Silver Screen Partners Third Quarter Report

                               September 30, 1998


                                     SILVER
                                     SCREEN




                                      F-1
<PAGE>


DEAR LIMITED PARTNER:


     We are pleased to report that Silver  Screen  Partners,  L.P.  has sold the
remaining  rights  to its  film  portfolio  to HBO  and can  now  dissolve.  The
Partnership received $350,000 from the sale.

     The  Partnership  expects to dissolve on  November  16 and  distribute  the
available balance of cash at that time.

     The final  accounting  will be provided  in the 1998 Annual  Report and tax
information  which will be mailed by March 15. If you need any assistance in the
meantime,  please contact our Investor Relations Department between the hours of
10 A.M. and 2 P.M., Eastern Standard Time.

Sincerely,


/s/Roland W. Betts


Roland W. Betts
President


                                      F-2
<PAGE>


Balance Sheets (Unaudited)
--------------------------
                                                 Sept. 30, 1998    Dec. 31, 1997
                                                 --------------    -------------
ASSETS

Current assets:
Cash ...........................................    $    22,498     $    15,583
Temporary investments (at cost, plus accrued
  interest which approximates market) ..........      2,327,212       2,650,398
                                                    -----------     -----------
                                                    $ 2,349,710     $ 2,665,981
                                                    ===========     ===========

LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Due to managing general partner ................    $     8,456     $    18,165
                                                    -----------     -----------
Total current liabilities ......................          8,456          18,165
Other liabilities ..............................           --           598,273
                                                    -----------     -----------
Total liabilities ..............................          8,456         616,438
                                                    -----------     -----------
Partners' equity:
General partners ...............................       (716,683)       (719,600)
Limited partners ...............................      3,057,937       2,769,143
                                                    -----------     -----------
Total partners' equity .........................      2,341,254       2,049,543
                                                    -----------     -----------
                                                    $ 2,349,710     $ 2,665,981
                                                    ===========     ===========


                       See notes to financial statements.



                                      F-3
<PAGE>


STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
                                                    Three Months       Nine Months       Three Months       Nine Months
                                                           Ended             Ended              Ended             Ended
                                                   Sept.30, 1998     Sept.30, 1998      Sept.30, 1997     Sept.30, 1997
                                                   -------------     -------------      -------------     -------------
<S>                                                <C>                 <C>                 <C>                 <C>
REVENUES:
Film revenues ................................     $ 350,000           $ 353,595           $     398           $   7,561
Interest income ..............................        26,300              92,837              36,600             116,787
                                                   ---------           ---------           ---------           ---------
                                                     376,300             446,432              36,998             124,348

COSTS AND EXPENSES:                                                                                         
Film industry guilds obligation ..............          --               (30,188)               --                  --
General and administrative expenses ..........       (35,503)           (124,533)            (32,132)            (98,286)
                                                   ---------           ---------           ---------           ---------
Net income ...................................     $ 340,797           $ 291,711           $   4,866           $  26,062
                                                   =========           =========           =========           =========

NET INCOME ALLOCATED TO:                                                                                    
General partners .............................     $   3,408           $   2,917           $      49           $     261
Limited partners .............................       337,389             288,794               4,817              25,801
                                                   ---------           ---------           ---------           ---------
                                                   $ 340,797           $ 291,711           $   4,866           $  26,062
                                                   =========           =========           =========           =========

Net income per a $500 limited partnership unit                                                              
  (based on 165,639 units outstanding) .......     $    2.04           $    1.74           $    0.03           $    0.16
                                                   =========           =========           =========           =========
                                                                                                            
</TABLE>              
                       See notes to financial statements.                       



STATEMENTS OF PARTNERS' EQUITY (UNAUDITED)
<TABLE>
<CAPTION>
                                                                    Year Ended December 31, 1997
                                                        and Nine Months Ended September 30, 1998
                                          ======================================================
                                          General Partners     Limited Partners         Total
                                          ----------------     ----------------         -----

<S>                                      <C>                   <C>                  <C>        
Balance, January 1, 1997 ............    $  (719,930)          $ 2,736,466          $ 2,016,536
Net income, 1997 ....................            330                32,677               33,007
Distributions, 1997 .................           --                    --                   --
                                         -----------           -----------          -----------

Balance, December 31, 1997 ..........       (719,600)            2,769,143            2,049,543
Net income, nine months 1998 ........          2,917               288,794              291,711
Distributions during nine months 1998           --                    --                   --
                                         -----------           -----------          -----------
                                         $  (716,683)          $ 3,057,937          $ 2,341,254
                                         ===========           ===========          ===========

</TABLE>

                       See notes to financial statements.


                                      F-4
<PAGE>


STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
                                                     Nine Months Ended   Nine Months Ended
                                                        Sept. 30, 1998      Sept. 30, 1997
                                                     ------------------  -----------------
<S>                                                          <C>                <C>      
CASH FLOWS FROM OPERATING ACTIVITIES:                                          
                                                                               
Net income ...............................................   $ 291,711          $  26,062
Adjustments to reconcile net income to net
    cash provided by operating activities:
    (Increase) decrease in accrued interest receivable ...      (1,814)             3,689
  Net change in operating assets and liabilities:
    (Decrease) increase in due to managing general partner      (9,709)             8,211
    Decrease in other liabilities ........................    (598,273)          (342,434)
                                                             ---------          ---------
Net cash used in operating activities ....................    (318,085)          (304,472)
                                                             ---------          ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of temporary investments, net .......................     325,000            336,636
                                                             ---------          ---------
Net cash provided by investing activities ................     325,000            336,636
                                                             ---------          ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners ................................        --                 --
                                                             ---------          ---------
Net cash used in financing activities ....................        --                 --
                                                             ---------          ---------
Net increase in cash .....................................       6,915             32,164
Cash, beginning of year ..................................      15,583             27,424
                                                             ---------          ---------
Cash at end of nine months ...............................   $  22,498          $  59,588
                                                             =========          =========


</TABLE>

                       See notes to financial statements.




                                      F-5
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NOTES TO FINANCIAL STATEMENTS


TEMPORARY INVESTMENTS

Temporary investments represent investments in commercial paper.


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 1998,  the  Partnership  received
approximately $3,595 in film revenues and $350,000 for the sale of the rights of
the seven films.

The Partnership  resolved all issues with the film industry guilds in the second
quarter and  recognized an expense of $30,187,  which  represents the difference
between  the  settlement  amounting  to  $628,460  and  the  reserve  for  other
liabilities of $598,273.

The  Partnership  expects to dissolve on November  16, 1998 and  distribute  the
remaining balance of cash less expenses on or before that date.




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













C 1998 Silver Screen Management, Inc.



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