<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-K


              [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                  THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
                   For the fiscal year ended December 31, 2000

                                       OR


              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934
               For the transition period from            to
                        Commission file number: 001-12391

                      -----------------------------------

                                 PANAVISION INC.
             (Exact name of Registrant as specified in its charter)

               DELAWARE                                  13-3593063
   (State or other jurisdiction of          (I.R.S. Employer Identification No.)
    incorporation or organization)


         6219 DE SOTO AVENUE
      WOODLAND HILLS, CALIFORNIA                            91367
(Address of principal executive offices)                  (Zip code)


               Registrant's telephone number including area code:
                                 (818) 316-1000

           SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

    TITLE OF EACH CLASS                NAME OF EACH EXCHANGE ON WHICH REGISTERED
    -------------------                -----------------------------------------
       Common Stock                            New York Stock Exchange


        SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X   No
                                              ---     ---
         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]

         The aggregate market value of the voting stock of the Registrant held
by non-affiliates of the Registrant on March 23, 2001 was approximately $6
million. As of March 23, 2001, there were 8,769,919 shares of Panavision Inc.
Common Stock outstanding.

         Portions of the registrant's 2001 definitive proxy statement, issued in
connection with the annual meeting of stockholders, are incorporated by
reference in Part III of this Form 10-K.

THIS FORM 10-K IS BEING DISTRIBUTED TO STOCKHOLDERS IN LIEU OF A SEPARATE ANNUAL
                                    REPORT.


<PAGE>


                                 PANAVISION INC.

                       INDEX TO ANNUAL REPORT ON FORM 10-K

                      FOR THE YEAR ENDED DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                                                                    PAGE
                                                                                                    ----
                                                    PART I

<S>          <C>                                                                                      <C>
Item 1        Business...........................................................................      3

Item 2        Properties.........................................................................     11

Item 3        Legal Proceedings..................................................................     11

Item 4        Submission of Matters to a Vote of Security Holders................................     11



                                                   PART II

Item 5        Market for Registrant's Common Equity and Related Stockholder Matters..............     12

Item 6        Selected Financial Data............................................................     13

Item 7        Management's Discussion and Analysis of Financial Condition and
              Results of Operations..............................................................     14

Item 8        Financial Statements and Supplementary Data........................................     20

Item 9        Changes in and Disagreements With Accountants on Accounting
              and Financial Disclosure...........................................................     20



                                                   PART III

Item 10       Directors and Executive Officers of the Registrant.................................      *

Item 11       Executive Compensation.............................................................      *

Item 12       Security Ownership of Certain Beneficial Owners and Management.....................      *

Item 13       Certain Relationships and Related Transactions.....................................      *



                                                   PART IV

Item 14       Exhibits, Financial Statement Schedules and Reports on Form 8-K....................     21
</TABLE>

---------------
* Incorporated by reference from Panavision Inc.  2001 Proxy Statement.



                                       2
<PAGE>


                                     PART I

ITEM 1.  BUSINESS

BUSINESS OVERVIEW

     Panavision Inc. (the "Company" or "Panavision") is a leading designer,
manufacturer and supplier of high precision camera systems, comprising cameras,
lenses and accessories, for the motion picture and television industries.
Panavision has long been recognized in the motion picture and television
industries as the preeminent brand name for cinematography equipment. Since the
Company's inception in 1954, Panavision has continually introduced new camera
systems, lenses, and accessories that have become industry standards. The
Company's close relationships with producers, directors and cinematographers
results in a cooperative effort to design and produce unique systems and
accessories that meet filmmakers' creative needs.

     Panavision camera systems have been widely used in the filming of major
motion pictures over the last several decades, including the recent box office
hits GLADIATOR, THE PATRIOT, and CAST AWAY. The Company estimates that in 2000,
Panavision equipment was used in over 75% of feature films produced by major
motion picture studios and over half of the English speaking independent feature
films worldwide. The Company also estimates that in 2000 it supplied camera
equipment to over 75% of prime time episodic or "series" television productions
shot on film, such as THE WEST WING, E.R., and FRASIER. Panavision is also a
leading supplier of camera systems to the television commercial market in North
America, Europe and the Asia Pacific region.

     Panavision has received two OSCARS and 22 Awards for Scientific and
Technical Achievement from the Academy of Motion Picture Arts and Sciences. Most
recently, in March of 2001, Panavision received an Award for Scientific and
Technical Achievement for the MILLENNIUM(R) XL camera system. Additionally, In
July of 2000, Panavision received an EMMY(R) award for the development of the
MILLENNIUM(R) XL camera system. Since 1990, nine cinematographers who have won
the OSCAR for Best Cinematography used Panavision camera systems, including
recent winners, AMERICAN BEAUTY, SAVING PRIVATE RYAN and TITANIC.

     The Company believes that its position as an industry leader results from
its broad range of technologically superior and innovative products, its
long-standing collaborative relationships with filmmakers and studios, its
dedication to customer service, its breadth of its camera equipment inventory,
and its unique worldwide distribution network. Panavision is the only supplier
of cinematography equipment that manufactures a complete camera system
incorporating its own proprietary prime and zoom lenses, the most critical
components of a camera system. The Company is also the only major manufacturer
of cameras and lenses that is located near Hollywood.

     Unlike equipment manufactured by its competitors, Panavision camera systems
are not available for sale, but instead are rented exclusively through the
Company's domestic and international owned-and-operated facilities and a network
of independent agents. Panavision is the only supplier of cinematographic
equipment that has a network of rental offices and maintenance facilities
throughout North America, Europe and the Asia Pacific region. Renting, rather
than purchasing, equipment is more cost-effective for feature film, television
and commercial producers given the periods of inactivity typically experienced
between productions. In addition, renting camera systems from Panavision ensures
continual access to state-of-the-art equipment as well as the availability of
the proper equipment combinations for each specific project.

     In 2000, Panavision entered into a strategic relationship with Sony
Electronics Inc. ("Sony") which includes supplying Sony's new 24P high
definition digital cameras, combined with Panavision's specially designed new
series of PRIMO DIGITAL(TM) lenses for use in the motion picture and television
industry. These new digital systems are available for rent exclusively through
Panavision's network of owned and agent rental locations. The Sony/Panavision
system was used by LucasFilm Ltd. in 2000 to shoot episode two of the STAR WARS
series. The system has already been used on a variety of other feature films,
commercials and series television programs including TITUS and DIAGNOSIS MURDER.




                                       3
<PAGE>


     In addition to manufacturing and renting camera systems, the Company also
has rental operations providing lighting, lighting grip, power distribution,
generation and related transportation equipment. These operations include Lee
Lighting, the largest lighting rental company in the United Kingdom, as well as
other owned-and-operated facilities in Chicago, Dallas, Orlando, Toronto and
Australia. The Company also manufacturers and sells lighting filters and other
color-correction and diffusion filters through its Lee Filters operation.

     Panavision was incorporated in Delaware in 1990. Predecessors of Panavision
have been engaged in the design and manufacturing of cinematography equipment
since 1954. The Company's principal executive office is located at 6219 De Soto
Avenue, Woodland Hills, California 91367 and its telephone number is (818)
316-1000.



                                       4
<PAGE>


MARKET OVERVIEW

     FEATURE FILMS

     The rental process for feature films takes about four to seven months from
the time the producer approves the project until filming is completed and the
equipment package is returned to Panavision for servicing. The decision-makers
for the various markets are the producers, directors and cinematographers. In
general, after production is approved, the decision-makers discuss the
requirements with their Panavision sales representative and then finalize the
equipment package. The equipment is subsequently prepped at the Panavision
rental facility and shipped to the studio or location to commence principal
photography. Once the equipment is returned, the Company services its equipment
in preparation for the next rental. The average feature film rental is for 10 to
12 weeks. Panavision rents camera packages that include cameras, lenses and
accessories. The average weekly rental package price for feature films has
increased over the last several years due to the addition of value-added
proprietary lenses and accessories as well as modest price increases on existing
inventory.

     The camera and lighting rental revenue potential from feature films is
dependent on the number and types of productions filmed in any given year. The
Company views feature films in terms of major studio features and independent
features. Major studio features are typically large budget productions requiring
a greater depth of camera and lighting equipment, thus providing the greater
revenue potential for the Company. Since 1995, major studio feature film starts
per year have ranged from as low as 101 to a high of 146. In 2000, major studio
film starts were estimated to be 140, up from 112 in 1999. Worldwide independent
English speaking feature film starts since 1995 have ranged from 254 to 576. In
2000, independent starts were estimated to be 254, down from 387 in 1999.

     EPISODIC TELEVISION

     The episodic or "series" television market in North America is comprised
primarily of dramas, situation comedies and action programs produced on film
which are aired in both prime and non-prime time slots. These programs are
broadcast on the major television networks as well as on cable networks.
Panavision has established itself as the market leader, supplying equipment to
over 75% of prime time series television productions. The Company believes it
will continue to be a strong supplier to this market as it continues to offer
customers customized equipment designed for television production which provide
both economic and qualitative benefits.

     COMMERCIALS

     Although commercial productions generally last for only one to seven days,
daily rental rates for camera systems are equivalent to feature film rental
rates and represent a significant part of the camera equipment rental market.
Many of the creative people involved in the filming of commercials seek to
distinguish their products by using innovative techniques requiring
technologically advanced equipment--the ability to achieve a unique "look,"
which the Company believes can, in many cases, be achieved best by using
Panavision products. By pursuing opportunities to expand its presence in the
television commercial market, the Company believes that it can develop brand
loyalty to Panavision products and beneficial long-term relationships with
directors and cinematographers, many of whom begin their careers filming
television commercials. The Company believes this market offers opportunities
for growth.

     MOVIES OF THE WEEK

     In addition to episodic television, there are also movies of the week shot
specifically for network and cable television. Since 1995, the number of movies
of the week productions in North America has ranged from 185 to 272 per year.
The Company estimates that in 2000 there were 185 of these productions in North
America. However, due to the relatively low budgets associated with these
productions, overall cost is a major factor in the selection of the camera
equipment and, accordingly, the dollar size of this market is relatively small.



                                       5
<PAGE>


CAMERA RENTAL OPERATIONS

     Panavision supplies cinematographic equipment, such as cameras, lenses and
accessories to its customers on a project-by-project basis. The Company has a
rental inventory of over 1,000 cameras (including non-Panavision manufactured
equipment) and 5,000 lenses, as well as associated accessories. Located
throughout North America, Europe and Asia Pacific, the Company rents its
equipment through its network of owned-and-operated rental facilities and
independent agents. This network provides Panavision with a competitive
advantage, as it is the only rental company that offers clients equipment and
service on a national and worldwide basis.

     CAMERA SYSTEM PRODUCTS

     The Company is the only provider of camera systems with an integrated
design that provides customers with compatible products that are available
worldwide. Each camera package rented for a project is comprised of a number of
camera systems, each of which includes a camera, lenses and accessories. A
cinematographer's needs may include a sync-sound camera, such as the Platinum
PANAFLEX(R) and a high-speed PANASTAR(R) camera. Each camera's rental price
includes a variety of accessories such as eyepieces, viewfinders, cables and
brackets.

         FILM CAMERAS. There are two basic types of motion picture
     cameras--Synchronous, or "sync-sound," and Mit Out Sound (MOS). Sync-sound
     cameras are used to shoot pictures while recording dialogue. MOS cameras
     are used primarily to shoot high-speed footage and special effects and may
     also be used as backup cameras in situations where dialogue is not being
     recorded. The Company's camera inventory consists of both sync-sound and
     MOS cameras with various features and at a range of prices. While the
     majority of the Company's sync-sound cameras are 35mm cameras, the Company
     also has 16mm cameras, which are used primarily on episodic television
     shows, and 65mm cameras, which are used primarily for special effects and
     special venue presentations.

         The Company's inventory also includes a number of non-Panavision
     cameras that are used to supplement the Company's product line. Due to its
     ability to purchase non-Panavision cameras if there is a business need to
     do so, the Company is able to compete with independent renters of
     cinematography equipment on the same level and with the same equipment. Its
     competitors, on the other hand, do not have the corresponding ability to
     purchase Panavision equipment, as Panavision equipment is not available to
     rental companies other than the Company's agents.

         FILM LENSES. Panavision develops, designs and manufactures its own
     prime (fixed focal length) and zoom lenses, the most critical component
     affecting picture quality and an important consideration for the filmmaker.
     For many years, the Company specialized in anamorphic lenses, which are
     used for the wide-screen movie format. While the Company remains the
     world's leading supplier of these lenses, in 1985 a strategic decision was
     made to design and develop a new series of prime and zoom lenses
     specifically for cinematography applications. Accordingly, the Company
     created a line of advanced spherical lenses for the non-wide screen format,
     producing its proprietary PRIMO PRIME(R) and PRIMO ZOOM(R) lenses. The
     Primo lenses have performance characteristics that exceed the other lenses
     available in the marketplace.

         HD DIGITAL CAMERA SYSTEMS. Panavision, through its new strategic
     relationship with Sony, offers a complete state-of-the-art high definition
     digital camera system comprised of a modified version of Sony's 24P
     CINEALTA(TM) high definition digital camera coupled with Panavision's new
     series of specially designed PRIMO DIGITALTM lenses and other accessories.
     Panavision has designed this system to simulate a film system so that
     traditional film crews are comfortable with using the medium. The PRIMO
     DIGITAL(TM) lenses represent significant technological breakthroughs
     providing extremely high performance which will provide the Company with
     the opportunity to build on its leadership position for many years to come.

         ACCESSORIES. In order to provide its customers with a fully integrated
     camera system, the Company frequently introduces new camera accessories and
     currently offers an extensive range of products requested by and developed
     in conjunction with filmmakers. Certain accessories may reduce overall
     production costs by lowering the labor intensiveness of the production
     process and thereby decreasing the shooting days. Moreover, an accessory
     product often achieves such widespread acceptance among the Company's
     customers that the Company incorporates it into the base camera package,
     thereby increasing the overall package price.



                                       6
<PAGE>


     RESEARCH AND PRODUCT DEVELOPMENT

     The Company's research and development group is currently comprised of
approximately 50 mechanical, software, electronic and optical engineers,
draftsmen and machinists. Additionally, the research and development group has a
dedicated machine shop that manufactures prototype equipment. These internal
capabilities enable the Company to develop proprietary technology in
collaboration with filmmakers to address their unique requirements. Panavision
also operates another research and development facility in Cambridge,
Massachusetts. The Company has long been a leader in the research and
development of film camera lenses. Since the first Panavision lens was
introduced in 1957, the Company has introduced many innovative spherical and
anamorphic lenses, including the Primo series which won Academy Awards in 1990,
1991, 1994, 1995 and 1999. During 2000, the Company launched a new series of
specially designed PRIMO DIGITAL(TM) lenses for use with the Sony 24P
CINEALTA(TM) digital camera. These lenses are among the most sophisticated and
highest performing lenses the Company has ever produced.

     Research and development expenses for the years ended 2000, 1999, and 1998
was $6.2 million, $6.1 million and $4.5 million, respectively.

     MANUFACTURING AND ASSEMBLY

     The Company manufactures cameras, lenses and accessories designed by the
Company's in-house research and development staff. The Company has over 315
non-union employees at its 150,000 square foot manufacturing facility in
Woodland Hills, California, located near Hollywood.

     The Company develops and designs all the critical components for its camera
systems, including the camera movement and lens. An entire camera system
consists of hundreds of parts, each carefully produced, assembled and tested.
The manufacturing process takes up to four months and primarily involves the
fabrication and assembly of camera and lens components by over 100 highly
skilled workers, each of whom generally has an area of specialization. Following
the assembly process, each camera system is rigorously tested to achieve the
high standard of performance that customers expect from Panavision.

     While the Company manufactures most of the components internally, certain
components and subassembly work, including glass grinding, lens element
polishing and die casting, are outsourced to selected suppliers. The Company has
developed long-standing relationships with its significant suppliers and
believes that they will continue to supply high-quality products in quantities
sufficient to satisfy its requirements. Since certain components, particularly
the lens element, require long lead times, precise production schedules are
critical. Inventory levels are determined based on input from marketing,
operations and the agent network. The Company maintains a fairly constant
production schedule in order to efficiently utilize its resources and service
its customers' requirements.

     MARKETING AND CUSTOMER SERVICE

     The principal decision-makers in the selection of the camera packages are
cinematographers, directors and producers, who view their cameras and related
equipment as critical artistic tools. Camera packages typically comprise a very
small percentage of a production budget. Accordingly, absent budget constraints,
the selection of equipment is driven by its suitability, technological
capabilities and reliability, as well as by the degree to which the manufacturer
or renter is able to rapidly service the technical needs of the filmmaker, both
before and during film production.

