Exhibit 99.1

Office of the United States Trustee

Page 1 of 2

DEBTOR IN POSSESSION OPERATING REPORT

Report Number:	5
For the Period FROM:	03/1/2002
TO:	03/31/2002

In re:

     The Kushner-Locke Company

Chapter 11

Case No. LA 01-44828-SB (Administratively Consolidated with Case Nos. LA 01-44829-SB through LA 01-44831-SB; LA 01- 44833-SB through LA 01-44836-SB; and LA 01-44841-SB)

1 Profit and Loss Statement (Accrual Basis Only)

A. Related to Business Operations
	Gross Sales				$	—
	Costs Related to Revenues (Film Cost Amortization)					—
			Gross Profit					—
	Less: Operating Expenses
	Officer Compensation			—
	Salaries and Wages — Other Employees			5,452
		Total Salaries and Wages				5,452
		Employee Benefits and Pensions				—
	Employer Payroll Taxes/Fees			—
	Other Taxes			—
		Total Taxes				—
	Rent and Lease Expense (including parking)			8,996
	Distribution/Delivery Expenses			90
	Interest Expense			—
	Insurance
	Automobile Expense/Mileage			136
	Utilities (incl. Phone, phone equipment, internet)			7,887
	Depreciation and Amortization			—
	Business Equipment Leases
	Business Expense reimbursement			132
	Storage Expense			6,212
	Supplies, Office Expenses, Photocopies, etc.
	Bad Debts			—
	Miscellaneous Operating Expenses			476
		Total Operating Expenses				29,381
			Net Gain/Loss from Business Operations					(29,381	)
B. Not related to Business Operations
	Income
		Interest Income				546
		Other Non-Operating Revenues				—
		Gross Proceeds on Sale of Assets		—
		Less: Original Cost of Assets plus expenses of sale		—
			Net Gain/Loss on Sale of Assets			—
		Total Non-Operating Income						546
	Expenses Not Related to Business Operations
		Legal and Professional Service Fees (Covered by prepetition retainer)				—
		Other Non-Operating Expenses (Board/Trustee fees)				5,418
		Total Non-Operating Expenses						5,418
NET INCOME/(LOSS) FOR PERIOD							$	(34,252	)

Page 2 of 2

DEBTOR IN POSSESSION OPERATING REPORT NO: 2

2 Aging of Accounts Payable and Accounts Receivable (exclude prepetition accounts payable):

		Accounts		Accounts
		Payable		Receivable
Current Under 30 days					—
Overdue 31-60 days			—		—
Overdue 61-90 days			—
Overdue 91-120 days			—		91,250
Overdue Over 121 days			—		7,542,934
Due in the Future			—		4,032,400
	TOTAL		—		11,666,584

3 Statement of Status of Payments to Secured Creditors and Lessors:

     No payments to Secured Creditors or Lessors were paid or payable during the reporting period.

4 Tax Liability

     No tax payments were paid or payable during the reporting period other than payroll taxes shown above.

5 Insurance Coverage

	Carrier/	Amount of		Policy		Premium Paid
	Agent Name	Coverage		Expiration Date		Through Date
Worker’s Compensation (RENEWED 1/11/02)	St. Paul		1,000,000		01/14/2003		01/14/2003
Commercial Property (RENEWED)	St. Paul		2,000,000		02/14/2003		02/14/2003
Commercial Umbrella	St. Paul		10,000,000		02/14/2002		02/14/2002
Guild Travel Accident Coverage	Hartford		500,000		02/14/2002		02/14/2002
Crime/Fiduciary Liability	Federal		1,000,000		02/14/2002		02/14/2002
Foreign GL & WC	ACE American		1,000,000		02/14/2002		02/14/2002
Errors & Omissions — Productions	AIG		6,000,000		03/03/2002		03/03/2002
Errors & Omissions — Library (RENEWED)	St. Paul		3,000,000		03/03/2003		03/03/2003
Directors and Officers	Nat'l Union		10,000,000		08/21/2002		08/21/2002
Employment Pracices Liability	Nat'l Union		5,000,000		10/31/2002		10/31/2002
Life, Peter Locke: (Beneficiary: Company)	Jefferson		5,000,000		02/14/2002		02/14/2002
Life, Donald Kushner: (Beneficiary: Company)	Lincoln		5,000,000		02/14/2002		02/14/2002

6 Questions:

A. Has the Debtor in Possession provided compensation to any officers, directors, shareholders, or other principals without the approval of the Office of the United States Trustee?

              [   ] Yes

              [X] No

              Explain:

B. Has the Debtor in Possession, subsequent to the filing of the petition, made any payments on its prepetition unsecured debt, except as authorized by the Court?

              [   ] Yes

              [X] No

              Explain:

7 Statement on Unpaid Professional Fees (Postpetition Amounts Only)

     Total unpaid post-petition Professional Fees during the reporting period: $292,823

8 Narrative Report of Significant Events and Events out of the Ordinary Course of Business:

     None.

9 Quarterly Fees:

Paid Quarterly Fee

I, Alice Neuhauser, declare under penalty of perjury that the information contained in the above Debtor in Possession Interim Statement is true and correct to the best of my knowledge.

Debtor in Possession