Getty Images (GYI) 8-K Getty Images Reports Financial Results for the Third Quarter of 2004

Exhibit 99.1

GETTY IMAGES REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2004

Revenue growth continues to accelerate as industry leader reports significant increases in

Operating Margin and Earnings per Share

SEATTLE, October 20, 2004 – Getty Images, Inc. (NYSE:GYI), the world’s leading imagery company, today reported results for the third quarter ended September 30, 2004.

• Revenue grew 17.4 percent over the third quarter of 2003

• Operating income grew 53.6 percent over the prior year to $41.7 million, or a margin of 27.2 percent of revenue

• Reported earnings per diluted share increased to $0.44 from $0.16

• Earnings per diluted share increased 57 percent to $0.44 compared to $0.28, exclusive of debt extinguishment costs of $0.12 after tax in the third quarter of 2003

“We achieved very strong results in the third quarter, with significant year-over-year growth in revenue, operating income and earnings,” said Jonathan Klein, Getty Images’ co-founder and CEO. “We have made excellent progress on all of our 2004 initiatives, and we have continued to see an acceleration in revenue growth while exceeding our operating margin goals for every quarter this year. The platform continues to gain traction as we broaden and deepen our content offerings on gettyimages.com, the de facto home page for the creative and publishing professional.”

Revenue grew 17.4 percent to $153.5 million compared to $130.8 million in the third quarter of 2003. Excluding the effects of changes in currency exchange rates, revenue grew 12.4 percent. Operating income for the third quarter of 2004 grew 53.6 percent to $41.7 million, or 27.2 percent of revenue, compared to $27.2 million, or 20.8 percent of revenue, in the same quarter last year.

Net income for the third quarter was $26.7 million, or $0.44 per diluted share, compared to $9.4 million, or $0.16 per diluted share, for the same quarter in 2003. Results for the third quarter of 2003 included pretax debt extinguishment costs of $11.8 million, or $0.12 per diluted share on an after-tax basis, related to the redemption of $250 million of 5 percent convertible notes. Excluding the debt extinguishment costs, net income for the third quarter of 2003 was $16.7 million, or $0.28 per diluted share.

Gross margin for the quarter was 72.4 percent compared to 71.7 percent in the third quarter of 2003. Selling, general and administrative expenses (SG&A) totaled $54.7 million, an increase of $3.1 million over the third quarter last year. On a currency-neutral basis, SG&A increased by less than $1 million, or 1.8 percent year-over-year. As a percentage of revenue, SG&A declined to 35.6 percent from 39.4 percent in the third quarter of 2003.

Cash and short-term investment balances were $446.7 million at September 30, 2004, up from $422.1 million at June 30, 2004. Growth in the cash balance was partially offset by $22 million of cash used for business acquisitions during the third quarter.

For the first nine months of 2004, net cash provided by operating activities was $138.8 million, compared to $103.2 million in the first nine months of 2003. The acquisition of property and equipment was $25.7 million for the first nine months of 2004, compared to $22.5 million for the same period of 2003.

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Third Quarter 2004 Financial Results

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Business Outlook

The following forward-looking statements reflect Getty Images’ expectations as of October 20, 2004. For the year 2004, the company expects to report results at the upper end of previous guidance, with revenue of approximately $615 million and earnings per diluted share of approximately $1.70. This guidance does not include the impact of EITF 04-8, the recently approved accounting pronouncement related to contingent convertible debt. The company is currently exploring its options in light of this new pronouncement. Pursuant to EITF 04-8, the calculation of diluted earnings per share under the if-converted method and based on the current terms of the contingently convertible debt will require inclusion of approximately 4.3 million additional shares, assuming a share price below the conversion price of $61.08, and the add-back to annual net income of approximately $819,000 in after-tax interest expense.

Web cast information

The company will host a conference call today at 2:00 pm PT. The dial-in number is 800.289.0496 (North America) or 913.981.5519 (international), confirmation number 859424. There will be a live web cast of the conference call, which can be accessed onwww.gettyimages.com by clicking “About Us” and then the “Investors” link. The company will also provide a replay of the conference call at 888.203.1112 (North America) or 719.457.0820 (international), confirmation number 859424, until Friday, October 22 at 9:00 pm PT. The web cast will be archived on the Getty Images Web site and will be available until October 20, 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 currency fluctuations, changes in the economic, political, competitive and technological environments, and the risks associated with system security, upgrades, updates 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 June 30, 2004 and Annual Report on Form 10-K for the year ended December 31, 2003. 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 news and sports photography to contemporary and archival imagery, Getty Images’ products are found each day in newspapers, magazines, advertising, films, television, books and Web sites. Gettyimages.com, is the first place customers turn to search, purchase and download powerful imagery. Seattle-headquartered Getty Images is a global company with customers in more than 100 countries.