     The Company's skilled sales representatives have established close working
relationships with numerous filmmakers. To cultivate these relationships, the
Company assigns to each production a sales representative who possesses skills
and experience appropriate to the needs of that production. Based on discussions
with the filmmaker, the sales representative recommends a camera package
tailored to achieve the filmmaker's desired visual effect and meet the
production's budget. In addition, sales representatives provide further advice
and support by visiting film production sites throughout the production. As a
result of providing high-quality customer service, many of the Company's
representatives have been working with the same filmmakers throughout their
careers and in many instances the collaborative effort with the filmmaker has
prompted the design of innovative camera systems and accessories.

     After preliminary decisions have been made with respect to the proper
camera package, the camera equipment is delivered to a preparation room in one
of the Company's facilities reserved for that filmmaker. The filmmaker, together
with his own and Panavision's representatives, then inspects, tests and
experiments with the equipment at the facility's prep floor, sound stage, film
studio and screening room.



                                       7
<PAGE>


     DISTRIBUTION

     Camera packages are rented to the motion picture and television industries
through rental offices owned and operated by Panavision as well as by
independent agents. These rental offices serve as a single point of contact for
the cinematographers and often provide services including maintenance and
technical advice. Panavision is the only manufacturer to have a significant
portion of its revenue generated through owned-and-operated rental houses,
primarily because of the Company's choice not to sell its equipment. The Company
does not currently intend to begin selling its camera systems.

     Panavision owns and operates camera rental and camera and lighting rental
facilities worldwide in North America, Europe and Asia Pacific.

     In addition to its owned-and-operated facilities, the Company serves its
customers through a network of domestic and international third-party agents who
are responsible for the rental of the Company's equipment in locations that are
not serviced by the owned-and-operated facilities. Agents pay approximately 60%
of their rental revenue to the Company and retain the balance, which is charged
as a commission expense in the Company's statement of operations. All of the
Company's agents are well trained in the use of Panavision equipment and are
supported by the Company's technical staff.

     For information as to the Company's operations in different business
segments and geographical areas, see Note 10 of Notes to the Consolidated
Financial Statements of the Company included elsewhere in this Form 10-K.

     COMPETITIVE STRENGTHS

         REPUTATION FOR QUALITY AND TECHNOLOGICALLY ADVANCED PRODUCTS.
     Panavision is recognized as the industry leader in the development of high
     quality, technologically advanced camera systems and its products have
     become industry standards. Panavision has received two OSCARS and 22 other
     Academy Awards granted for Scientific and Technical Achievement, including
     a 2001 award for the MILLENNIUM(R) XL camera system, a 2000 award for the
     MILLENNIUM(R) camera viewfinder, a 1999 award for the development of the
     Primo lens series, and a 1998 award for the Panavision/Frazier Lens System.
     In addition to the development of new products, Panavision is also able to
     upgrade its existing inventory to meet continually changing market demands,
     thereby reducing obsolescence, achieving better control of inventory and
     product availability, and providing its customers with access to the latest
     technological advances.

         RANGE AND BREADTH OF CAMERA EQUIPMENT. Panavision believes that it has
     the world's largest inventory of camera systems, with over 1,000 cameras
     and 5,000 lenses. It also offers a broad range of choices, including
     equipment that is exclusively available through Panavision and its agents.
     The Company believes that the range and breadth of its camera inventory
     enable it to serve a greater number of productions throughout the world
     with the ability to serve multiple large-scale feature film productions
     simultaneously.

         CLOSE RELATIONS WITH FILMMAKERS. As a result of Panavision's
     significant relationships with cinematographers, directors and producers
     and its leading market position, Panavision gains early access to
     productions and is able to influence the selection of camera systems.
     Additionally, Panavision offers instruction and training in the handling of
     Panavision equipment to young directors and cinematographers while they are
     still in film school and thereafter, thereby developing loyalty to
     Panavision and providing a foundation for Panavision to sustain its strong
     market position. Panavision is the only major manufacturer of cameras and
     lenses located in the Hollywood area, enabling the Company to develop close
     relationships with filmmakers as well as enabling the Company to respond
     rapidly to its customers' needs.

         DEDICATION TO CUSTOMER SERVICE. Panavision places special emphasis on
     customer service. The Company's customer service, repair and maintenance
     personnel are "on call" and available to assist customers 24 hours a day.
     In order to provide filmmakers with a high level of support, the Company
     sends marketing representatives and technicians to film production sets to
     provide advice or immediate assistance with any equipment needs or
     questions. The Company assigns to each production a sales representative
     who possesses skills and experience appropriate to the needs of that
     production in an attempt to foster a strong and lasting working
     relationship with the customer. In addition, as part of its customer
     service, the Company often develops, customizes or procures equipment for
     specific customers or projects.



                                       8
<PAGE>


     CONTROL OVER MANUFACTURING AND DISTRIBUTION PROCESS. Panavision is the only
     vertically integrated renter of camera, lens, and accessory systems to the
     film and television industry. The Company's control over both the
     manufacturing and distribution processes enables it to (i) rapidly
     incorporate technological development and filmmakers' suggestions into new
     products, (ii) maintain product exclusivity and (iii) offer products with
     greater quality and higher performance at a premium price.

         WORLDWIDE DISTRIBUTION NETWORK. Panavision is the only camera and
     lighting operation with an extensive worldwide distribution network,
     including 25 owned and operated facilities throughout North America, Europe
     and Asia Pacific. These facilities offer a large inventory of rental
     equipment, on-site technical expertise, knowledgeable market specialization
     (feature films, episodic television, movies of the week, commercials), and
     strong customer support. The Company also serves its customers through a
     network of 20 international third-party agent offices, who are responsible
     for the rental of the Company's equipment in locations that are not served
     by the owned and operated facilities.

     COMPETITION

     The market for high-precision cinematography equipment is highly
competitive, primarily driven by technology, customer service and, to a lesser
extent, price. As a manufacturer of cinematography equipment, the Company has
two primary competitors, Arriflex, based in Munich, Germany, and Moviecam, based
in Vienna, Austria. Both of these companies manufacture only cameras and certain
accessories, primarily for sale to rental houses and individuals that are not
the end users. Because Panavision manufactures lenses, cameras, and a full range
of accessories, has close relationships with filmmakers and has in-house design
and manufacturing capabilities, the Company believes that it is better able to
develop the innovative camera systems demanded by its customers.

     As a renter of cinematography equipment, the Company competes with numerous
rental facilities, which must purchase their equipment from other manufacturers
and then rent that equipment to their customers. While the overall rental
business is price competitive and subject to discounting, the Company has chosen
to compete on the basis of its large inventory base, technologically advanced
proprietary products, broad product line, extensive sales and marketing force
and commitment to customer service. The Company believes that it, as both the
manufacturer and rental house, is able to respond to many user requests on
shorter notice and more effectively than its rental competitors. In addition to
its existing competitors, the Company may encounter competition from new
competitors, as well as from new types of equipment.

LIGHTING RENTAL OPERATIONS

     In addition to manufacturing and renting camera systems, the Company rents
lighting, lighting grip, transportation and distribution equipment and mobile
generators used in the production of feature films, television programs and
commercials, outside broadcasts and other events from its owned-and-operated
facilities located in the United Kingdom, Chicago, Dallas, Orlando, Toronto and
Australia.

     Lee Lighting is the largest lighting rental operation in the United
Kingdom. Lee Lighting currently has the largest inventory of lampheads, the core
element of lighting equipment used by filmmakers in all areas of the industry,
in the United Kingdom. Lee Lighting operates lighting rental operations in
London, Bristol, Manchester and Glasgow, each of which has its own rental
inventories. From these four locations, Lee Lighting is able to service any
production in England, Wales or Scotland. In addition, Lee Lighting maintains a
rental base at Shepperton Studios, the second largest studio complex in the
United Kingdom for the production of feature films.

     In 1999, Panavision expanded its lighting business geographically into
Australia through the acquisition of lighting assets from several small local
lighting rental operations. The lighting assets were acquired primarily in the
second quarter of 1999.



                                       9
<PAGE>


     COMPETITIVE STRENGTHS

         REPUTATION FOR OUTSTANDING SERVICE. Over the last two decades
     Panavision and its Lee Lighting operations have developed a reputation
     among producers of feature films, television programs and commercials for
     providing outstanding service. Lee Lighting is the only lighting company in
     the United Kingdom that supplies its own electricians in connection with
     the rental of its equipment. This service force is on call 24 hours a day,
     seven days a week and is supplemented by freelance labor when required.
     This affords Lee Lighting the competitive advantage of providing customers
     with a higher quality and more consistent service, which is critical to
     success in capturing feature film work.

         DEPTH OF INVENTORY. The Company believes that its extensive inventory
     of equipment provides it with an important competitive advantage. Its
     substantial inventory enables various lighting operations to service
     projects with large-scale equipment and personnel requirements, such as
     feature films and outside broadcasts, while still maintaining sufficient
     capacity to service other projects simultaneously. Lee Lighting maintains
     the largest rental asset base of lighting equipment, transport, mobile
     generators and power distribution equipment in the United Kingdom.

         EXPERIENCED MANAGEMENT. Panavision's worldwide lighting rental
     operations employ senior management who have developed relationships over
     many years with influential individuals in the motion picture and
     television industries. Under this management there is a sizable field force
     of gaffers and electricians who work exclusively with Panavision.

     COMPETITION

     Panavision's lighting rental operations service both the motion picture and
television industries, including studio programs, outside broadcasts,
commercials and movies of the week. These markets require a similar range of
lighting productions and related support equipment; however, feature films and
episodic television programs generally require larger equipment packages than
commercials. The composition of equipment packages is frequently determined by
the producer, director or cinematographer, who may desire a specific type of
image or lighting effect. Although Panavision's worldwide inventory of lighting
equipment is extensive, the lighting rental market is price competitive.

SALES & OTHER OPERATIONS

     In addition to the camera and lighting rental operations, the Company also
manufactures and sells lighting filters through its Lee Filters operations in
the United Kingdom and the United States. Panavision also sells various
consumable products such as light bulbs and gaffer tape, which are used in all
types of production.

     Lee Filters is a manufacturer of light control media for the motion
picture, television and theater industries. The majority of Lee Filters'
business is the sale of filters or gels used by lighting directors to control or
correct lighting conditions during productions. Lighting filter distribution, on
a worldwide basis, is handled primarily through a network of third-party dealers
who have been selected because of their specific knowledge of the filters market
in their respective countries. In the United Kingdom, Lee Filters sells on a
direct basis to end users and rental houses as well as to distributors and
dealers.

THE PANAVISION RECAPITALIZATION

     On June 4, 1998, as contemplated by (i) an Agreement of Recapitalization
and Merger, dated as of December 18, 1997 (the "Recapitalization Agreement"), by
and among PX Holding Corporation ("PX Holding"), PX Merger Corporation (the
"Merger Sub") and Panavision Inc. (the "Company"), and (ii) an Amended and
Restated Voting and Stockholders Agreement, dated as of April 16, 1998 (the
"Stockholders Agreement"), by and among Warburg Pincus Capital Company, L.P., a
Delaware limited partnership ("Warburg"), the Company and Mafco Holdings Inc.
("Mafco"), a Delaware corporation, the Company consummated a merger whereby
Merger Sub was merged with and into the Company (the "Merger"), with the Company
remaining as the surviving corporation.

     As a result of the Merger, PX Holding, a wholly owned subsidiary of Mafco,
the sole stockholder of which is Ronald O. Perelman, acquired an approximately
91% controlling interest in the Company at that time. Other stockholders owned
approximately 9% of Panavision Common Stock at that time.



                                       10
<PAGE>

     The Merger was accounted for as a leveraged recapitalization as there was a
significant continuation of stockholder ownership.

INTELLECTUAL PROPERTY


     The Company relies on a combination of patents, licensing arrangements,
trade names, trademarks, service marks, trade secrets know-how and proprietary
technology to protect its intellectual property rights. The Company owns or has
been assigned or licensed under several domestic and foreign patents and patent
applications relating to its cameras, lenses and accessories. The Company also
owns or has been assigned several domestic and foreign trademark or service mark
registrations including PANAVISION(R), PANAFLEX(R), PANAHEAD(R), PANALITE(R),
PANAVID(R), PANASTAR(R), PRIMO ZOOM(R), PRIMO MACRO ZOOM(R), PRIMO-L(R),
3-PERF(R), MILLENNIUM(R) and ULTRAVIEW(R) which are material to its business.


ENVIRONMENTAL MATTERS

     The Company is subject to foreign, federal, state and local environmental
laws and regulations relating to the use, storage, handling, generation,
transportation, emission, discharge, disposal and remediation of hazardous and
non-hazardous substances, materials and wastes ("Environmental Laws"). The
Company also is subject to laws and regulations relating to worker health and
safety. The Company believes that its operations are in substantial compliance
with all applicable Environmental Laws. Although no material capital or
operating expenditures relating to environmental controls or other environmental
matters are currently anticipated, there can be no assurance that the Company
will not incur costs in the future relating to environmental matters that would
have a material adverse effect on the Company's business or financial condition.

EMPLOYEES

     As of December 31, 2000, the Company had a total of approximately 1,284
full-time employees, consisting of 552 employees based in North America, 590
employees based in Europe, and 142 employees based in the Asia Pacific region.
The Company is not a party to any collective bargaining agreements. The Company
believes that its relationships with its employees are good.

ITEM 2.  PROPERTIES

     The Company's headquarters and principal manufacturing facility are located
at its 150,000 square-foot facility in Woodland Hills, California. The Company
operates domestic rental facilities in Woodland Hills, Hollywood, Chicago,
Dallas, Orlando and Wilmington and a research facility in Cambridge,
Massachusetts. To service its international markets, Panavision operates rental
facilities in Toronto and Vancouver, Canada, Dublin, Ireland, London (three),
Manchester, England and Glasgow, Scotland, Paris (two) and Marseilles, France,
Prague, Czech Republic, Warsaw, Poland, Sydney (two), Queensland and Melbourne,
Australia, and Auckland and Wellington, New Zealand. Lee Lighting operates
rental facilities in London, Bristol and Manchester, England and Glasgow and
Edinburgh, Scotland. Lee Filters has a sales operation in Burbank, California,
as well as a manufacturing facility located in Andover, England. All of the
Company's facilities are leased, with the exception of a small fabricating
facility in Moss Vale, Australia and its facility located in Glasgow, Scotland,
which are owned.

ITEM 3.  LEGAL PROCEEDINGS

     The Company is not engaged in any legal proceeding other than ordinary
routine litigation incidental to its business. Panavision does not believe that
any such proceedings currently pending will have a material adverse effect on
its business or financial condition.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters were submitted to a vote of security holders during the fourth
quarter of 2000.



                                       11
<PAGE>


                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

         Panavision Common Stock is listed on the New York Stock Exchange
("NYSE") under the symbol "PVI." From time to time, the Company has fallen below
certain continued listing criteria of the NYSE. Specifically, the Company has
total market capitalization of less than $50 million and stockholders' equity of
less than $50 million. The Company has been in communication with officials of
the NYSE and has adopted a business strategy towards achieving the required
standards in the future.


         As of March 23, 2001, there were approximately 983 holders of
Panavision Common Stock comprised of approximately 53 record holders and 930
beneficial holders.


                                                 STOCK SALES PRICES
                                     -----------------------------------------
                                          High           Low         Closing
                                     ------------- ------------- -------------
         2000
         ----
         First Quarter.............     $11 3/4        $4 5/16       $9
         Second Quarter............       9 1/2         7 3/16        8 1/4
         Third Quarter.............      10             6 5/8         6 15/16
         Fourth Quarter............       6 15/16       2 1/2         2 3/4

         1999
         ----
         First Quarter.............     $12 13/16      $8 7/8        $8 15/16
         Second Quarter............       9 5/16        6 3/4         6 3/4
         Third Quarter.............       8 1/2         5 5/8         5 5/8
         Fourth Quarter............       5 5/8         4 1/8         4 11/16


         The Company has never paid a cash dividend on Panavision Common Stock
and does not anticipate paying any cash dividends on Panavision Common Stock in
the foreseeable future. The current policy of the Company's Board of Directors
is to retain earnings to finance the operations and expansion of the Company's
business. In addition, the Company's existing credit agreement restricts the
Company's ability to pay dividends to its stockholders (see Item 7 "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
Note 7 of Notes to the Consolidated Financial Statements of the Company).



                                       12
<PAGE>
ITEM 6.  SELECTED FINANCIAL DATA

The following selected financial data has been derived from the Consolidated
Financial Statements that have been audited by Ernst & Young LLP, independent
auditors. The information set forth below is not necessarily indicative of
results of future operations, and should be read in conjunction with Item 7
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and the Consolidated Financial Statements and related Notes thereto
included elsewhere in this Form 10-K.

