Silver Screen Partners Third Quarter Report

                               September 30, 1996


                                     SILVER
                                       SCREEN




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<PAGE>


DEAR LIMITED PARTNER:

     The  Partnership  has received all payments  from HBO and has  recovered at
least its full investment in each of its seven films.  Cumulative  distributions
to date total $88 million.

     The   Partnership  has  resolved  the  outstanding  tax  issue  and  is  in
negotiations  regarding the sale of its remaining rights to the films, including
the U.S. home video rights.  At this time, we expect to dissolve the Partnership
by year-end.

     The 1996 Annual Report and tax  information  will be mailed to you by March
15.  These  are  likely  to be the  final  mailings  you will  receive  from the
Partnership.

     If you need any  assistance  in the meantime,  please  contact our Investor
Relations  Department at our new telephone number and address listed on the back
of this report.

     It has been a pleasure to work with and for all of you over the years. From
"Flashpoint"  through  "Volunteers"  we are proud of the films  which we had the
opportunity to finance.

     Thank you for the privilege of serving each of you.

Sincerely,


/s/Roland W. Betts


Roland W. Betts
President


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Balance Sheets (Unaudited)
--------------------------
<TABLE>
<CAPTION>
                                                   September 30, 1996     December 31, 1995
                                                   ------------------     -----------------

ASSETS

Current assets:
<S>                                                     <C>                    <C>        
Cash ................................................   $    39,316            $    28,031

Temporary investments (at cost plus accrued interest,
 which approximates market) (Note 1) ................     2,989,380              3,094,515
                                                        -----------            -----------

                                                        $ 3,028,696            $ 3,122,546
                                                        ===========            ===========

LIABILITIES AND PARTNERS' EQUITY

Current liabilities:

Due to managing general partner .....................   $     4,952            $     6,969
                                                        -----------            -----------

Total current liabilities ...........................         4,952                  6,969

Contingency liability (Note 3) ......................          --                  946,000

Other liabilities ...................................     1,011,829              1,032,723
                                                        -----------            -----------

Total liabilities ...................................   $ 1,016,781            $ 1,985,692
                                                        -----------            -----------

Partners' equity:

General partners ....................................      (719,976)              (728,727)

Limited partners ....................................     2,731,891              1,865,581
                                                        -----------            -----------

Total partners' equity ..............................     2,011,915              1,136,854
                                                        -----------            -----------

                                                        $ 3,028,696            $ 3,122,546
                                                        ===========            ===========
</TABLE>

                       See notes to financial statements.



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<PAGE>


STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
                                                    Three Months       Nine Months       Three Months       Nine Months
                                                           Ended             Ended              Ended             Ended
                                                   Sept.30, 1996     Sept.30, 1996      Sept.30, 1995     Sept.30, 1995
                                                   -------------     -------------      -------------     -------------
REVENUES:
<S>                                                <C>                 <C>                 <C>                 <C>
Film revenues (Note 2) .............               $   1,706           $   7,220           $   3,510           $   7,411
Interest income ....................                  41,949             125,227              45,721             136,230
                                                   ---------           ---------           ---------           ---------
                                                      43,655             132,447              49,231             143,641
COSTS AND EXPENSES:                        
                                           
General and administrative expenses                  (30,461)            (96,786)            (30,607)           (123,777)
                                                   ---------           ---------           ---------           ---------
                                           
Income before tax ..................                  13,194              35,661              18,624              19,864
Unincorporated Business tax (Note 3)                 839,400             839,400                --              (746,000)
                                                   ---------           ---------           ---------           ---------
                                           
Net Income (loss) ..................               $ 852,594           $ 875,061           $  18,624           $(726,136)
                                                   =========           =========           =========           =========
NET INCOME (LOSS) ALLOCATED TO:            
                                           
General partners ...................               $   8,526           $   8,751           $     186           $  (7,261)
Limited partners ...................                 844,068             866,310              18,438            (718,875)
                                                   ---------           ---------           ---------           ---------
                                           
                                                   $ 852,594           $ 875,061           $  18,624           $(726,136)
                                                   =========           =========           =========           =========
Net income (loss) per a $500 limited       
 partnership unit (based on 165,639        
 units outstanding) ................               $    5.10           $    5.23           $    0.11           $   (4.34)
                                                   =========           =========           =========           =========
</TABLE>
                       See notes to financial statements.



