Silver Screen Management Services, Inc.
Chelsea Piers-Pier 62
Suite 300
New York, NY 10011
(212) 336-6700
Recorded News Update:
(800) 444-SILV


                                Silver Screen IV

                                     Second

                                    Quarter

                                     Report

                                      

                                  June 30, 1998



C 1998 Silver Screen Management Services, Inc.




                                      F-1
<PAGE>



Dear Limited Partner:

     The 1998 second quarter cash distribution totals $4 million, bringing total
distributions since the Partnership's inception in 1988 to $604 million.

     Second  quarter  revenue  was  generated  principally  from the  theatrical
re-release of "The Little  Mermaid" and from the sale of merchandise  related to
the film.  "White Fang"  contributed  Partnership  revenue from the foreign free
television  market as well as from the U.S.  syndicated  television  market.  In
addition,  "Beaches" produced revenue this quarter from the foreign free and pay
television markets. Partnership revenue in the future will be generated from the
Disney buyout of the Silver Screen IV-Disney Joint Venture.

     Between now and the dissolution of the  Partnership,  current  expectations
are that, after the current distribution and expenses, Silver Screen Partners IV
will distribute approximately $300 to $305 per unit to investors. The closing of
the purchase by Disney is  scheduled  to occur on November  30, 1998.  The final
distribution  and dissolution of the Partnership is expected to take place on or
before  December 31, 1998.  These figures and dates represent our best estimates
as of today.  Please  note that due to the  expected  dissolution,  requests  to
transfer  Partnership  units as a result of secondary sales will not be accepted
after August 15, 1998.

     Our  Third  Quarter  Report  will be  mailed  in  October.  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                     /s/ Tom A. Bernstein
-------------------                     ------------------------
Roland W. Betts                         Tom A. Bernstein
President                               Executive Vice President





                                      F-2
<PAGE>





B A L A N C E   S H E E T S
(Unaudited)

                                                June 30, 1998    Dec. 31, 1997
                                                -------------    -------------
ASSETS
Current assets:
Cash .......................................     $    40,673       $   132,879
Temporary investments (at cost, plus accrued                    
  interest, which approximates market) .....       5,576,983         7,180,956
                                                 -----------       -----------
Total current assets .......................       5,617,656         7,313,835
Investment in Joint Venture ................      68,187,753        70,121,760
                                                 -----------       -----------
                                                                
                                                 $73,805,409       $77,435,595
                                                 ===========       ===========
LIABILITIES AND PARTNERS' EQUITY                                
Current liabilities:                                            
Due to managing general partner ............     $    37,747       $    35,696
Accrued unincorporated business tax ........            --             126,157
                                                 -----------       -----------
Total liabilities ..........................          37,747           161,853
                                                 -----------       -----------
Partners' equity:                                               
General partners ...........................            --                --
Limited partners ...........................      73,767,662        77,273,742
                                                 -----------       -----------
Total partners' equity .....................      73,767,662        77,273,742
                                                 -----------       -----------
                                                 $73,805,409       $77,435,595
                                                 ===========       ===========

                       See notes to financial statements.





                                      F-3
<PAGE>




S T A T E M E N T S   O F   O P E R A T I O N S
(Unaudited)
<TABLE>
<CAPTION>
                                             Three Months     Six Months   Three Months      Six Months
                                                    Ended          Ended          Ended           Ended
                                            June 30, 1998  June 30, 1998  June 30, 1997   June 30, 1997
                                            -------------  -------------  -------------   -------------
<S>                                            <C>            <C>            <C>            <C>        

REVENUES:

Income from Joint Venture .................    $3,039,865     $6,958,791     $  898,552     $5,802,307
Interest income ...........................        80,745        146,671         54,529        137,194
                                               ----------     ----------     ----------     ----------
                                                3,120,610      7,105,462        953,081      5,939,501
COSTS AND EXPENSES:                                                                       
                                                                                          
General and administrative expenses .......       181,387        389,320         90,670        262,047
                                               ----------     ----------     ----------     ----------
Net income ................................    $2,939,223     $6,716,142     $  862,411     $5,677,454
                                               ==========     ==========     ==========     ==========
NET INCOME ALLOCATED TO:                                                                  
                                                                                          
General partners ..........................    $  293,922     $  671,614     $   86,241     $  567,745
Limited partners ..........................     2,645,301      6,044,528        776,170      5,109,709
                                               ----------     ----------     ----------     ----------
                                               $2,939,223     $6,716,142     $  862,411     $5,677,454
                                               ==========     ==========     ==========     ==========
Net income per a $500 limited partnership                                                 
  unit (based on 800,000 units outstanding)    $     3.31     $     7.56     $     0.97     $     6.39
                                               ==========     ==========     ==========     ==========
                                                                                          
</TABLE>


                       See notes to financial statements.