<TABLE>
<CAPTION>
                                                                       YEAR ENDED DECEMBER 31,
                                                   --------------------------------------------------------------
                                                       2000         1999         1998       1997(1)      1996(2)
                                                   ------------  -----------  -----------  ----------  ----------
STATEMENT OF OPERATIONS DATA:                                 (In thousands, except per share amounts)
<S>                                               <C>           <C>           <C>          <C>         <C>
Revenue........................................    $  204,628    $  202,751    $ 192,886    $ 176,863   $ 124,638
Cost of revenue................................       110,295       110,608      105,068       90,879      59,473
                                                   ------------  -----------  -----------  ----------  ----------
Gross margin...................................        94,333        92,143       87,818       85,984      65,165
Selling, general and administrative expenses           57,376        59,428       54,405       47,575      30,688
Research and development expenses..............         6,163         6,103        4,539        4,494       4,310

Charges in connection with the Panavision
     Recapitalization (3)......................             -             -       58,726            -          -
                                                   ------------  -----------  -----------  ----------  ----------
Operating income (loss)........................        30,794        26,612      (29,852)      33,915      30,167
Net interest expense (3).......................       (48,255)      (42,285)     (28,316)      (6,385)     (7,435)
Net other income (expense) (4).................        (1,303)        1,435        3,369        1,210      (1,425)
                                                   ------------  -----------  -----------  ----------  ----------
Income (loss) before non-controlling partners'
   interest in PILP and income taxes                  (18,764)      (14,238)     (54,799)      28,740      21,307
Non-controlling partners' interest in PILP(5)               -             -            -            -      (4,500)
                                                   ------------  -----------  -----------  ----------  ----------
Income (loss) before income taxes..............       (18,764)      (14,238)     (54,799)      28,740      16,807
Income tax provision...........................        (4,881)       (1,800)        (322)    (  9,252)     (3,536)
                                                   ------------  -----------  -----------  ----------  ----------
Net income (loss)..............................    $  (23,645)   $  (16,038)   $ (55,121)   $  19,488   $  13,271
                                                   ============  ===========  ===========  ==========  ==========
Basic earnings (loss) per share................    $    (2.83)   $    (1.99)   $   (4.35)   $    1.07   $    0.94
                                                   ============  ===========  ===========  ==========  ==========
Diluted earnings (loss) per share..............    $    (2.83)   $    (1.99)   $   (4.35)   $    1.03   $    0.84
                                                   ============  ===========  ===========  ==========  ==========
Shares used in computation - Basic.............         8,366         8,056       12,673       18,174      14,130
Shares used in computation - Diluted...........         8,366         8,056       12,673       19,012      15,733
EBITDA (6).....................................    $   69,612    $   65,769    $  65,292    $  61,803   $  47,577

<CAPTION>
                                                                            DECEMBER 31,
                                                   --------------------------------------------------------------
                                                       2000         1999         1998         1997        1996
                                                   ------------  -----------  -----------  ----------  ----------
<S>                                               <C>           <C>           <C>          <C>         <C>
BALANCE SHEET DATA:

Total assets...................................    $  284,712    $  291,558    $ 291,757    $ 281,937   $ 176,746
Total current liabilities......................        50,133        41,245       33,078       44,334      27,214
Long-term debt (3).............................       477,425       473,429      463,605      119,999      55,000
Stockholders' equity/(deficiency) (3)..........      (250,302)     (231,240)    (213,765)     109,444      93,018
</TABLE>
---------------

(1)  Includes operating results of the Film Services Group since June 5, 1997,
     the date of its acquisition.

(2)  Includes operating results of Lee Lighting Limited since its acquisition
     effective July 1, 1996.

(3)  In connection with the Panavision Recapitalization transaction, the Company
     recorded $10.1 million of transaction-related expense and a compensation
     charge of $48.6 million, related to the purchase of shares and retirement
     of options. Additionally, the Company increased long-term borrowings
     outstanding and related interest expense as part of the Panavision
     Recapitalization transaction. See Note 2 of Notes to the Consolidated
     Financial Statements of the Company included elsewhere in this Form 10-K.

(4)  In the fourth quarter of 1996, deferred financing costs in the amount of
     $1.8 million were written off.

(5)  In the 1996 Recapitalization, the Company acquired the non-controlling
     partners' interest in Panavision International L.P. ("PILP") effective May
     8, 1996. Accordingly, there has been no further allocation of PILP's income
     to non-controlling partners. See previously issued Form 10-K's for further
     information on the 1996 Recapitalization.

(6)  EBITDA is calculated by adding back all depreciation and amortization and
     net interest expense to income/(loss) before income taxes and excluding
     unrealized foreign exchange gains and losses and the non-controlling
     partners' interest in PILP. EBITDA for 1998 has been adjusted by adding
     back the $58.7 million of charges in connection with the Panavision
     Recapitalization to actual EBITDA.


                                       13
<PAGE>


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

     The following should be read in conjunction with the Consolidated Financial
Statements of Panavision and the Notes thereto included elsewhere in this Form
10-K.

INTRODUCTION

     THE PANAVISION RECAPITALIZATION

     On June 4, 1998, as contemplated by (i) an Agreement of Recapitalization
and Merger, dated as of December 18, 1997 (the "Recapitalization Agreement"), by
and among PX Holding Corporation ("PX Holding"), PX Merger Corporation (the
"Merger Sub") and Panavision Inc. (the "Company"), and (ii) an Amended and
Restated Voting and Stockholders Agreement, dated as of April 16, 1998 (the
"Stockholders Agreement"), by and among Warburg Pincus Capital Company, L.P., a
Delaware limited partnership ("Warburg"), the Company and Mafco Holdings Inc.
("Mafco"), a Delaware corporation, the Company consummated a merger whereby
Merger Sub was merged with and into the Company (the "Merger"), with the Company
remaining as the surviving corporation.

     As a result of the Merger, PX Holding, a wholly owned subsidiary of Mafco,
the sole stockholder of which is Ronald O. Perelman, acquired an approximately
91% controlling interest in the Company at that time. Other stockholders owned
approximately 9% of Panavision Common Stock at that time.

     The Merger was accounted for as a leveraged recapitalization as there was a
significant continuation of stockholder ownership.

RESULTS OF OPERATIONS

     The following discussion and analysis includes the Company's consolidated
historical results of operations for 2000, 1999 and 1998.

YEAR ENDED DECEMBER 31, 2000 COMPARED TO YEAR ENDED DECEMBER 31, 1999

     CAMERA RENTAL OPERATIONS

     Camera rental revenue for the year ended December 31, 2000 was $130.0
million. Revenue decreased $0.8 million, or 0.6%, compared to 1999. Exchange
rate changes adversely affected the year-to-year comparisons by almost $4.7
million, reflecting the impact of weaker European and Australian currencies
versus the U.S. dollar. Revenue, at constant exchange rates, reflects increases
in rentals associated with feature film productions in Europe and higher series
television revenue in North America, offset by lower rental revenue generated
from U.S. television commercial production. U.S. commercial revenue, which was
adversely impacted by the Screen Actors Guild strike from May 2000 through
October 2000, was $1.7 million lower than the corresponding May-October period
of 1999.

     Cost of camera rental for the year was $61.1 million, a decrease of $2.4
million, or 3.8%, as compared to 1999. The decrease was primarily due to lower
maintenance cost on rental equipment and the favorable impact of translating
expenses of operations denominated in weaker currencies to the U.S. dollar.

     LIGHTING RENTAL OPERATIONS

     Lighting rental revenue for the year ended December 31, 2000 was $40.3
million, an increase of $4.1 million, or 11.3%, compared to 1999. The increase
primarily reflects stronger feature film revenue at Lee Lighting and additional
rentals generated on the lighting equipment acquired in Australia in the second
quarter of 1999. Exchange rate changes adversely affected the year-to-year
comparisons by approximately $2.7 million.



                                       14
<PAGE>


     Cost of lighting rental for the year was $30.0 million, an increase of $3.4
million, or 12.8%, from 1999. The change is primarily due to increased costs
associated with the growth in revenue at Lee Lighting and the expansion of the
Australian lighting operation.

     SALES AND OTHER

     Sales and other revenue in the year ended December 31, 2000 declined $1.4
million, or 3.9%, from the year ended December 31, 1999. Adverse currency
effects accounted for the decline.

     OPERATING COSTS

     Selling, general and administrative expenses for the year ended December
31, 2000 were $57.4 million, a decrease of $2.0 million, or 3.4%, as compared to
1999. The decrease reflects the impact of cost control efforts implemented
during the year and the favorable impact of weaker currencies versus the U.S.
dollar.

     Research and development expenses for 2000 were $6.2 million, an increase
of $0.1 million from 1999. The increase was primarily due to increased costs
related to the development of products for digital application.

     INTEREST, TAXES AND OTHER

     Net interest expense for the year ended December 31, 2000 was $48.3
million, an increase of $6.0 million, or 14.2%, from 1999. The increase
primarily reflects higher interest rates and debt levels as compared to the year
ended December 31, 1999.

     Net other expense for 2000 was $1.3 million, compared to net other income
of $1.4 million in 1999. The change primarily reflects lower gains on the sale
of fixed assets and year-to-year changes in foreign exchange gains and losses.

     The tax provision was $4.9 million and $1.8 million for the years ended
December 31, 2000 and 1999, respectively. The tax provision relates to the
recording of taxes associated with profitable foreign operations and foreign
taxes withheld at source without a corresponding tax benefit being recorded for
U.S. losses. As of February 1, 1999, the Company and certain of its subsidiaries
and Mafco entered into a tax sharing agreement (the "Tax Sharing Agreement"),
pursuant to which Mafco has agreed to indemnify the Company against federal,
state or local income tax liabilities of the consolidated or combined group of
which Mafco (or a subsidiary of Mafco other than the Company or its
subsidiaries) is the common parent for taxable periods beginning on or after
February 1, 1999 during which the Company or a subsidiary of the Company is a
member of such group. See Note 6 of the Consolidated Financial Statements for
additional information regarding the Tax Sharing Agreement.

YEAR ENDED DECEMBER 31, 1999 COMPARED TO YEAR ENDED DECEMBER 31, 1998

     CAMERA RENTAL OPERATIONS

     Camera rental revenue for the year-end December 31, 1999 was $130.8
million. Revenue increased $0.8 million, or 0.6%, compared to 1998. Revenue was
impacted by a year-to-year decline in both major studio and independent film
starts. Geographically, the camera revenue increase was primarily due to higher
revenue associated with feature film productions in California and Western
Canada, partially offset by a decrease in camera rental revenue in the U.K.

     Cost of camera rental for 1999 was $63.5 million, an increase of $1.4
million, or 2.3%, as compared to 1998. The increase reflects a $1.0 million
increase in depreciation on newly capitalized rental equipment and other
increases related to the growth in camera rental revenue.



                                       15

<PAGE>


     LIGHTING RENTAL OPERATIONS

     Lighting rental revenue for the year ended December 31, 1999 was $36.2
million, an increase of $8.9 million, or 32.6%, compared to 1998. The increase
reflects additional lighting rentals generated on the lighting equipment
acquired in Australia in the second quarter of 1999, and higher feature film
revenue at Lee Lighting.

     Cost of lighting rental for 1999 was $26.6 million, an increase of $5.1
million, or 23.7%, from 1998. The increase was primarily due to the increase in
costs associated with the expansion of the Australian lighting operation and
increased costs associated with the growth in revenue at Lee Lighting.

     OPERATING COSTS

     Selling, general and administrative expenses for the year ended December
31, 1999 were $59.4 million, an increase of $5.0 million, or 9.2%, from 1998.
The increase was the result of additional costs associated with the expansion of
the Australian lighting operation, higher information systems development costs
and other corporate expenses.

     Research and development expenses for 1999 were $6.1 million, an increase
of $1.6 million, or 35.6%, from 1998. The increase was primarily due to
increased costs related to the development of products for digital application.

     INTEREST, TAXES AND OTHER

     Charges in connection with the Panavision Recapitalization, for the year
ended December 31, 1998, totaled $58.7 million consisting of a compensation
charge of $48.6 million and a transaction expense charge of $10.1 million. The
compensation charge resulted from the retirement of options and purchase of
converted stock held by directors, officers and other key management upon
consummation of the Panavision Recapitalization.

     Net interest expense for the year ended December 31, 1999 was $42.3
million, an increase of $14.0 million, or 49.5%, from 1998. The increase was due
to increased borrowings following the Panavision Recapitalization and an
increase in interest rates as compared to 1998.

     Net other income for 1999 was $1.4 million, a decrease of $2.0 million from
1998. The decrease primarily reflects lower gains on the sale of fixed assets
and year-to-year changes in foreign exchange gains and losses. The prior year
included a $0.8 million gain on the sale of facilities in the U.K.

     The tax provision was $1.8 million and $0.3 million for the years ended
December 31, 1999 and 1998, respectively. The tax provision relates to the
recording of taxes associated with profitable foreign operations and foreign
taxes withheld at source without a corresponding tax benefit being recorded for
U.S. losses. As of February 1, 1999, the Company and certain of its subsidiaries
and Mafco entered into a tax sharing agreement (the "Tax Sharing Agreement"),
pursuant to which Mafco has agreed to indemnify the Company against federal,
state or local income tax liabilities of the consolidated or combined group of
which Mafco (or a subsidiary of Mafco other than the Company or its
subsidiaries) is the common parent for taxable periods beginning on or after
February 1, 1999 during which the Company or a subsidiary of the Company is a
member of such group. See Note 6 of the Consolidated Financial Statements for
additional information regarding the Tax Sharing Agreement.



                                       16
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

     The following table sets forth certain information from the Company's
Consolidated Statements of Cash Flows for the years indicated (in thousands):

                                                 YEAR ENDED DECEMBER 31,
                                         ---------------------------------------
                                            2000          1999          1998
                                         -----------  ------------  ------------
     Net cash provided by (used in):
     Operating activities..............  $  24,752     $  29,199     $   40,705
     Investing activities..............    (28,978)      (32,332)       (43,613)
     Financing activities..............      4,033        (1,314)         1,934


     Cash provided by operating activities, for the year ended December 31,
2000, totaled $24.8 million comprised of the net loss of $23.6 million, adjusted
for depreciation and amortization of $37.9 million and the amortization of the
discount on the Notes of $17.7 million, offset by the net change in working
capital (excluding cash) and other miscellaneous items totaling $7.2 million.
Investing activities of $29.0 million included $30.7 million of capital
expenditures, offset by $1.7 million in proceeds received from the disposition
of fixed assets. The majority of the capital expenditures were used to
manufacture camera rental systems and accessories. Cash provided by financing
activities was $4.0 million, reflecting the capital contribution from Sony (see
Note 14 to the Consolidated Financial Statements) and a reduction in net
borrowings under the Credit Agreement.

     Cash provided by operating activities, for the year ended December 31,
1999, totaled $29.2 million comprised of the net loss of $16.0 million, adjusted
for depreciation and amortization of $36.9 million and the amortization of the
discount on the Notes of $16.1 million, offset by the net change in working
capital (excluding cash) and other miscellaneous items totaling $7.8 million.
Investing activities of $32.3 million included $35.6 million of capital
expenditures, offset by $3.3 million in proceeds received from the disposition
of fixed assets. The majority of the capital expenditures were used to
manufacture camera rental systems and accessories. Cash used in financing
activities was $1.3 million, primarily reflecting a reduction in net borrowings
under the Credit Agreement for the year.

     Cash provided by operating activities, for the year ended December 31,
1998, was $40.7 million comprised of the net loss of $55.1 million, adjusted for
depreciation and amortization of $33.2 million, amortization of the discount on
the Notes of $13.1 million and adjusted for charges in connection with the
Panavision Recapitalization of $58.7 million, offset by the net change in
working capital (excluding cash) and other miscellaneous items totaling $9.2
million. Investing activities of $43.6 million included $50.0 million of capital
expenditures, offset by $6.4 million of proceeds received from the disposition
of fixed assets. The majority of the capital expenditures were used to
manufacture camera rental systems. Cash provided by financing activities was
$1.9 million. Borrowings of $463.2 million and the contribution by Mafco of
$154.4 million were used to repay outstanding borrowings under the previous
credit agreement of $129.2 million in the second quarter and to redeem and
retire stock options (net of the proceeds from the exercise of options) of
$481.5 million. In addition, $3.9 million was used to re-pay a portion of
borrowings under the previous credit agreement during the first quarter of 1998.

     As of December 31, 2000, amounts outstanding under the Credit Agreement
were $216.0 million and $82.3 million for the term facilities and revolving
facility, respectively. The revolver is a 6-year facility with a maximum
aggregate principal amount of $100.0 million.

     The Company intends to use the cash provided by operating activities to
make additional capital expenditures to manufacture camera systems and
accessories and purchase other rental equipment. Although there can be no
assurance, the Company believes that its existing working capital together with
borrowings under the Credit Agreement and anticipated cash flow from operating
activities will be sufficient to meet its expected operating and capital
spending requirements for the foreseeable future. The Company will not be
required to pay interest on the Notes until August 1, 2002, which management
believes will assist the Company in implementing its strategy.