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Third Quarter 2004 Financial Results

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Contacts:
	Investors:	Media:
	Jim Epes	Deb Trevino
	Vice President, Investor Relations	Senior Vice President, Communications
	206.925.6930	206.925.6474
	jim.epes@gettyimages.com	deb.trevino@gettyimages.com

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Third Quarter 2004 Financial Results

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

	THREE MONTHS ENDED SEPTEMBER 30,						NINE MONTHS ENDED SEPTEMBER 30,
	2004			2003			2004			2003
(In thousands, except per share amounts)
Revenue	$	153,488		$	130,775		$	460,327		$	388,814
Cost of sales		42,344			37,062			127,939			110,700
Gross profit		111,144			93,713			332,388			278,114
Selling, general and administrative expenses		54,661			51,547			163,790			156,703
Depreciation		13,587			13,826			40,731			43,563
Amortization		1,175			1,123			3,360			2,998
Other operating expenses (income)		8			59			9			(16	)
Operating expenses		69,431			66,555			207,890			203,248
Income from operations		41,713			27,158			124,498			74,866
Interest expense		(907	)		(1,204	)		(2,887	)		(8,856	)
Interest income		2,671			1,501			6,465			2,922
Exchange gains (losses), net		137			(56	)		(615	)		1,668
Debt extinguishment costs		—			(11,777	)		—			(11,777	)
Other income (expenses), net		10			(42	)		—			(40	)
Income before income taxes		43,624			15,580			127,461			58,783
Income tax expense		(16,892	)		(6,138	)		(49,491	)		(22,945	)
Net income	$	26,732		$	9,442		$	77,970		$	35,838
Earnings per share
Basic	$	0.45		$	0.17		$	1.33		$	0.65
Diluted		0.44			0.16			1.28			0.62
Shares used in computing earnings per share
Basic		59,406			56,037			58,557			54,974
Diluted		61,224			59,456			60,681			58,259

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Third Quarter 2004 Financial Results

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CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	SEPTEMBER 30, 2004			DECEMBER 31, 2003
(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	145,879		$	140,058
Short-term investments		300,861			167,525
Accounts receivable, net		90,280			75,781
Prepaid expenses		9,650			9,693
Deferred income taxes, net		13,206			13,206
Other current assets		3,463			1,246
Total current assets		563,339			407,509
Property and equipment, net		111,331			123,268
Goodwill		622,377			603,024
Identifiable intangible assets, net		14,512			16,615
Deferred income taxes, net		41,849			62,567
Other long-term assets		10,308			11,101
Total assets	$	1,363,716		$	1,224,084
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	63,414		$	64,454
Accrued expenses		40,134			42,459
Income taxes payable		2,960			8,170
Total current liabilities		106,508			115,083
Long-term debt		265,000			265,011
Other long-term liabilities		9,959			8,184
Total liabilities		381,467			388,278
Stockholders’ equity
Common stock		598			573
Additional paid-in capital		1,167,527			1,098,249
Unearned compensation		(84	)		(448	)
Accumulated deficit		(197,283	)		(275,253	)
Accumulated other comprehensive income		11,491			12,685
Total stockholders’ equity		982,249			835,806
Total liabilities and stockholders’ equity	$	1,363,716		$	1,224,084

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Third Quarter 2004 Financial Results

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

NINE MONTHS ENDED SEPTEMBER 30,	2004			2003
(In thousands)
Cash flows from operating activities
Net income	$	77,970		$	35,838
Adjustments to reconcile net income to net cash provided by operating activities
Deferred income taxes		40,806			17,739
Depreciation		40,731			43,563
Amortization of identifiable intangible assets		3,360			2,998
Bad debt expense		2,721			3,120
Amortization of debt issuance costs		1,431			1,163
Debt extinguishment costs		—			11,777
Other changes in long-term assets and liabilities		2,477			671
Changes in current assets and liabilities, net of effects of business acquisitions
Accounts receivable		(9,009	)		(2,672	)
Accounts payable		(6,015	)		(2,100	)
Accrued expenses		(10,816	)		(9,073	)
Income taxes payable		(3,931	)		(2,948	)
Changes in other current assets and liabilities		(927	)		3,101
Net cash provided by operating activities		138,798			103,177
Cash flows from investing activities
Acquisition of available-for-sale investments		(225,579	)		(62,543	)
Proceeds from sale of available-for-sale investments		90,535			—
Acquisition of property and equipment		(25,693	)		(22,503	)
Acquisition of businesses, net of cash acquired		(22,952	)		(3,486	)
Proceeds from the maturity of held-to-maturity investments		—			14,238
Other investing activities		—			258
Net cash used in investing activities		(183,689	)		(74,036	)
Cash flows from financing activities
Proceeds from the issuance of common stock		50,967			48,067
Debt issuance costs paid		(191	)		(7,288	)
Proceeds from the issuance of long-term debt		—			265,000
Repayment of debt		—			(250,000	)
Payment of debt premium		—			(7,142	)
Net cash provided by financing activities		50,776			48,637
Effects of exchange rate differences		(64	)		2,305
Net increase in cash and cash equivalents		5,821			80,083
Cash and cash equivalents, beginning of period		140,058			76,105
Cash and cash equivalents, end of period	$	145,879		$	156,188