STATEMENTS OF PARTNERS' EQUITY (UNAUDITED)
<TABLE>
<CAPTION>
                                                                    Year Ended December 31, 1995
                                                        and Nine Months Ended September 30, 1996
                                          ======================================================
                                          General Partners     Limited Partners         Total
                                          ----------------     ----------------         -----

<S>                                      <C>                   <C>                   <C>        
Balance, January 1, 1995 ............    $  (721,702)          $ 2,561,014           $ 1,839,312
Net loss, 1995 ......................         (7,025)             (695,433)             (702,458)
Distributions, 1995 .................           --                    --                    --
                                         -----------           -----------           -----------
                                      
Balance, December 31, 1995 ..........       (728,727)            1,865,581             1,136,854
Net income, nine months 1996 ........          8,751               866,310               875,061
Distributions during nine months 1996           --                    --                    --
                                         -----------           -----------           -----------
                                      
                                         $  (719,976)          $ 2,731,891            $2,011,915
                                         ===========           ===========            ==========
</TABLE>

                       See notes to financial statements.


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<PAGE>


STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
                                                     Nine Months Ended   Nine Months Ended
                                                        Sept. 30, 1996      Sept. 30, 1995
                                                     ------------------  -----------------
<S>                                                         <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss) ..................................       $ 875,061        $(726,136)
Adjustments to reconcile net income to
  net cash provided by operating activities:
  Decrease (increase) in accrued interest receivable           7,099             (216)
Net change in operating assets and liabilities:
  Decrease in due to managing general partner ......          (2,017)          (1,885)
  (Decrease) increase in contingent liability ......        (946,000)         746,000
  (Decrease) increase in other liabilities .........         (20,894)           7,309
                                                           ---------        --------- 

Net cash (used in) provided by operating activities          (86,751)          25,072
                                                           ---------        --------- 

CASH FLOWS FROM INVESTING ACTIVITIES:

Sale (purchase) of temporary investments, net ......          98,036           (9,734)
                                                           ---------        --------- 

Net cash provided by (used in) investing activities           98,036           (9,734)
                                                           ---------        --------- 

CASH FLOWS FROM FINANCING ACTIVITIES:

Distribution to partners ...........................            --                 --
                                                           ---------        --------- 

Net cash used in financing activities ..............            --                 --
                                                           ---------        --------- 

Net increase in cash ...............................          11,285           15,338
Cash, beginning of year ............................          28,031           42,974
                                                           ---------        --------- 

Cash at end of nine months .........................       $  39,316        $  58,312
                                                           =========        =========
</TABLE>

                       See notes to financial statements.




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<PAGE>


NOTES TO FINANCIAL STATEMENTS


1.   TEMPORARY INVESTMENTS

Temporary investments represent investments in commercial paper.


2.   FILM REVENUES

The film investments  aggregated  approximately  $73,000,000 and have been fully
amortized.  Film  revenues  are  recognized  when  earned  as  reported  by each
distributor.  During the first nine  months of 1996,  the  Partnership  received
approximately $7,220.


3.   UNINCORPORATED BUSINESS TAX

The  Partnership's  tax  returns  were  audited  by the City of New York and the
Partnership had received assessments for unincorporated business tax of $675,887
covering the period from June 8, 1983 (inception)  through December 31, 1990. It
was anticipated that additional  assessments,  approximating  $70,000,  would be
issued for the years  subsequent  to December 31,  1990.  All  assessments  were
subject to interest.  Accordingly,  as of December 31, 1995 the  Partnership had
recorded a contingency reserve of $946,000.

The Partnership  contested  these  assessments and on September 30, 1996 a final
amount of $106,600  (including  interest) was reached with New York City for all
periods  through  December  31,  1995.  The  liability  was paid that date.  The
Partnership recorded an income of $839,400 in 1996, representing the reversal of
the contingency reserve in excess of the settlement.

The amount shown as  Unincorporated  Business Tax is the difference  between the
settlement amount and the contingency liability for unincorporated  business tax
established in earlier years.

The Partnership expects to dissolve by the end of 1996 upon final disposition of
the remaining assets and distribution of cash to the partners.



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Silver Screen Management, Inc.
Chelsea Piers-Pier 62
Suite 300
New York, NY 10011
(212) 336-6700













C 1996 Silver Screen Management, Inc..



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