                                       17
<PAGE>


     Panavision currently anticipates that in order to pay the principal amount
at maturity of the Notes or upon the occurrence of an Event of Default (as
defined in the Notes), to redeem the Notes or to repurchase the Notes upon the
occurrence of a Change of Control (as defined in the Notes), Panavision will be
required to adopt one or more alternatives, such as seeking capital
contributions or loans from its affiliates, refinancing its indebtedness or
selling its equity securities. None of the affiliates of the Company will be
required to make any capital contributions or other payments to the Company with
respect to the Company's obligations on the Notes, and the obligations of the
Company with respect to the Notes will not be guaranteed by any affiliate of the
Company or any other person. There can be no assurance that any of the foregoing
actions could be effected on satisfactory terms, that they would be sufficient
to enable the Company to make any payments in respect of the Notes when required
or that any of such actions would be permitted by the terms of the Indenture or
the debt instruments of Panavision then in effect.

     The Company derives a significant amount of its consolidated revenues and
cash flows from camera and lighting rental activities in North America. The
Writers Guild of America ("WGA") and the Screen Actors Guild ("SAG") are
currently in negotiation with the major motion picture studios for the renewal
of their respective collective bargaining agreements, which expire in May and
June, 2001, respectively. In the event that either the WGA or SAG approves a
labor disruption, production activities in North America could be significantly
reduced. While the Company has developed certain contingency plans in the event
of a labor disruption (including the curtailment of discretionary spending and
other cost reductions), the extended duration of such a disruption could have an
adverse effect on the Company's operating results and cash flow.

     Panavision is a holding company whose only material asset is the ownership
interest in its subsidiaries. Panavision's principal business operations are
conducted by its subsidiaries. Accordingly, Panavision's source of cash to pay
its obligations is expected to be distributions with respect to its ownership
interests in its subsidiaries. There can be no assurance that Panavision's
subsidiaries will generate sufficient cash flow to pay dividends or distribute
funds to Panavision or that applicable state law and contractual restrictions,
including negative covenants contained in the debt instruments of such
subsidiaries, will permit such dividends or distributions.

SEASONALITY

     The Company's revenue and net income are subject to seasonal fluctuations.
In North America, episodic television programs cease filming in the second
quarter for several months, and typically resume production in August. Feature
film and commercial production activity typically reaches its peak in the third
and fourth quarters.

IMPACT OF INFLATION

     The Company's results of operations and financial condition are presented
based upon historical cost. While it is difficult to measure accurately the
impact of inflation due to the imprecise nature of the estimates required, the
Company believes that the effects of inflation, if any, on its results of
operations and financial condition have been minor.

MARKET RISK

     Panavision is exposed to market risk from changes in foreign currency
exchange rates and interest rates, which could impact its business, results of
operations and financial condition. The Company manages its exposure to these
market risks through its regular operating and financing activities.

     As of December 31, 2000 and 1999, Panavision's primary net foreign currency
market exposures include the Euro, British pound, French franc, Canadian dollar,
Australian dollar and the New Zealand dollar. At the present time, the Company
does not generally hedge against foreign currency fluctuation. Management does
not foresee nor expect any significant changes in foreign currency exposure in
the near future.



                                       18
<PAGE>


     As of December 31, 2000 and 1999, a 10% appreciation in foreign currency
exchange rates from the prevailing market rates would increase the related net
unrealized gain by $2.7 million and $2.5 million, respectively. Conversely, a
10% depreciation in these currencies from the prevailing market rates would
decrease the related net unrealized gain by $3.0 million and $2.8 million, as of
December 31, 2000 and 1999, respectively.

     The Company is exposed to changes in interest rates on its variable rate
debt. A hypothetical 10% increase in the interest rates applicable to 2000 and
1999 would have resulted in an increase to interest expense of approximately
$3.1 million and $2.6 million, respectively. Conversely, a hypothetical 10%
decrease in the interest rates applicable to 2000 and 1999 would have decreased
interest expense by approximately $3.1 million and $2.6 million, respectively.
At December 31, 2000, the Company believes that the carrying value of its
amounts payable under the Credit Agreement approximate fair value based upon
current yields for debt issues of similar quality and terms.

     The fair value of Panavision's fixed rate long-term debt is sensitive to
changes in interest rates. Based upon a hypothetical 10% increase in the
interest rate and assuming all other conditions affecting market risk remain
constant, the market value of the Company's fixed rate debt would be impacted by
a decrease of approximately $7.9 million and $8.8 million at December 31, 2000
and 1999, respectively. Conversely, a hypothetical 10% decrease in the interest
rate and assuming all other conditions affecting market risk remain constant,
would result in an increase in market value of approximately $8.3 million and
$9.3 million over the same period. Management does not foresee nor expect any
significant changes in its exposure to interest rate fluctuations or in how such
exposure is managed in the future.

     Panavision manages its fixed and floating rate debt with the objective of
achieving a mix that management believes is appropriate. To manage this mix in a
cost-effective manner, the Company, from time to time, has entered into interest
rate swap agreements, in which it agrees to exchange various combinations of
fixed and/or variable interest rates based upon agreed upon notional amounts.
Panavision had no interest rate swap agreements in effect at December 31, 2000.
Management does not foresee nor expect any significant changes in its exposure
to interest rate fluctuations or in how such exposure is managed.

FORWARD-LOOKING STATEMENTS

     This annual report on Form 10-K for the year ended December 31, 2000, as
well as certain of the Company's other public documents and statements and oral
statements, contain forward-looking statements that reflect management's current
assumptions and estimates of future performance and economic conditions. Such
statements are made in reliance upon safe harbor provisions of Private
Securities Litigation Reform Act of 1995. The Company cautions investors that
any forward-looking statements are subject to risks and uncertainties that may
cause actual results and future trends to differ materially from those
projected, stated, or implied by the forward-looking statements.

     In addition to factors described in the Company's Securities and Exchange
Commission filings and others, the following factors could cause the Company's
actual results to differ materially from those expressed in any forward-looking
statements made by the Company: (i) a significant reduction in the number of
feature film, commercial and series television productions; (ii) competitive
pressures arising from changes in technology, customer requirements and industry
standards; (iii) an increase in expenses related to new product initiatives and
product development efforts; (iv) unfavorable foreign currency fluctuations; and
(v) significant increases in interest rates. The Company assumes no
responsibility to update the forward-looking statements contained in this
filing.

     Panavision Inc. is a leading designer and manufacturer of high-precision
camera systems, comprising cameras, lenses and accessories for the motion
picture and television industries. Panavision systems are rented through its
domestic and international owned-and-operated facilities and agent network.



                                       19
<PAGE>


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

     An index to financial statements and required financial statement schedules
is set forth in Item 14(a).

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

     None.

                                    PART III

     The information required by Items 10, 11, 12 and 13 are included in the
Company's 2001 definitive proxy statement under the captions "Directors of the
Company," "Executive Compensation," "Security Ownership of Certain Beneficial
Holders," and "Certain Relationships and Related Transactions." Such information
is incorporated herein by reference, pursuant to General Instruction G (3).








                                       20
<PAGE>

                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a)(1)&(2)   The consolidated financial statements and consolidated financial
             statement schedule filed as part of this Annual Report on Form 10-K
             can be found beginning on page F-1.

(a)(3)       See below

(b)          Reports on Form 8-K

             During the fourth quarter of 2000, the Company did not file any
             Current Reports on Form 8-K.

(c)          Exhibits

3.           CERTIFICATE OF INCORPORATION AND BY-LAWS

3.1          Restated Certificate of Incorporation of the Company (incorporated
             herein by reference to the identically numbered exhibit from the
             Company's Current Report on Form 10-Q for the quarter ended March
             31, 1999 and filed with the Securities and Exchange Commission on
             May 13, 1999).

3.2          Restated By-Laws of the Company (incorporated herein by reference
             to the identically numbered exhibit from the Company's Current
             Report on Form 10-Q for the quarter ended March 31, 1999 and filed
             with the Securities and Exchange Commission on May 13, 1999).

             INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING
             INDENTURES.

4.1          Indenture, dated as of February 11, 1998, between PX Escrow and The
             Bank of New York, as Trustee, relating to the Company's 95/8%
             Senior Subordinated Discount Notes Due 2006 (the "Indenture").
             Incorporated herein by reference to the identically numbered
             exhibit to the Company's Registration Statement on Form S-1,
             Registration No. 333-59363 filed with the Securities and Exchange
             Commission on October 8, 1998.

4.2          First Supplemental Indenture dated June 4, 1998, among PX Escrow,
             the Company and the Trustee, amending the Indenture (incorporated
             herein by reference to the identically numbered exhibit to the
             Company's Registration Statement on Form S-1, Registration No.
             333-59363 filed with the Securities and Exchange Commission on
             October 8, 1998).


4.3          Credit Agreement, dated June 4, 1998, among Panavision Inc., the
             several lenders named therein, Chase Securities Inc., as Advisor
             and Arranger, and The Chase Manhattan Bank, as Administrative Agent
             (incorporated herein by reference to the identically numbered
             exhibit from the Company's Current Report on Form 8-K dated June 4,
             1998 and filed with the Securities and Exchange Commission on June
             19, 1998).

4.4          Assumption Agreement, dated as of June 4, 1998, between PX Escrow
             Corporation and Panavision Inc. (incorporated herein by reference
             to the identically numbered exhibit from the Company's Current
             Report on Form 8-K dated June 4, 1998 and filed with the Securities
             and Exchange Commission on June 19, 1998).

4.5          Registration Rights Agreement, dated as of June 5, 1998, between
             Panavision Inc. and PX Holding Corporation (incorporated herein by
             reference to the identically numbered exhibit from the Company's
             Annual Report on Form 10-K for the year ended December 31, 1998).

4.6          First Amendment, dated as of September 30, 1998, to the Credit
             Agreement among Panavision Inc., the several lenders named therein,
             Chase Securities Inc., as Advisor and Arranger, and The Chase
             Manhattan Bank, as Administrative Agent (incorporated herein by
             reference to the identically numbered exhibit from the Company's
             Annual Report on Form 10-K for the year ended December 31, 1998).

4.7          Second Amendment, dated as of June 30, 1999, to the Credit
             Agreement among Panavision Inc., the several lenders named therein,
             Chase Securities Inc., as Advisor and Arranger, and The Chase
             Manhattan Bank, as Administrative Agent (incorporated herein by
             reference to the identically numbered exhibit to the Company's
             Annual Report on Form 10-K for the year ended December 31, 1999).



                                       21
<PAGE>


EXHIBIT
NUMBER       DESCRIPTION
-------      -----------
10.          MATERIAL CONTRACTS.

10.1         Panavision Inc. 1999 Stock Option Plan (incorporated herein be
             reference from Annex A of the Company's 1999 Definitive Proxy
             Statement dated March 31, 1999).

10.2         Panavision Inc. 1999 Executive Incentive Compensation Plan
             (incorporated herein by reference from the Company's 1999
             Definitive Proxy Statement dated March 31, 1999).

10.3         Employment Agreement, dated as of January 1, 1999, between
             Panavision Inc. and John S. Farrand (incorporated herein by
             reference to the identically numbered exhibit from the Company's
             Annual Report on Form 10-K for the year ended December 31, 1998).

10.4         Lease, dated June 13, 1995, between the Company and Trizec Warner
             Inc. (incorporated herein by reference to the identically numbered
             exhibit to the Company's Registration Statement on Form S-1,
             Registration No. 333-12235).

10.7         Agreement, dated May 18, 1997, among Visual Action Holdings plc,
             Panavision Europe Limited and the Company (incorporated herein by
             reference to Exhibit 2.1 to the Company's Current Report on Form
             8-K/A Amendment No. 1 to Form 8-K dated June 5, 1997).

10.8         Agreement, dated May 18, 1997, between Visual Action Holdings plc
             and the Company (incorporated herein by reference to Exhibit 2.2 to
             the Company's Current Report on Form 8-K/A Amendment No. 1 to Form
             8-K dated June 5, 1997).

10.9         Stock Purchase Agreement, dated May 18, 1997, among Visual Action
             Holdings, Inc., Visual Action Holdings plc and the Company
             (incorporated herein by reference to Exhibit 2.3 to the Company's
             Current Report on Form 8-K/A Amendment No. 1 to Form 8-K dated June
             5, 1997).

10.10        Credit Agreement, dated June 5, 1997, among Panavision
             International, L.P., the subsidiary guarantors and the lenders
             listed therein, and The Chase Manhattan Bank, as Administrative
             Agent (incorporated herein by reference to Exhibit 10.1 to the
             Company's Quarterly Report on Form 10-Q for the quarter ended June
             30, 1997).

10.11        Agreement of Recapitalization and Merger, dated as of December 18,
             1997, by and among PX Holding Corporation, PX Merger Corporation
             and the Company (incorporated herein by reference to Exhibit 10.1
             to the Company's Current Report on Form 8-K dated December 18,
             1997).

10.12        Voting and Stockholders Agreement, dated as of December 18, 1997,
             by and among Warburg Pincus Capital Company, L.P., the Company and
             Mafco Holdings Inc. (incorporated by reference to Exhibit 10.2 to
             the Company's Current Report of Form 8-K dated December 18, 1997).

10.13        Registration Agreement dated as of February 11, 1998 by and among
             PX Escrow and Credit Suisse First Boston Corporation and Schroder &
             Co. Inc. (incorporated herein by reference to the identically
             numbered exhibit to the Company's Registration Statement on Form
             S-1, Registration No. 333-59363, filed with the Securities and
             Exchange Commission on October 8, 1998).

10.14        Amended and Restated Voting and Stockholders Agreement dated as of
             April 16, 1998, by and among Warburg Pincus Capital Company, L.P.,
             Panavision Inc., and Mafco Holdings Inc. (incorporated herein by
             reference from the Company's Definitive Proxy Statement filed with
             the Securities and Exchange Commission on May 6, 1998).

10.15        Stock Purchase Agreement, dated as of February 1, 1999, between PX
             Holding Corporation and Warburg, Pincus Capital Company, L.P.
             (incorporated herein by reference to the identically numbered
             exhibit from the Company's Annual Report on Form 10-K for the year
             ended December 31, 1998).

10.16        Tax Sharing Agreement, dated as of February 1, 1999, between Mafco
             Holdings Inc. and Panavision Inc. (incorporated herein by reference
             to the identically numbered exhibit from the Company's Annual
             Report on Form 10-K for the year ended December 31, 1998).

10.17        Stock and Warrant Purchase Agreement dated July 26, 2000 by and
             between Sony Electronics Inc. and Panavision Inc. (incorporated
             herein by reference to the identically numbered exhibit from the
             Company's Quarterly Report on Form 10-Q for the quarter ended June
             30, 2000).



                                       22
<PAGE>


EXHIBIT
NUMBER       DESCRIPTION
-------      -----------
10.18        Warrant No. W-1, dated July 26, 2000, Warrant for Purchase of
             Shares of Common Stock from Panavision Inc. by Sony Electronics
             Inc. (incorporated herein by reference to the identically numbered
             exhibit from the Company's Quarterly Report on Form 10-Q for the
             quarter ended June 30, 2000).

10.19        Panavision Inc. Stockholders Agreement dated July 26, 2000 by and
             among Panavision Inc. and Sony Electronics Inc. (incorporated
             herein by reference to the identically numbered exhibit from the
             Company's Quarterly Report on Form 10-Q for the quarter ended June
             30, 2000).

10.20        Registration Rights Agreement dated July 26, 2000 by and between
             Panavision Inc. and Sony Electronics Inc. (incorporated herein by
             reference to the identically numbered exhibit from the Company's
             Quarterly Report on Form 10-Q for the quarter ended June 30, 2000).

21.          SUBSIDIARIES.

21.1         Subsidiaries of the Company.

23.          CONSENTS

23.1         Consent of Ernst & Young LLP

24.          POWERS OF ATTORNEY.

24.1         Power of Attorney executed by Ronald O. Perelman.

24.2         Power of Attorney executed by Martin D. Payson.

24.3         Power of Attorney executed by Edward Grebow.

24.4         Power of Attorney executed by James R. Maher.

24.5         Power of Attorney executed by John S. Farrand.

24.6         Power of Attorney executed by Kenneth Ziffren.

24.7         Power of Attorney executed by Donald G. Drapkin.

24.8         Power of Attorney executed by Philip E. Beekman.

24.9         Power of Attorney executed by William C. Scott.

99.          MISCELLANEOUS.

99.1         Press Release of Panavision Inc. dated June 4, 1998 (incorporated
             herein by reference to the identically numbered exhibit from the
             Company's Current Report on Form 8-K dated June 4, 1998 and filed
             with the Securities and Exchange Commission on June 19, 1998).



                                       23
<PAGE>


                                   SIGNATURES

     PURSUANT TO THE REQUIREMENTS OF SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON
ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED.

                                      Panavision Inc.

Date:    March 28, 2001               By: /S/        JOHN S. FARRAND
                                          --------------------------------------
                                                     John S. Farrand
                                           President and Chief Executive Officer
                                                       and Director

     PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THIS
REPORT HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS ON BEHALF OF THE
REGISTRANT AND IN THE CAPACITIES AND ON THE DATES INDICATED.

