FOUR MEDIA COMPANY
 
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 7, 1997
 
  On February 24, 1997, Four Media Company announced that it entered into an
agreement to acquire the business of Anderson Film Industries Corp.
("Anderson"). Anderson, located in Universal City, CA, provides technical and
creative services to feature film studios and to producers of television
programming. The closing of the transaction is subject to the completion of
definitive documentation. There can be no assurance that the Company will be
successful in consummating the transaction.
 
               The date of this Supplement is February 24, 1997