FOR IMMEDIATE RELEASE               Contact: Mitch Stoller       
                                             Burson-Marsteller
                                             (212) 614-5122


           CAROLCO PICTURES REPORTS BANK LOAN EXTENSION


    LOS ANGELES, October 2, 1995 -- Carolco Pictures Inc. announced today that
Credit, Lyonnais Bank Nederland N.V. ("CLBN") has agreed to extend the maturity 
date of its credit facility with Carolco to November 10, 1995.  The CLBN credit
facility was scheduled to mature September 29.  In conjunction with such 
extension, Carolco made a partial payment of the amount outstanding under the 
CLBN credit facility.

    As previously announced, Carolco is currently considering a plan to sell 
certain assets; identify and secure new equity investments and/or sources of
financing; negotiate more advantageous distribution arrangements; and 
restructure its outstanding obligations either outside or within a Chapter 11 
Bankruptcy.  If Carolco is unable to successfully accomplish one or more of 
these options, or implement similar strategies, it will be unable to continue as
a going concern.

    Carolco is a diversified entertainment company engaged in the financing, 
production and leasing of motion picture properties worldwide.
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