       SIGNATURE                        TITLE                          DATE
       ---------                        -----                          ----
           *                Chairman of the Board and Director    March 28, 2001
--------------------------
    Ronald O. Perelman

/S/  SCOTT L. SEYBOLD       Executive Vice President and          March 28, 2001
--------------------------  Chief Financial Officer
     Scott L. Seybold

           *                Director                              March 28, 2001
--------------------------
     Martin D. Payson

           *                Director                              March 28, 2001
--------------------------
    Donald G. Drapkin

           *                Director                              March 28, 2001
--------------------------
     James R. Maher

           *                Director                              March 28, 2001
--------------------------
     Edward Grebow

           *                Director                              March 28, 2001
--------------------------
    Kenneth Ziffren

           *                Director                              March 28, 2001
--------------------------
   Philip E. Beekman

           *                Director                              March 28, 2001
--------------------------
   William C. Scott

         *Scott L. Seybold, by signing his name hereto, does hereby execute this
Form 10-K on behalf of the directors of the Registrant indicated above by
asterisks, pursuant to powers of attorney duly executed by such directors and
filed as exhibits to the Form 10-K.

                                          By: /S/      SCOTT L. SEYBOLD
                                              ----------------------------------
                                                       Scott L. Seybold
                                                       Attorney-in-fact



                                       24
<PAGE>

                          INDEX TO FINANCIAL STATEMENTS
                        AND FINANCIAL STATEMENT SCHEDULE

<TABLE>
<CAPTION>
                                                                                                              PAGE
                                                                                                              ----
<S>                                                                                                           <C>
Report of Ernst & Young LLP, Independent Auditors..............................................................F-2

Consolidated Statements of Operations -Years Ended December 31, 2000, 1999 and 1998............................F-3

Consolidated Balance Sheets-December 31, 2000 and 1999.........................................................F-4

Consolidated Statements of Stockholders' Equity/(Deficiency)--Years Ended December 31, 2000, 1999 and 1998.....F-5

Consolidated Statements of Cash Flows--Years Ended December 31, 2000, 1999 and 1998............................F-6

Notes to Consolidated Financial Statements.....................................................................F-7

Financial Statement Schedule:

         Schedule II--Valuation and Qualifying Accounts and Reserves...........................................S-1
</TABLE>

         All other schedules are omitted because they are not required by the
regulations or related instructions or are not applicable.



                                      F-1

<PAGE>


                REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS

The Board of Directors and Stockholders
Panavision Inc.

We have audited the accompanying consolidated balance sheets of Panavision Inc.
as of December 31, 2000 and 1999, and the related consolidated statements of
operations, stockholders' equity/(deficiency), and cash flows for each of the
three years in the period ended December 31, 2000. Our audits also included the
financial statement schedule listed in the Index at Item 14(a). These financial
statements and schedule are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
schedule based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Panavision Inc. at
December 31, 2000 and 1999, and the consolidated results of its operations and
its cash flows for each of the three years in the period ended December 31,
2000, in conformity with accounting principles generally accepted in the United
States. Also, in our opinion, the related financial statement schedule, when
considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.


                                                               ERNST & YOUNG LLP

Los Angeles, California
February 14, 2001



                                      F-2

<PAGE>


                                 Panavision Inc.

                      Consolidated Statements of Operations
                    (In thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                                        YEAR ENDED DECEMBER 31,
                                                              ------------------------------------------
                                                                 2000            1999            1998
                                                              ----------      ----------      ----------
<S>                                                           <C>             <C>             <C>
Camera rental..............................................   $ 130,047       $  130,808      $ 130,019
Lighting rental............................................      40,289           36,219         27,270
Sales and other............................................      34,292           35,724         35,597
                                                              ----------      ----------      ----------
Total rental revenue and sales.............................     204,628          202,751        192,886
Cost of camera rental......................................      61,119           63,459         62,128
Cost of lighting rental....................................      29,962           26,642         21,505
Cost of sales and other....................................      19,214           20,507         21,435
                                                              ----------      ----------      ----------
Gross margin...............................................      94,333           92,143         87,818
Selling, general and administrative expenses...............      57,376           59,428         54,405
Research and development expenses..........................       6,163            6,103          4,539
Charges in connection with the Panavision Recapitalization
   (see Note 2)............................................           -                -         58,726
                                                              ----------      ----------      ----------
Operating income (loss)....................................      30,794           26,612        (29,852)

Interest income............................................         359              382          3,234
Interest expense...........................................     (48,614)         (42,667)       (31,550)
Foreign exchange gain (loss)...............................      (2,195)            (782)           439
Other, net.................................................         892            2,217          2,930
                                                              ----------      ----------      ----------
Loss before income taxes...................................     (18,764)         (14,238)       (54,799)


Income tax provision.......................................      (4,881)          (1,800)          (322)
                                                              ----------      ----------      ----------
Net loss...................................................   $ (23,645)        $(16,038)     $ (55,121)
                                                              ==========      ==========      ==========
Loss per share - Basic and Diluted.........................   $   (2.83)        $  (1.99)     $   (4.35)
                                                              ==========      ==========      ==========

Shares used in computation - Basic and Diluted.............       8,366            8,056         12,673
</TABLE>


                             See accompanying notes.


                                       F-3


<PAGE>

                                 Panavision Inc.

                           Consolidated Balance Sheets
                      (In thousands, except par value data)

<TABLE>
<CAPTION>
                                                                                     DECEMBER 31,
                                                                               ------------------------
                                                                                  2000          1999
                                                                               ----------    ----------
<S>                                                                            <C>            <C>
ASSETS
Current assets:
   Cash and cash equivalents...............................................    $   4,981      $   5,417
   Accounts receivable (net of allowance of $1,907 in 2000
       and $2,368 in 1999).................................................       32,330         30,683
   Inventories.............................................................       10,160         10,366
   Prepaid expenses........................................................        2,632          2,854
   Other current assets....................................................        1,106            983
                                                                               ----------    ----------
Total current assets.......................................................       51,209         50,303

Property, plant and equipment, net.........................................      204,194        212,748
Other assets...............................................................       29,309         28,507
                                                                               ----------    ----------
Total assets...............................................................    $ 284,712      $ 291,558
                                                                               ==========    ==========

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
   Accounts payable........................................................    $   7,503      $   7,991
   Accrued liabilities.....................................................       24,930         23,504
   Current maturities of long-term debt....................................       17,700          9,750
                                                                               ----------    ----------
Total current liabilities..................................................       50,133         41,245

Long-term debt.............................................................      477,425        473,429
Deferred tax liabilities...................................................        4,923          4,878
Other liabilities..........................................................        2,533          3,246

Commitments and contingencies

Stockholders' deficiency:
   Preferred stock, $0.01 par value; 2,000 shares authorized;
       no shares issued and outstanding....................................            -              -
   Common stock, $0.01 par value; 50,000 shares authorized;
       8,770 shares issued and outstanding at December 31, 2000 and 8,056
       shares issued and outstanding at December 31, 1999..................           88             81
   Additional paid-in capital..............................................      177,887        168,032
   Accumulated deficit.....................................................     (418,947)      (395,302)
   Accumulated other comprehensive loss....................................       (9,330)        (4,051)
                                                                               ----------    ----------
     Total stockholders' deficiency........................................     (250,302)      (231,240)
                                                                               ----------    ----------
Total liabilities and stockholders' deficiency.............................    $ 284,712      $ 291,558
                                                                               ==========    ==========
</TABLE>


                             See accompanying notes.


                                      F-4

<PAGE>


                                 Panavision Inc.

            Consolidated Statements of Stockholders' Equity/(Deficiency)
                                 (In thousands)

<TABLE>
<CAPTION>
                                           Common Stock
                                     ----------------------                   Retained      Accumulated
                                     Shares Issued            Additional     Earnings/         Other     Stockholders'
                                          and                   Paid-in     (Accumulated   Comprehensive    Equity/
                                      Outstanding    Amount     Capital       Deficit)         Loss       (Deficiency)
                                     ----------------------------------------------------------------------------------
<S>                                    <C>        <C>       <C>           <C>             <C>          <C>
Balance at January 1, 1998.........       18,929     $   189   $  77,053     $   34,463      $  (2,261)   $  109,444
   Comprehensive income:
     Net loss......................            -           -           -        (55,121)             -       (55,121)
     Foreign currency translation
       adjustment..................            -           -           -              -           (353)         (353)
                                                                                                          -----------
   Comprehensive loss..............                                                                          (55,474)
                                                                                                          ===========
   Contribution from Mafco.........        5,784          58     154,319              -              -       154,377
   Contribution from Warburg.......            -           -       3,041              -              -         3,041
   Purchase of shares and
     retirement of options.........      (16,657)       (166)    (66,381)      (358,606)             -      (425,153)
                                     ----------------------------------------------------------------------------------
Balance at December 31, 1998.......        8,056          81     168,032       (379,264)        (2,614)     (213,765)
   Comprehensive loss:
     Net loss......................            -           -           -        (16,038)             -       (16,038)
     Foreign currency translation
      adjustment...................            -           -           -              -         (1,437)       (1,437)
   Comprehensive loss..............                                                                          (17,475)
                                     ----------------------------------------------------------------------------------
   Balance at December 31, 1999....        8,056          81     168,032       (395,302)        (4,051)     (231,240)
   Comprehensive loss:
     Net loss......................            -           -           -        (23,645)             -       (23,645)
     Foreign currency translation
       adjustment..................            -           -           -              -         (5,279)       (5,279)
                                                                                                          -----------
   Comprehensive loss..............                                                                          (28,924)
                                                                                                          ===========
   Stock option compensation.......            -           -         117              -              -           117
   Net proceeds from the issuance
     shares........................          714           7       9,738              -              -         9,745
                                     ----------------------------------------------------------------------------------
Balance at December 31, 2000.......        8,770     $    88   $ 177,887     $ (418,947)     $  (9,330)   $ (250,302)
                                     ==================================================================================
</TABLE>




                             See accompanying notes.



                                      F-5
<PAGE>



                                 Panavision Inc.

                      Consolidated Statements of Cash Flows
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                              YEAR ENDED DECEMBER 31,
                                                                     ------------------------------------------
OPERATING ACTIVITIES                                                    2000            1999            1998
                                                                     -----------    -----------      ----------
<S>                                                                  <C>            <C>              <C>
Net loss..........................................................   $ (23,645)     $  (16,038)      $ (55,121)
Adjustments to derive net cash provided by operating activities:
     Depreciation and amortization................................      37,926          36,940          33,161
     Deferred income taxes........................................           -               -            (903)
     Amortization of discount on subordinated notes...............      17,659          16,074          13,105
     Charges in connection with the Panavision Recapitalization...           -               -          58,726
     Gain on sale of property and equipment.......................      (1,196)         (2,181)         (2,526)
     Stock option compensation expense............................         117               -               -
     Changes in operating assets and liabilities:
       Accounts receivable........................................      (1,647)         (1,967)         (3,071)
       Inventories................................................         206            (718)         (1,108)
       Prepaid expenses and other current assets..................          99            (280)          2,212
       Accounts payable...........................................        (488)            521          (2,349)
       Accrued liabilities........................................       1,426           2,710          (3,179)
     Other, net...................................................      (5,705)         (5,862)          1,758
                                                                     -----------    -----------      ----------
Net cash provided by operating activities.........................      24,752          29,199          40,705

INVESTING ACTIVITIES
Capital expenditures..............................................     (30,746)        (35,656)        (49,992)
Proceeds from dispositions of fixed assets........................       1,768           3,324           6,379
                                                                     -----------    -----------      ----------
Net cash used in investing activities.............................     (28,978)        (32,332)        (43,613)

FINANCING ACTIVITIES
Borrowings under notes payable and credit agreement...............      30,500          11,500         463,248
Repayments of notes payable and credit agreement..................     (36,212)        (12,814)       (133,141)
Issuance of shares to Sony (net of transaction costs).............       9,745               -               -
Contribution from Mafco...........................................           -               -         154,377
Contribution from Warburg.........................................           -               -           3,041
Redemption and retirement of stock and stock options..............           -               -        (481,544)
Deferred financing costs..........................................           -               -         (11,162)
Notes receivable from officers and key employees..................           -               -           7,115
                                                                     -----------    -----------      ----------
Net cash provided by (used in) financing activities...............       4,033          (1,314)          1,934
Effect of exchange rate changes on cash...........................        (243)             92            (274)
                                                                     -----------    -----------      ----------
Net decrease in cash and cash equivalents.........................        (436)         (4,355)         (1,248)
Cash and cash equivalents at beginning of period..................       5,417           9,772          11,020
                                                                     -----------    -----------      ----------
Cash and cash equivalents at end of period........................   $   4,981      $    5,417           9,772
                                                                     ===========    ===========      ==========
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid during the period...................................   $  30,867      $   26,067       $  17,042
Income taxes paid during the period...............................   $   3,006      $    2,702       $   2,369

</TABLE>


                             See accompanying notes



                                      F-6
<PAGE>


                                 Panavision Inc.

                   Notes to Consolidated Financial Statements
                                December 31, 2000

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Panavision Inc. ("Panavision" or the "Company"), a majority owned subsidiary of
Mafco Holdings Inc. ("Mafco" or "Parent"), commenced operations effective June
1, 1991. All of the Company's operations are conducted through its subsidiaries
and through Panavision International L.P. ("PILP"), a Delaware limited
partnership, and PILP's subsidiaries.

The consolidated financial statements include the accounts of Panavision, PILP
and their majority-owned subsidiaries. All significant intercompany amounts and
transactions have been eliminated.

Certain amounts in previously issued financial statements have been reclassified
to conform to the 2000 presentation.

Panavision is a leading designer, manufacturer and supplier of high-precision
camera systems, comprising cameras, lenses and accessories, for the motion
picture and television industries. The Company rents its products through its
owned-and-operated facilities in North America, Europe, and the Asia Pacific
region, as well as through a worldwide agent network. In addition to
manufacturing and renting camera systems, the Company also rents lighting,
lighting grip, power distribution, generation and related transportation
equipment and sells lighting filters and other color correction and diffusion
filters.

TRANSLATION OF FOREIGN CURRENCIES

The functional currency for the Company's foreign subsidiaries is the local
currency. All assets and liabilities denominated in foreign functional
currencies are translated into U.S. dollars at rates of exchange in effect at
the balance sheet date. Statement of operations items are translated at the
average rate of exchange prevailing during the period. Translation gains and
losses are recorded as a component of accumulated other comprehensive loss in
the Company's statement of stockholders' equity/(deficiency). Gains and losses
resulting from transactions in other than functional currencies are reflected in
operating results.

CASH EQUIVALENTS

The Company considers all highly liquid debt instruments purchased with original
maturity dates of three months or less and investments in money market funds to
be cash equivalents. The carrying amount reported in the balance sheet for cash
and cash equivalents approximates fair value.

INVENTORIES

Inventories are valued at the lower of cost or market value and are determined
principally under the first-in, first-out method.



                                      F-7
<PAGE>


                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment, including rental equipment, are stated at cost.
Maintenance and repairs are charged to expense as incurred. Additions,
improvements and replacements that extend asset life are capitalized.

Depreciation is provided on a straight-line basis over the estimated useful
lives of the assets. Leasehold improvements are amortized over the shorter of
the useful life of the related asset or the remaining lease term. Cost and
accumulated depreciation applicable to assets retired or otherwise disposed of
are eliminated from the accounts, and any gain or loss on such disposition is
reflected in operating results.

Depreciation is provided principally over the following useful lives:

      Buildings and improvements.........................   10-30 years

      Rental assets......................................    3-20 years

      Machinery and equipment............................    3-10 years

      Furniture and fixtures.............................    5-10 years


Depreciation expense amounted to $34.2 million, $34.0 million and $32.8 million
for 2000, 1999, and 1998, respectively.

GOODWILL AND OTHER INTANGIBLES


Goodwill recognized in business combinations accounted for as purchases is
included in the balance sheet as a component of other assets and is being
amortized over periods ranging from 4 to 30 years. As of December 31, 2000 and
1999 goodwill was $10.5 million and $12.8 million net of accumulated
amortization of $2.6 million and $1.4 million, respectively. Goodwill
amortization expense amounted to $1.2 million, $0.9 million, and $0.3 million
for 2000, 1999 and 1998, respectively. Goodwill is primarily related to the
acquisition of the Film Services Group which closed on June 5, 1997 and the
acquisition of lighting assets in Australia during 1999.


Other intangibles such as patents and trademarks are included in the balance
sheet as a component of other assets and are being amortized on a straight-line
basis over their estimated useful lives ranging from 5 to 12 years. Amortization
expense amounted to $0.3 million, $0.2 million and $0.1 million for 2000, 1999
and 1998, respectively. Accumulated amortization was $6.1 million and $5.8
million at December 31, 2000 and 1999, respectively.



