences		3,024			1,870
Net increase in cash and cash equivalents		63,953			29,932
Cash and cash equivalents
beginning of year		76,105			46,173
end of year	$	140,058		$	76,105