S T A T E M E N T S   OF   P A R T N E R S '   E Q U I T Y
(Unaudited)  

                                                   Year Ended December 31, 1997
                                             and Six Months Ended June 30, 1998
                                      ==========================================
                                       General        Limited
                                       Partners       Partners        Total
                                      -----------    -----------   -----------

Balance, January 1, 1997 ...........  $       --     $ 76,323,648  $ 76,323,648
Net income, 1997 ...................     1,450,565     13,055,085    14,505,650
Distributions, 1997 ................    (1,355,556)   (12,200,000)  (13,555,556)
Allocation under Treasury Regulation
   Section 1.704-1(b) ..............       (95,009)        95,009          --
                                      ------------   ------------  ------------
Balance, December 31, 1997 .........          --       77,273,742    77,273,742
NET INCOME, SIX MONTHS 1998 ........       671,614      6,044,528     6,716,142
DISTRIBUTIONS DURING SIX MONTHS 1998    (1,022,222)    (9,200,000)  (10,222,222)
ALLOCATION UNDER TREASURY REGULATION
   SECTION 1.704-1(B) ..............       350,608       (350,608)         --
                                      ------------   ------------  ------------
                                      $       --     $ 73,767,662  $ 73,767,662
                                      ============   ============  ============


                       See notes to financial statements.





                                      F-4
<PAGE>




S T A T E M E N T S   O F   C A S H   F L O W S
(Unaudited)
<TABLE>
<CAPTION>
                                                       Six Months Ended   Six Months Ended
                                                          June 30, 1998      June 30, 1997
                                                       ----------------   ----------------
<S>                                                       <C>                <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income .............................................  $  6,716,142       $  5,677,454
Adjustments to reconcile net income to net                                  
  cash provided by operating activities:                                    
  Decrease in accrued interest receivable ..............         5,186            156,509
  Charge on overhead fee payable .......................          --               13,244
Net change in operating assets and liabilities:                             
  Decrease in accrued unincorporated business tax ......      (126,157)           (27,262)
  Increase (decrease) in due to managing general partner         2,051                (36)
                                                          ------------       ------------
Net cash provided by operating activities ..............     6,597,222          5,819,909
                                                          ------------       ------------
                                                                            
CASH FLOWS FROM INVESTING ACTIVITIES:                                       
                                                                            
Decrease in investment in Joint Venture ................     1,934,007          1,612,595
Sale of temporary investments, net .....................     1,598,787         23,943,769
                                                          ------------       ------------
Net cash provided by investing activities ..............     3,532,794         25,556,364
                                                          ------------       ------------
                                                                            
CASH FLOWS FROM FINANCING ACTIVITIES:                                       
                                                                            
Distributions to partners ..............................   (10,222,222)        (7,777,778)
Decrease in overhead fee payable .......................          --          (23,852,664)
                                                          ------------       ------------
Net cash used in financing activities ..................   (10,222,222)       (31,630,442)
                                                          ------------       ------------
Net decrease in cash ...................................       (92,206)          (254,169)
Cash, beginning of year ................................       132,879            314,835
                                                          ------------       ------------
Cash at end of six months ..............................  $     40,673       $     60,666
                                                          ============       ============
                                                                        

</TABLE>

                       See notes to financial statements.





                                      F-5
<PAGE>





N O T E S    T O    F I N A N C I A L    S T A T E M E N T S


TEMPORARY INVESTMENTS

Temporary investments represent investments in commercial paper.


INVESTMENT IN JOINT VENTURE

The Partnership  entered into a Letter  Agreement (the "Buyout  Agreement") with
Disney dated  September 11, 1995  providing for the sale to Disney of all of the
Partnership's  interest in the Joint Venture.  The Buyout Agreement provides for
the payment of the purchase  price of  $330,000,000  in cash (subject to certain
adjustments with respect to revenues  received from the exploitation of animated
films).  Closing  is  scheduled  to  occur  on  November  30,  1998  subject  to
satisfaction of certain customary conditions. In addition to the purchase price,
the Buyout  Agreement  provides  that Buena Vista  Pictures  Distribution,  Inc.
("BV") will continue to account for and make payments to the Joint  Venture,  as
required by the Distribution  Agreement for all revenues  received by BV through
April 30, 1998.

As a result of the Buyout Agreement, the Partnership began using the cost method
of accounting  starting  January 1, 1996.  Under the cost method,  distributions
received are recognized as income and investments  will be reduced in proportion
to the actual cash received bears to ultimate revenues expected.







                                      F-6
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