                                      F-8
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ACCOUNTING FOR LONG-LIVED ASSETS

The Company assesses on an ongoing basis the recoverability of long-lived
tangible and intangible assets, including goodwill, based on estimates of future
undiscounted cash flows compared to net book value. If the future undiscounted
cash flow estimates were less than net book value, net book value would then be
reduced to estimated fair value, which generally approximates discounted cash
flows. The Company also evaluates the amortization periods of assets to
determine whether events or circumstances warrant revised estimates of useful
lives.

ACCOUNTING FOR THE COSTS OF COMPUTER SOFTWARE

The Company capitalizes certain costs incurred in connection with developing or
obtaining internal use software.

INCOME TAXES


Income taxes are accounted for using the liability method in accordance with
Statement of Financial Accounting Standard No. 109 "Accounting for Income Taxes"
("SFAS 109") (see Note 6). Under this method, deferred tax liabilities and
assets are recognized for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of assets and
liabilities. As of December 31, 2000, the Company's accumulated foreign earnings
were approximately $14,392,000. The Company has provided deferred income taxes,
including withholding taxes, on undistributed Canadian earnings totaling
approximately $6,195,000. All other foreign earnings are permanently reinvested.


CONCENTRATION OF BUSINESS AND CREDIT RISK

Most of the Company's customers are in the entertainment industry. The Company
performs ongoing credit evaluations of its customers and maintains allowances
for potential credit losses. The Company does not generally require collateral.
Actual losses and allowances have been within management's expectations.

The Company derives a significant amount of its consolidated revenues and cash
flows from camera and lighting rental activities in North America. The Writers
Guild of America ("WGA") and the Screen Actors Guild ("SAG") are currently in
negotiation with the major motion picture studios for the renewal of their
respective collective bargaining agreements, which expire in May and June, 2001,
respectively. In the event that either the WGA or SAG approves a labor
disruption, production activities in North America could be significantly
reduced. While the Company has developed certain contingency plans in the event
of a labor disruption (including the curtailment of discretionary spending and
other cost reductions), the extended duration of such a disruption could have a
significant effect on the Company's operating results and cash flow.



                                      F-9
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

REVENUE RECOGNITION

Rental revenue is recognized over the related equipment rental period. Sales
revenue is recognized upon shipment. Returns and allowances, which have not been
significant, are provided for in the period of sale.

In December 1999, the Securities and Exchange Commission ("SEC") issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements" ("SAB
101"). SAB 101 summarizes certain of the SEC's views in applying accounting
principles generally accepted in the United States to revenue recognition in
financial statements. In June 2000, the SEC issued SAB 101B to defer the
effective date of the implementation of SAB 101 until the fourth quarter of
fiscal 2000. The adoption of SAB 101 did not have a material effect on the
Company's operations or financial position.

FREIGHT COSTS

For the years ended December 31, 2000, 1999, and 1998, freight costs amount to
$2.3 million, $2.0 million, and $2.3 million, respectively, and are included in
selling, general and administrative expenses in the accompanying consolidated
statements of operations.

ADVERTISING COSTS

The Company expenses advertising costs as incurred.

COMPREHENSIVE INCOME (LOSS)

As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130"). SFAS 130
established the rules for the reporting and display of comprehensive income and
its components; however, the adoption of SFAS 130 had no impact on the Company's
net loss or stockholders' deficiency. SFAS 130 requires the Company's foreign
currency translation adjustments, which prior to adoption were reported
separately in stockholders' equity/(deficiency), to be included in comprehensive
income. Prior year financial statements have been reclassified to conform to the
requirements of SFAS 130.


For the years ended December 31, 2000, 1999 and 1998, comprehensive loss
amounted to $(28,924,000), $(17,475,000) and $(55,474,000), respectively. The
difference between net loss and comprehensive loss relates to the Company's
change in foreign currency translation adjustments.



                                      F-10
<PAGE>


                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

SEGMENT INFORMATION

On December 31, 1998, the Company adopted Statement of Financial Accounting
Standards No. 131 "Disclosures about Segments of an Enterprise and Related
Information" ("SFAS 131"). This rule establishes revised standards for public
companies relating to the reporting of financial and descriptive information
about their business segments in financial statements. The adoption of SFAS 131
did not have a material effect on the Company's primary financial statements,
but did affect the disclosure of segment information contained in Note 10 of the
Notes to the Consolidated Financial Statements.

ACCOUNTING FOR DERIVATIVE INSTRUMENTS

In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities. SFAS No. 133, as
amended by SFAS 137, is effective for fiscal years beginning after June 15,
2000. SFAS No. 133 requires the Company to recognize all derivatives as either
assets or liabilities and measure those instruments at fair value. It further
provides criteria for derivative instruments to be designated as fair value,
cash flow and foreign currency hedges and establishes respective accounting
standards for reporting changes in the fair value of the derivative instruments.

Upon adoption on January 1, 2001, the Company will be required to adjust hedging
instruments to fair value in the balance sheet and recognize the offsetting
gains or losses as adjustments to net income (loss) or other comprehensive
income (loss), as appropriate. The adoption of SFAS No. 133 will not have a
material impact on the Company's financial position or results of operations.

EARNINGS PER SHARE

Earnings per share is calculated in accordance with Statement of Financial
Accounting Standards No. 128 "Earnings Per Share" ("SFAS 128"). Basic earnings
per share is based upon the weighted-average number of common shares
outstanding. Diluted earnings per share is based upon the weighted-average
number of common shares and dilutive potential common shares outstanding.
Potential common shares include outstanding options under the Company's stock
option plan and warrants outstanding, all of which are included under the
treasury stock method.



                                      F-11
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The following table sets forth the computation for basic and diluted earnings
per share (in thousands, except per share information):

<TABLE>
<CAPTION>
                                                                                 YEAR ENDED DECEMBER 31,
                                                                     ---------------------------------------------
                                                                        2000              1999            1998
                                                                     ----------        ----------      -----------
<S>                                                                  <C>               <C>             <C>
Numerator for basic and diluted  loss per share - net loss.........  $ (23,645)        $ (16,038)      $ (55,121)
Denominator:

     Denominator for basic loss per share-
       weighted-average shares.....................................      8,366             8,056          12,673
     Effect of dilutive securities - stock options and warrants....          -               -               -
                                                                     ----------        ----------      -----------
     Denominator for diluted loss per share -
       adjusted weighted-average shares............................      8,366             8,056          12,673
Basic  loss per share..............................................  $   (2.83)        $   (1.99)      $   (4.35)
                                                                     ==========       ===========      ===========
Diluted loss per share.............................................  $   (2.83)        $   (1.99)      $   (4.35)
                                                                     ==========       ===========      ===========
</TABLE>

For the year ended December 31, 2000 outstanding stock options and warrants to
purchase 1,225,333 and 713,400 shares, respectively, were excluded from the
calculation of diluted loss per share as their effect would have been
antidilutive. For the year ended December 31, 1999, outstanding stock options to
purchase 1,162,000 shares were excluded from the calculation of diluted loss per
share as their effect would have been antidilutive. In connection with the
Panavision Recapitalization, all outstanding stock options were settled for cash
and therefore, there were no outstanding options as of December 31, 1998.
Options outstanding during the period January 1, 1998 to June 4, 1998 are not
included in the 1998 denominator for diluted loss per share, as they would have
been antidilutive.

STOCK-BASED BENEFITS

Statement of Financial Accounting Standards No. 123 "Accounting for Stock-Based
Compensation" ("SFAS 123"), recommends that stock awards granted subsequent to
January 1, 1995 be recognized as compensation expense based on their fair value
at the date of grant. Alternatively, a company may use APB 25 "Accounting for
Stock Issued to Employees," and disclose the pro forma income amount which would
have resulted from recognizing such awards at their fair value. The Company will
continue to account for stock-based compensation expense under APB 25 and make
the required pro forma disclosures for compensation.



                                      F-12
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


In March 2000, the Financial Accounting Standards Board issued Interpretation
No. 44, "Accounting for Certain Transactions Involving Stock Compensation - an
Interpretation of APB 25" ("FIN 44"). FIN 44 clarifies (a) the definition of
employee for purposes of applying APB 25, (b) the criteria for determining
whether a plan qualifies as a noncompensatory plan, (c) the accounting
consequence of various modifications to the terms of a previously fixed stock
option or award, and (d) the accounting for an exchange of stock compensation
awards in a business combination. FIN 44 is effective July 1, 2000, however
certain conclusions in this Interpretation cover specific events that occur
after either December 15, 1998, or January 12, 2000. To the extent that FIN 44
covers events occurring during the period after December 15, 1998, or January
12, 2000, but before the effective date of July 1, 2000, the effects of applying
this Interpretation are recognized on a prospective basis from July 1, 2000. The
adoption of FIN 44 did not have a significant effect on the Company's results of
operations or its financial position.


INVESTMENTS

Investments accounted for under the equity method are included in other assets
in the accompanying consolidated balance sheet. The Company's share of earnings
or losses in its equity investees is included in Other, net in the accompanying
consolidated statements of operations.

USE OF ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from such estimates.

2.       THE PANAVISION RECAPITALIZATION

On June 4, 1998, as contemplated by (i) an Agreement of Recapitalization and
Merger, dated as of December 18, 1997 (the "Recapitalization Agreement"), by and
among PX Holding Corporation ("PX Holding"), PX Merger Corporation (the "Merger
Sub") and the Company, and (ii) an Amended and Restated Voting and Stockholders
Agreement, dated as of April 16, 1998 (the "Stockholders Agreement"), by and
among Warburg Pincus Capital Company, L.P., a Delaware limited partnership
("Warburg"), the Company and Mafco, the Company consummated a merger whereby
Merger Sub was merged with and into the Company (the "Merger"), with the Company
remaining as the surviving corporation.

As a result of the Merger, PX Holding, a wholly owned subsidiary of Mafco, the
sole stockholder of which is Ronald O. Perelman, acquired an approximately 91%
controlling interest in the Company at that time. Other stockholders owned
approximately 9% of Panavision Common Stock at that time.

The Merger was accounted for as a leveraged recapitalization as there was a
significant continuation of stockholder ownership.



                                      F-13
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


3. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following (in thousands):

                                                                DECEMBER 31,
                                                          ----------------------
                                                             2000        1999
                                                          ---------    ---------
     Land..............................................   $      44    $      52
     Buildings and improvements........................      17,206       17,891
     Rental assets.....................................     366,198      353,969
     Machinery and equipment...........................      16,116       15,926
     Furniture and fixtures............................       7,821        7,099
     Other.............................................       2,288        1,559
                                                          ---------    ---------
                                                            409,673      396,496
     Less accumulated depreciation and amortization....     205,479      183,748
                                                          ---------    ---------
                                                          $ 204,194    $ 212,748
                                                          =========    =========

The above amounts include approximately $300,000 of interest costs capitalized
in the year ended December 31, 2000.

4. INVENTORIES

Inventories consist of the following (in thousands):

                                                            DECEMBER 31,
                                                        --------------------
                                                          2000        1999
                                                        --------    --------
         Finished goods...............................  $  2,553    $  4,405
         Work-in-process..............................       108         202
         Component parts..............................     2,146       1,924
         Supplies and other...........................     5,353       3,835
                                                        --------    --------
                                                        $ 10,160    $ 10,366
                                                        ========    ========

5. ACCRUED LIABILITIES

Accrued liabilities consist of the following (in thousands):

                                                          DECEMBER 31,
                                                      --------------------
                                                        2000        1999
                                                      --------    --------
         Interest payable..........................   $  2,518    $  2,243
         Professional fees.........................        778         812
         Taxes other than income taxes.............        845       1,716
         Payroll and related costs.................      7,572       7,154
         Accrued other.............................     13,217      11,579
                                                      --------    --------
                                                      $ 24,930    $ 23,504
                                                      ========    ========




                                      F-14
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


6. INCOME TAXES

As of February 1, 1999, Panavision and its subsidiaries are included in the
consolidated federal income tax return of Mafco and are, therefore, jointly and
severally liable with Mafco for any income tax liabilities of the consolidated
group. Federal income taxes were provided for in the accompanying consolidated
financial statements as if the Company had filed its own income tax returns.

The Company, for federal income tax purposes, is included in the affiliated
group of which Mafco is the common parent, and the Company's federal taxable
income and loss is included in such group's consolidated tax return filed by
Mafco. The Company also may be included in certain state and local tax returns
filed by Mafco or its subsidiaries. As of February 1, 1999, the Company and
certain of its subsidiaries and Mafco entered into a tax sharing agreement (the
"Tax Sharing Agreement"), pursuant to which Mafco has agreed to indemnify the
Company against federal, state or local income tax liabilities of the
consolidated or combined group of which Mafco (or a subsidiary of Mafco other
than the Company or its subsidiaries) is the common parent for taxable periods
beginning on or after February 1, 1999 during which the Company or a subsidiary
of the Company is a member of such group. Pursuant to the Tax Sharing Agreement,
for all taxable periods beginning on or after February 1, 1999, the Company will
pay to Mafco amounts equal to the taxes that the Company would otherwise have to
pay if it were to file separate federal, state or local income tax returns.


Pursuant to the terms of the Tax Sharing Agreement, certain net operating loss
carryforwards may not be available to the Company, should the Company cease
being a member of the Mafco Consolidated Federal income tax return. The Company
has determined that a substantial portion of the net operating losses generated
subsequent to its inclusion in the Mafco affiliated group would not be available
to the Company upon a deconsolidation event, which would occur were 7.3 million
shares of common stock of the Company acquired by M & F Worldwide Corp. pursuant
to the terms of the proposed transaction (see footnote 14).




                                      F-15
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


6. INCOME TAXES (CONTINUED)

The provision for income taxes includes the following (in thousands):

                                                     YEAR ENDED DECEMBER 31,
                                                --------------------------------
                                                  2000       1999        1998
                                                --------   --------    ---------
     Current provision (benefit):

        Federal..............................   $     -     $  (470)    $     -
        State................................       100           -          50
        Foreign..............................     4,736       4,038       1,175
                                                --------   --------    ---------
     Total current provision.................     4,836       3,568       1,225
                                                --------   --------    ---------


     Deferred provision (benefit):

        Federal..............................         -           -      (1,899)
        State................................         -           -      (1,159)
        Foreign..............................        45      (1,768)      2,155
                                                --------   --------    ---------
     Total deferred benefit..................        45      (1,768)       (903)
                                                --------   --------    ---------
                                                $ 4,881     $ 1,800     $   322
                                                ========   ========    =========

For financial statement purposes, loss before income taxes includes the
following components (in thousands):

                                                    YEAR ENDED DECEMBER 31,
                                              ----------------------------------
                                                 2000       1999         1998
                                              ----------  ---------   ----------
     Income (Loss) before income taxes:

        Domestic...........................   $ (23,034)  $ (17,510)  $ (61,244)
        Foreign............................       4,270       3,272       6,445
                                              ----------  ---------   ----------
                                              $ (18,764)  $ (14,238)  $ (54,799)
                                              ==========  =========   ==========


The difference between the provision for income taxes and the amount computed by
applying the Federal statutory rate (35%) to loss before taxes is explained
below (in thousands):

                                                   YEAR ENDED DECEMBER 31,
                                              ---------------------------------
                                                2000        1999        1998
                                              ---------   ---------  ----------
Tax at Federal statutory rate..............   $ (6,567)   $ (5,055)  $ (19,180)
State income tax...........................         65           -          33
Increase  in valuation allowance...........      6,290       3,355      16,389
Non-deductible items ......................        603         343       2,845
Foreign income taxed at varying rates......      4,490       2,398       1,074
Other, net.................................          -         759        (839)
                                              ---------   ---------  ----------
                                              $  4,881    $  1,800   $     322
                                              =========   =========  ==========



                                      F-16
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


6. INCOME TAXES (CONTINUED)

Significant components of the Company's deferred tax assets and liabilities as
of December 31, 2000 and 1999 are as follows (in thousands):

                                                              DECEMBER 31,
                                                          --------------------
                                                            2000        1999
                                                          --------    --------
Deferred tax assets:

   Domestic net operating loss carryforwards............. $ 34,923    $ 29,815
   Tax credit carryforwards (primarily alternative
     minimum tax credits)................................    9,077       9,308
   Expense accruals......................................    5,751       3,934
   Other.................................................    1,650       2,028
                                                          --------    --------
Total deferred tax assets................................   51,401      45,085
Valuation allowance......................................  (30,057)    (23,767)
                                                          --------    --------
Net deferred tax assets..................................   21,344      21,318

Deferred tax liabilities:

   Fixed assets..........................................  (22,340)    (21,019)
   State income taxes....................................     (515)       (624)
   Unremitted foreign earnings...........................   (1,013)     (2,564)
   Other ................................................   (2,399)     (1,989)
                                                          --------    --------
Total deferred tax liabilities...........................  (26,267)    (26,196)
                                                          --------    --------
Net deferred tax liabilities............................. $ (4,923)   $ (4,878)
                                                          ========    ========

Balance Sheet Classifications:
------------------------------
Non-current deferred tax liability....................... $ (4,923)   $ (4,878)
                                                          --------    --------
                                                          $ (4,923)   $ (4,878)
                                                          ========    ========

SFAS 109 provides for the recognition of deferred tax assets if realization of
such assets is more likely than not. Based upon the weight of available
evidence, which includes the Company's recent operating performance and the
reported cumulative net losses in the current and prior year, the Company has
provided a full valuation allowance against its net domestic deferred tax
assets.

The valuation allowance increased by $6,290,000 during the year ended December
31, 2000. The net increase is a result of unbenefitted net operating losses and
tax credits. The valuation allowance increased by $3,355,000 during the year
ended December 31, 1999 and increased by $16,389,000 during the year ended
December 31, 1998.



                                      F-17
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


6. INCOME TAXES (CONTINUED)

As of December 31, 2000, the Company had federal and state net operating loss
carryforwards of approximately $91.4 million and $36.0 million, respectively. In
the event that the Company were deconsolidated from the Mafco affiliated group,
federal and state NOL's of approximately $31.8 million and $17.3 million,
respectively, would not be available for use by the Company. The net operating
loss carryforwards will expire at various dates beginning in 2008 through 2020,
if not utilized.

At December 31, 2000, the Company also had federal alternative minimum tax
credit carryforwards of approximately $5.9 million, which may be used
indefinitely, and foreign tax credit carryforwards of approximately $2.7
million, which will expire from 2001 to 2005, if not utilized.

Utilization of the net operating loss and tax credit carryforwards may be
subject to a substantial annual limitation due to the ownership change
limitations provided by the Internal Revenue Code and similar state provisions.
The annual limitation may result in the expiration of a portion of the net
operating loss and tax credit carryforwards before utilization.

7. LONG-TERM DEBT

     Long-term debt, including current maturities, consists of the following (in
thousands):

                                                              DECEMBER 31,
                                                          ---------------------
                                                             2000       1999
                                                          ---------   ---------
       Credit Agreement:

           Revolving Facility..........................   $  82,300   $  68,500
           Term Facility...............................     215,988     235,500

       9 5/8% Senior Subordinated Discount Notes
           Due 2006....................................     196,837     179,179
                                                          ---------   ---------
  Total long-term debt, including current maturities...   $ 495,125   $ 483,179
                                                          =========   =========

In connection with the Panavision Recapitalization, the Company entered into a
new credit agreement (the "Credit Agreement"). Borrowings under the Credit
Agreement were used to, among other things, repay existing borrowings under the
old credit agreement and finance a portion of the Panavision Recapitalization.

The Credit Agreement is comprised of two facilities, the Term Facility and the
Revolving Facility. The Term Facility has two tranches: the Tranche A Term
Facility is a 6-year facility in an aggregate principal amount equal to $90.0
million and the Tranche B Term Facility is a 7-year facility in an aggregate
principal amount of $150.0 million. The Revolving Facility is a 6-year facility
in an aggregate principal amount of $100.0 million.



                                      F-18
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


7. LONG-TERM DEBT (CONTINUED)

The Tranche A Term Facility and the Tranche B Term Facility are repayable in
quarterly installments.

Borrowings under the Credit Agreement bear interest at a rate per annum equal to
the Alternate Base Rate ("ABR") (as defined in the Credit Agreement) or the
Eurodollar Rate (as defined in the Credit Agreement) plus, in each case, a
margin that will be based on the performance of the Company at agreed upon
levels. The applicable margin at December 31, 2000 on loans under the Revolving
Facility and the Tranche A Term Facility was 3.25% for Eurodollar Loans (as
defined in the Credit Agreement) and 2.25% for ABR Loans (as defined in the
Credit Agreement). The applicable margin at December 31, 2000 on loans under the
Tranche B Term Facility was 3.50% for Eurodollar Loans and 2.50% for ABR Loans.
The Company may select interest periods of one, two, three or six months for
Eurodollar Loans. At any time when the Company is in default in the payment of
any amount of principal due under the Credit Agreement, such amount will bear
interest at 2.00% above the rate otherwise applicable. Overdue interest, fees
and other amounts will bear interest at 2.00% above the rate applicable to ABR
Loans.

The Company's obligations under the Credit Agreement are secured by
substantially all of the Company's assets. The Credit Agreement requires that
the Company meet certain financial tests and other restrictive covenants
including limitations on indebtedness, leverage ratio levels, and interest
coverage ratio levels. As of December 31, 2000, the Company was in compliance
with all financial covenants of the Credit Agreement. The Company's ability to
pay dividends to its stockholders is restricted by this agreement.

In addition to the Credit Agreement, in 1998, the Company assumed the
obligations of PX Escrow Corp. ("PX Escrow"), a wholly owned subsidiary of PX
Holding, under the 9 5/8% Senior Subordinated Discount Notes due 2006 issued by
PX Escrow for gross proceeds of $150.0 million, in an offering which was exempt
from registration under the Securities Act of 1933, as amended.

The 9 5/8% Senior Subordinated Discount Notes, which have a principal amount at
maturity of $217.9 million, were issued at a discount representing a yield to
maturity of 9 5/8%. There are no periodic payments or interest through February
1, 2002. Thereafter, they will bear interest at a rate of 9 5/8% per annum,
payable semi-annually on February 1 and August 1 of each year, commencing August
1, 2002.

On October 8, 1998, the Company filed a registration statement under the
Securities Act of 1933, as amended, related to an offer to exchange (the
"Exchange Offer") the 9 5/8% Senior Subordinated Discount Notes for a like
principal amount of notes with substantially identical terms. The Exchange Offer
was consummated on November 13, 1998.



                                      F-19
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


7. LONG-TERM DEBT (CONTINUED)

During 1998, the Company used the net proceeds from the PX Stock Purchase,
borrowings under the Credit Agreement and the net proceeds from the issuance of
the 9 5/8% Senior Subordinated Discount Notes to retire existing indebtedness,
fund the payment of the cash consideration and the fees and expenses in
connection with the Panavision Recapitalization transaction and to provide
working capital for the Company.

The Company believes the carrying value of its amounts payable under the Credit
Agreement approximate fair value based upon current yields for debt issues of
similar quality and terms. Based upon prevailing market rates in effect at
December 31, 2000, the fair market value of the 9 5/8% Senior Subordinated
Discount Notes would have been approximately $65.4 million.

The following sets forth the aggregate principal maturities of the Company's
debt during the twelve-month periods ending December 31st (in thousands):


         2001............................................    $  17,700
         2002............................................       23,680
         2003............................................       42,815
         2004............................................      184,195
         2005............................................       29,898
         2006............................................      217,903

The aggregate principal amount for 2006 represents the fully accreted value of
the 9 5/8% Senior Subordinated Discount Notes. As of December 31, 2000, the
accreted value of the 9 5/8% Senior Subordinated Discount Notes was $196.8
million.

8. STOCK OPTION PLAN

During 1999, the Board of Directors adopted a stock option plan (the "Plan")
which is open to participation by directors, officers, consultants, and other
key employees of the Company or of its subsidiaries and certain other key
persons. The Plan provides for the issuance of incentive and nonqualified stock
options under the Internal Revenue Code. An aggregate of 1,500,000 shares of
Panavision Common Stock are reserved for issuance under the Plan. The options
are granted for a term of ten years. If an incentive stock option is granted to
an individual owning more than 10% of the total combined voting power of all
stock, the exercise price of the option may not be less than 110% of the fair
market value of the underlying shares on the date of grant and the term of the
option may not exceed five years. The Plan also provides that the aggregate fair
market value (determined as of the time the option is granted) of Panavision
Common Stock with respect to which incentive stock options are exercisable for
the first time by an optionee during any calendar year shall not exceed
$100,000.



                                      F-20
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


8. STOCK OPTION PLAN (CONTINUED)

In connection with the Panavision Recapitalization (see Note 2), the Company
recorded compensation expense in the amount of $48.6 million as of December 31,
1998. The compensation charge resulted from the retirement of options and
purchase of converted stock held by directors, officers and other key management
required upon consummation of the Panavision Recapitalization. Such options and
converted stock were retired for $27.00 per share. As a result, at December 31,
1998, there were no options outstanding or exercisable.

Option information with respect to the Company's stock option plan is as
follows:

<TABLE>
<CAPTION>
                                                                       EXERCISE PRICE
                                                                   ------------------------
                                                                                  WEIGHTED
                                                    SHARES         RANGE         AVG. PRICE
                                                  -----------  ---------------  ------------
<S>                                               <C>             <C>              <C>
    Options Outstanding at December 31, 1998(1)        -             -               -
         Grants................................    1,162,000      $10.00           $10.00
                                                  ------------------------------------------
    Options Outstanding at December 31, 1999...    1,162,000       10.00            10.00
         Options expired ......................                    10.00            10.00
         Grants................................      130,000        7.50            7.50
                                                  ------------------------------------------
    Options Outstanding at December 31, 2000...    1,225,333    $10.00 - $7.50      $9.73
                                                  ==========================================
</TABLE>

The weighted-average remaining contractual life of options outstanding at
December 31, 2000 is 7.19 years.

----------------------
(1) In conjunction with the June 4, 1998 Merger and Panavision Recapitalization
(see Note 2), all outstanding options, which were held by directors, officers
and key employees, were retired for $27.00 per share.

Information regarding stock options exercisable is as follows:

                                                         DECEMBER 31,
                                               -------------------------------
                                                 2000        1999       1998
                                               ---------   ---------  --------
     Options Exercisable:

          Number.............................  1,138,667     155,000         -
          Weighted average exercise price....      $9.90      $10.00         -




                                      F-21
<PAGE>



8. STOCK OPTION PLAN (CONTINUED)

If the Company recognized employee stock option-related compensation expense in
accordance with SFAS 123 and used the Black-Scholes option valuation model for
determining the weighted average fair value of options granted during 2000, its
pro forma net loss and pro forma diluted loss per share would have been
$24,208,000 and $2.89, respectively. The Company's 1999 pro forma net loss and
pro forma diluted loss per share would have been $17,048,000 and $2.12,
respectively. For 1998, the Company's pro forma net loss and pro forma diluted
loss per share would have been $55,526,000 and $4.38, respectively. The pro
forma effect for 1998 is due to the recognition of the unamortized compensation
expense related to the 1996 stock options, which were retired as part of the
Panavision Recapitalization. For purposes of the pro forma expense, the weighted
average fair value of the options is amortized over the vesting period. For
2000, the weighted average fair value of options whose exercise price is less
than the market price of the stock on the date of grant is $4.97. For 2000 and
1999, the weighted average fair value of options granted whose exercise price is
more than the market price of the stock on the grant date is $3.39 and $1.07,
respectively. The fair values are as of the respective grant dates and were
estimated using the following assumptions and the Black-Scholes option valuation
model:

                                                2000       1999       1998
                                              --------   --------   ---------
            Risk-free interest rate........    6.53%      6.05%       N/A
            Expected life..................   5 years    5 years      N/A
            Expected volatility............     0.44       0.38       N/A
            Expected dividend yield........    0.00%      0.00%       N/A

The Black-Scholes option valuation model was developed for use in estimating the
fair value of traded options. The Company's stock options have characteristics
significantly different from those of traded options such as vesting
restrictions and non-transferability of options. In addition, the assumptions
used in option valuation models are subjective, particularly the expected stock
price volatility for the underlying stock. Because changes in these subjective
input assumptions can materially affect the fair value estimate, in management's
opinion, the existing model does not provide a reliable single measure of the
fair value of its employee stock options.

9. EMPLOYEE BENEFIT PLANS

The Company sponsors a defined contribution 401(k) plan covering a majority of
its domestic employees. Eligible employees may contribute from 1% to 16% of
their base compensation. The Company makes matching contributions equal to 75%
of employee before-tax contributions from 1% to 6%. For the years ended December
31, 2000, 1999 and 1998, the Company recorded expense of $893,000, $818,000 and
$843,000, respectively, related to the 401(k) plan.



                                      F-22
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


9. EMPLOYEE BENEFIT PLANS (CONTINUED)

In addition, the Company sponsors a defined contribution retirement plan, which
covers certain foreign employees. Participating employees contribute from 5% to
15% of their base compensation. The Company contributes 13.4% of base
compensation for participating employees regardless of their level of
contribution. For the years ended December 31, 2000, 1999 and 1998, the Company
expensed $1,158,000, $1,099,000 and $1,030,000, respectively, representing the
Company's contributions.

10. GEOGRAPHICAL AND BUSINESS SEGMENT INFORMATION

The Company operates in three major business segments: North America, Europe and
Asia Pacific. These business segments are based upon the manner in which
management of the Company allocates resources and assesses performance of its
owned-and-operated facilities. North America consists of camera rental
facilities in Woodland Hills, Hollywood, Dallas, Chicago, Orlando, Wilmington
and Toronto and Vancouver, Canada. In addition to camera rental, Dallas,
Chicago, Orlando and Toronto also provide lighting, lighting grip and power
distribution and generation equipment. The Company also has a Lee Filters sales
operation located in Burbank, California. Europe consists of camera rental
facilities in Dublin, Ireland, three in London and Manchester, England, Glasgow,
Scotland, and Marseilles and Paris, France. In addition, Europe also includes
the Lee Lighting and Lee Filters operations in the United Kingdom and the
lighting consumables sales facility in Paris, France. The Asia Pacific business
segment consists of camera rental facilities in Sydney, Brisbane, and Melbourne,
Australia, and Auckland and Wellington, New Zealand and an equipment case
manufacturer in Moss Vale, Australia. The rental facilities in Australia also
provide lighting, lighting grip and power distribution and generation equipment.

The Company evaluates performance and allocates resources based on profit or
loss from operations before net interest, income taxes, depreciation and
amortization ("EBITDA"). Management believes that EBITDA serves as an important
financial analysis tool for measuring financial information such as operating
performance, liquidity and leverage.

The following table presents revenue and other financial information by business
segment (in thousands):

<TABLE>
<CAPTION>
                                                             DECEMBER 31, 2000
                                      ---------------------------------------------------------------
                                         NORTH                      ASIA
                                        AMERICA       EUROPE       PACIFIC      CORPORATE     TOTAL
                                      ---------------------------------------------------------------
<S>                                      <C>            <C>          <C>         <C>          <C>
Revenue from external customers..      $103,988      $78,523       $22,117      $     -     $204,628
Intersegment revenue.............        13,611        4,696             -            -       18,307
Operating profit (loss)..........        32,763         (582)        2,165       (3,552)      30,794
Depreciation and amortization....        24,165        8,890         3,132        1,739       37,926
Capital expenditures.............        22,377        5,825         2,544            -       30,746
Long-lived assets ...............       172,499       39,186        13,862        7,956      233,503
Total assets.....................       189,542       68,706        19,430        7,034      284,712
</TABLE>



                                      F-23
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


10. GEOGRAPHICAL AND BUSINESS SEGMENT INFORMATION (CONTINUED)

<TABLE>
<CAPTION>
                                                             DECEMBER 31, 1999
                                      ---------------------------------------------------------------
                                        NORTH                      ASIA
                                       AMERICA       EUROPE       PACIFIC      CORPORATE     TOTAL
                                      ---------------------------------------------------------------
<S>                                    <C>           <C>           <C>          <C>         <C>
Revenue from external customers..      $101,620      $76,385       $24,746      $     -     $202,751
Intersegment revenue.............        13,029        4,080             -            -       17,109
Operating profit (loss)..........        29,440       (1,842)        2,643       (3,629)      26,612
Depreciation and amortization....        22,952        9,215         3,139        1,634       36,940
Capital expenditures.............        24,049        7,920         3,683            4       35,656
Long-lived assets................       169,083       45,306        17,307        9,559      241,255
Total assets.....................       186,097       72,141        23,833        9,487      291,558

<CAPTION>
                                                             DECEMBER 31, 1998
                                      ---------------------------------------------------------------
                                        NORTH                      ASIA
                                       AMERICA       EUROPE       PACIFIC      CORPORATE     TOTAL
                                      ---------------------------------------------------------------
<S>                                    <C>           <C>           <C>          <C>         <C>
Revenue from external customers..      $103,988      $78,523       $22,117      $     -     $204,628
Intersegment revenue.............        10,286        3,264             -            -       13,550
Panavision Recapitalization
  charges........................             -       (1,770)            -      (56,956)     (58,726)
Operating profit (loss)..........        27,268         (391)        2,256      (58,985)     (29,852)
Depreciation and amortization....        21,271        8,676         2,125        1,089       33,161
Capital expenditures.............        35,976       11,616         2,392            8       49,992
Long-lived assets ...............       167,507       48,831        11,990       10,058      238,386
Total assets.....................       184,173       76,290        16,417       14,877      291,757
</TABLE>

The accounting policies of the business segments are the same as those described
in Note 1 of the Notes to Consolidated Financial Statements of the Company. The
Company's income taxes are included in the consolidated federal income tax
return of the Company and its subsidiaries and are allocated based upon the
relative contribution to the Company's consolidated taxable income/(loss) and
changes in temporary differences. The allocation of taxes is not evaluated at
the segment level and, therefore, the Company does not believe the information
is material to these consolidated financial statements. Intercompany profit or
loss resulting from intersegment sales or transfers has been eliminated in the
consolidated results.


Revenue and operating cost by product groups is presented on the Consolidated
Statements of Operations in the Consolidated Financial Statements of the
Company.



                                      F-24

<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


11. COMMITMENTS AND CONTINGENCIES

The Company leases real estate, equipment, and vehicles under non-cancelable
operating leases. Future minimum payments under non-cancelable operating leases
with initial or remaining terms of one year or more are presented below (in
thousands):


         2001.......................................    $  7,591
         2002.......................................       7,074
         2003.......................................       6,225
         2004.......................................       4,837
         2005.......................................       4,391
         Thereafter.................................      17,884
                                                        --------
                                                        $ 48,002
                                                        ========

During the years ended December 31, 2000, 1999 and 1998, rental expense under
operating leases was $8,053,000, $7,598,000 and $6,637,000, respectively.

The Company and its subsidiaries are defendants in actions for matters arising
out of normal business operations. The Company, based in part on the advice of
legal counsel, does not believe that any such proceedings currently pending will
have a materially adverse effect on its consolidated financial position, results
of operations, or cash flows.

12. RELATED PARTY TRANSACTIONS

At December 31, 2000, the Company recorded amounts payable to DHD Ventures, LLC
(see Note 13) of approximately $81,000 relating to equipment rentals facilitated
by Panavision on behalf of DHD Ventures. Such amount is included as a reduction
of accounts receivable in the accompanying consolidated balance sheets.

Included in other assets at December 31, 2000 and 1999, is a loan receivable of
$450,000 due in 2003 from Pany Rental, Inc. (dba Panavision New York), an agent
in which the Company acquired a one-third interest during 1994.

As of February 1, 1999, the Company and certain of its subsidiaries and Mafco
entered into the Tax Sharing Agreement, pursuant to which Mafco has agreed to
indemnify the Company against federal, state or local income tax liabilities of
the consolidated or combined group of which Mafco (or a subsidiary of Mafco
other than the Company or its subsidiaries) is the common parent for taxable
periods beginning on or after February 1, 1999 during which the Company or a
subsidiary of the Company is a member of such group. See Note 6 for a discussion
of the Tax Sharing Agreement.




                                      F-25
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


12. RELATED PARTY TRANSACTIONS (CONTINUED)

In April 1998 and December 1997, in order to facilitate the payment of taxes
related to the exercise of options, which were issued pursuant to the Panavision
Inc. Stock Option Plan, the Company made advances to certain officers and key
employees in the form of notes. Interest on the notes compounded semiannually at
the applicable federal rate in effect on the date the notes were issued. The
notes matured and were repaid in full immediately following consummation of the
Panavision Recapitalization.

Mr. Farrand, an executive officer of Panavision, was the obligor in respect of a
promissory demand note issued to the Company in January 1987. The principal
amount of and accrued interest on this note were $539,949 and $55,132,
respectively, as of June 4, 1998. The note accrued interest at a rate of 7.04%
per annum. This note was originally issued in connection with Mr. Farrand's
purchase of a residence and all principal and interest were repaid at the time
of the Panavision Recapitalization.

13. BUSINESS VENTURE


In July 2000, the Company announced the establishment of a strategic
relationship with Sony Electronics Inc. ("Sony") to form DHD Ventures, LLC ("DHD
Ventures"). This company, along with Panavision, couples Sony's 24P CINEALTA(TM)
high definition digital camera with Panavision's advanced PRIMO DIGITAL(TM)
lenses to form a state-of-the-art digital camera system for use in the motion
picture and television industry. These camera systems are available for rent
through Panavision's domestic and international owned and operated facilities
and worldwide agent network.


In addition, Sony purchased, for an aggregate consideration of $10.0 million,
714,300 shares of Panavision Common Stock, representing approximately 8% of
Panavision's Common Stock, and a warrant to acquire an additional 714,300 shares
of Panavision Common Stock at an exercise price of $17.50 per share, subject to
adjustment. The warrants are fully exercisable at any time through July 25,
2010.

14. PROPOSED TRANSACTION


On November 9, 2000, Mafco proposed a transaction to the Board of Directors of M
& F Worldwide Corp. pursuant to which PX Holding would sell to M & F Worldwide
Corp. 7,320,225 shares of common stock of the Company, representing 83.47% of
the issued and outstanding shares of capital stock of the Company for a price of
$190.3 million, representing PX Holding's cost, plus an appropriate premium to
be negotiated, representing the growth in the Company's current business and the
prospective benefits from its development of digital image technology. Mafco
would be prepared to accept a mix of cash and newly-issued shares of capital
stock of M & F Worldwide Corp. However, in light of the fact that Mafco has a
substantial equity interest in M & F Worldwide Corp., the Board of Directors of
M & F Worldwide Corp. has constituted a special committee of independent
directors to consider the proposal.




                                      F-26
<PAGE>

                                 Panavision Inc.

            Notes to Consolidated Financial Statements - (Continued)
                                December 31, 2000


15. QUARTERLY OPERATING DATA (UNAUDITED)

The following is a summary of unaudited quarterly results of operations (in
thousands, except per share data):

<TABLE>
<CAPTION>
                                                                       QUARTER
                                              ------------------------------------------------------
                                                FIRST         SECOND          THIRD         FOURTH
                                              ---------      --------       ---------     ----------
<S>                                           <C>            <C>            <C>            <C>
YEAR ENDED DECEMBER 31, 2000
Total revenue.............................    $ 48,206       $ 45,950       $ 54,185       $ 56,287
Gross margin..............................      21,164         19,672         25,718         27,779
Net loss..................................      (8,105)        (9,484)        (3,777)        (2,279)
Loss per share - Basic and Diluted........    $  (1.01)      $  (1.17)      $  (0.44)      $  (0.26)
                                              =========      ========       =========      =========

YEAR ENDED DECEMBER 31, 1999
Total revenue.............................    $ 47,017       $ 47,205       $ 53,489       $ 55,040
Gross margin..............................      20,266         19,459         25,057         27,361
Net loss..................................      (6,073)        (7,720)        (2,160)           (85)
Loss per share - Basic and Diluted........    $  (0.75)      $  (0.96)      $  (0.27)      $  (0.01)
                                              =========      ========       =========      =========
</TABLE>




                                      F-27
<PAGE>





                                               Panavision Inc.

          Schedule II - Valuation and Qualifying Accounts and Reserves
              for the years ended December 31, 2000, 1999 and 1998
                                 (IN THOUSANDS)


<TABLE>
<CAPTION>
                                        BEGINNING      AMOUNTS       BALANCES
                                         BALANCE      RESERVED      WRITTEN OFF    ENDING BALANCE
                                       -----------   ----------    -------------  ----------------
<S>                                       <C>            <C>          <C>             <C>
Allowance for Doubtful Accounts
-------------------------------
December 31, 2000                         $ 2,368        $   440      $    901        $ 1,907
December 31, 1999                         $ 3,391        $  (67)      $    956        $ 2,368
December 31, 1998                         $ 3,959        $   308      $    876        $ 3,391
</TABLE>






                                      S-1
<PAGE>


                                  EXHIBIT INDEX

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K

(a)(1)&(2)    The consolidated financial statements and consolidated financial
              statement schedule filed as part of this Annual Report on Form
              10-K can be found beginning on page F-1.

(a)(3)        See below

(b)           Reports on Form 8-K

              During the fourth quarter of 2000, the Company did not file any
              Current Reports on Form 8-K.

(d)           Exhibits

3.            CERTIFICATE OF INCORPORATION AND BY-LAWS

3.1           Restated Certificate of Incorporation of the Company (incorporated
              herein by reference to the identically numbered exhibit from the
              Company's Current Report on Form 10-Q for the quarter ended March
              31, 1999 and filed with the Securities and Exchange Commission on
              May 13, 1999).

3.2           Restated By-Laws of the Company (incorporated herein by reference
              to the identically numbered exhibit from the Company's Current
              Report on Form 10-Q for the quarter ended March 31, 1999 and filed
              with the Securities and Exchange Commission on May 13, 1999).

              INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING
              INDENTURES.

4.1           Indenture, dated as of February 11, 1998, between PX Escrow and
              The Bank of New York, as Trustee, relating to the Company's 9 5/8%
              Senior Subordinated Discount Notes Due 2006 (the "Indenture").
              Incorporated herein by reference to the identically numbered
              exhibit to the Company's Registration Statement on Form S-1,
              Registration No. 333-59363 filed with the Securities and Exchange
              Commission on October 8, 1998.

4.2           First Supplemental Indenture dated June 4, 1998, among PX Escrow,
              the Company and the Trustee, amending the Indenture (incorporated
              herein by reference to the identically numbered exhibit to the
              Company's Registration Statement on Form S-1, Registration No.
              333-59363 filed with the Securities and Exchange Commission on
              October 8, 1998).

4.3           Credit Agreement, dated June 4, 1998, among Panavision Inc., the
              several lenders named therein, Chase Securities Inc., as Advisor
              and Arranger, and The Chase Manhattan Bank, as Administrative
              Agent (incorporated herein by reference to the identically
              numbered exhibit from the Company's Current Report on Form 8-K
              dated June 4, 1998 and filed with the Securities and Exchange
              Commission on June 19, 1998).

4.4           Assumption Agreement, dated as of June 4, 1998, between PX Escrow
              Corporation and Panavision Inc. (incorporated herein by reference
              to the identically numbered exhibit from the Company's Current
              Report on Form 8-K dated June 4, 1998 and filed with the
              Securities and Exchange Commission on June 19, 1998).

4.5           Registration Rights Agreement, dated as of June 5, 1998, between
              Panavision Inc. and PX Holding Corporation (incorporated herein by
              reference to the identically numbered exhibit from the Company's
              Annual Report on Form 10-K for the year ended December 31, 1998).

4.6           First Amendment, dated as of September 30, 1998, to the Credit
              Agreement among Panavision Inc., the several lenders named
              therein, Chase Securities Inc., as Advisor and Arranger, and The
              Chase Manhattan Bank, as Administrative Agent (incorporated herein
              by reference to the identically numbered exhibit from the
              Company's Annual Report on Form 10-K for the year ended December
              31, 1998).

4.7           Second Amendment, dated as of June 30, 1999, to the Credit
              Agreement among Panavision Inc., the several lenders named
              therein, Chase Securities Inc., as Advisor and Arranger, and The
              Chase Manhattan Bank, as Administrative Agent (incorporated herein
              by reference to the identically numbered exhibit to the Company's
              Annual Report on Form 10-K for the year ended December 31, 1999).


<PAGE>


EXHIBIT
NUMBER        DESCRIPTION
-------       ------------
10.           MATERIAL CONTRACTS.

10.1          Panavision Inc. 1999 Stock Option Plan (incorporated herein be
              reference from Annex A of the Company's 1999 Definitive Proxy
              Statement dated March 31, 1999).

10.2          Panavision Inc. 1999 Executive Incentive Compensation Plan
              (incorporated herein by reference from the Company's 1999
              Definitive Proxy Statement dated March 31, 1999).

10.3          Employment Agreement, dated as of January 1, 1999, between
              Panavision Inc. and John S. Farrand (incorporated herein by
              reference to the identically numbered exhibit from the Company's
              Annual Report on Form 10-K for the year ended December 31, 1998).

10.4          Lease, dated June 13, 1995, between the Company and Trizec Warner
              Inc. (incorporated herein by reference to the identically numbered
              exhibit to the Company's Registration Statement on Form S-1,
              Registration No. 333-12235).

10.7          Agreement, dated May 18, 1997, among Visual Action Holdings plc,
              Panavision Europe Limited and the Company (incorporated herein by
              reference to Exhibit 2.1 to the Company's Current Report on Form
              8-K/A Amendment No. 1 to Form 8-K dated June 5, 1997).

10.8          Agreement, dated May 18, 1997, between Visual Action Holdings plc
              and the Company (incorporated herein by reference to Exhibit 2.2
              to the Company's Current Report on Form 8-K/A Amendment No. 1 to
              Form 8-K dated June 5, 1997).

10.9          Stock Purchase Agreement, dated May 18, 1997, among Visual Action
              Holdings, Inc., Visual Action Holdings plc and the Company
              (incorporated herein by reference to Exhibit 2.3 to the Company's
              Current Report on Form 8-K/A Amendment No. 1 to Form 8-K dated
              June 5, 1997).

10.10         Credit Agreement, dated June 5, 1997, among Panavision
              International, L.P., the subsidiary guarantors and the lenders
              listed therein, and The Chase Manhattan Bank, as Administrative
              Agent (incorporated herein by reference to Exhibit 10.1 to the
              Company's Quarterly Report on Form 10-Q for the quarter ended June
              30, 1997).

10.11         Agreement of Recapitalization and Merger, dated as of December 18,
              1997, by and among PX Holding Corporation, PX Merger Corporation
              and the Company (incorporated herein by reference to Exhibit 10.1
              to the Company's Current Report on Form 8-K dated December 18,
              1997).

10.12         Voting and Stockholders Agreement, dated as of December 18, 1997,
              by and among Warburg Pincus Capital Company, L.P., the Company and
              Mafco Holdings Inc. (incorporated by reference to Exhibit 10.2 to
              the Company's Current Report of Form 8-K dated December 18, 1997).

10.13         Registration Agreement dated as of February 11, 1998 by and among
              PX Escrow and Credit Suisse First Boston Corporation and Schroder
              & Co. Inc. (incorporated herein by reference to the identically
              numbered exhibit to the Company's Registration Statement on Form
              S-1, Registration No. 333-59363, filed with the Securities and
              Exchange Commission on October 8, 1998).

10.14         Amended and Restated Voting and Stockholders Agreement dated as of
              April 16, 1998, by and among Warburg Pincus Capital Company, L.P.,
              Panavision Inc., and Mafco Holdings Inc. (incorporated herein by
              reference from the Company's Definitive Proxy Statement filed with
              the Securities and Exchange Commission on May 6, 1998).

10.15         Stock Purchase Agreement, dated as of February 1, 1999, between PX
              Holding Corporation and Warburg, Pincus Capital Company, L.P.
              (incorporated herein by reference to the identically numbered
              exhibit from the Company's Annual Report on Form 10-K for the year
              ended December 31, 1998).

10.16         Tax Sharing Agreement, dated as of February 1, 1999, between Mafco
              Holdings Inc. and Panavision Inc. (incorporated herein by
              reference to the identically numbered exhibit from the Company's
              Annual Report on Form 10-K for the year ended December 31, 1998).

10.17         Stock and Warrant Purchase Agreement dated July 26, 2000 by and
              between Sony Electronics Inc. and Panavision Inc. (incorporated
              herein by reference to the identically numbered exhibit from the
              Company's Quarterly Report on Form 10-Q for the quarter ended June
              30, 2000).

10.18         Warrant No. W-1, dated July 26, 2000, Warrant for Purchase of
              Shares of Common Stock from Panavision Inc. by Sony Electronics
              Inc. (incorporated herein by reference to the identically numbered
              exhibit from the Company's Quarterly Report on Form 10-Q for the
              quarter ended June 30, 2000).



<PAGE>

EXHIBIT
NUMBER        DESCRIPTION
-------       -----------
10.19         Panavision Inc. Stockholders Agreement dated July 26, 2000 by and
              among Panavision Inc. and Sony Electronics Inc. (incorporated
              herein by reference to the identically numbered exhibit from the
              Company's Quarterly Report on Form 10-Q for the quarter ended June
              30, 2000).

10.20         Registration Rights Agreement dated July 26, 2000 by and between
              Panavision Inc. and Sony Electronics Inc. (incorporated herein by
              reference to the identically numbered exhibit from the Company's
              Quarterly Report on Form 10-Q for the quarter ended June 30,
              2000).

21.           SUBSIDIARIES.

21.1          Subsidiaries of the Company.

23.           CONSENTS

23.1          Consent of Ernst & Young LLP

24.           POWERS OF ATTORNEY.

24.1          Power of Attorney executed by Ronald O. Perelman.

24.2          Power of Attorney executed by Martin D. Payson.

24.3          Power of Attorney executed by Edward Grebow.

24.4          Power of Attorney executed by James R. Maher.

24.5          Power of Attorney executed by John S. Farrand.

24.6          Power of Attorney executed by Kenneth Ziffren.

24.7          Power of Attorney executed by Donald G. Drapkin.

24.8          Power of Attorney executed by Philip E. Beekman.

24.9          Power of Attorney executed by William C. Scott.

99.           MISCELLANEOUS.

99.1          Press Release of Panavision Inc. dated June 4, 1998 (incorporated
              herein by reference to the identically numbered exhibit from the
              Company's Current Report on Form 8-K dated June 4, 1998 and filed
              with the Securities and Exchange Commission on June 19, 1998).