S I L V E R    S C R E E N    P A R T N E R S   I V,   L. P.
                                    F i r s t
                                  Q u a r t e r
                                   R e p o r t
                         M a r c h    3 1 ,    1 9 9 8




                                      F-1
<PAGE>



DEAR LIMITED PARTNER:

     The 1998 first  quarter cash  distribution  totals $4.8  million,  bringing
total distributions since the Partnership's inception in 1988 to $600 million.

     First  quarter  revenue  was  generated  principally  from  the  theatrical
re-release of "The Little Mermaid," and from sales of merchandise related to the
film.  "Pretty Woman"  contributed a substantial amount of revenue from the U.S.
home video and syndicated television markets.

     Partnership  revenue in the future is expected to be generated  principally
from the Disney buyout of the Silver Screen IV-Disney Joint Venture.  As always,
distributions  depend on the amount of revenue generated each quarter, and there
may be  quarters  when  revenue  may be  insufficient  to justify  making a cash
distribution.

     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  $274 to $304 per unit to investors (this amount
includes all anticipated future quarterly  distributions and the buyout proceeds
from  Disney).  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  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  Second  Quarter  Report  will be  mailed  in  July.  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)
---------------------------

                                                    March 31,       December 31,
                                                       1998             1997
                                                   ------------     ------------

ASSETS
Current assets:
Cash ...........................................                     $   132,879
Temporary investments (at cost plus accrued
  interest, which approximates market) .........     $ 7,571,695       7,180,956
                                                     -----------     -----------
Total current assets ...........................       7,571,695       7,313,835
Investment in Joint Venture ....................      69,032,601      70,121,760
                                                     -----------     -----------
                                                     $76,604,296     $77,435,595
                                                     ===========     ===========
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Cash overdraft .................................     $   242,586
Due to managing general partner ................          73,781     $    35,696
Accrued unincorporated business tax ............         126,157         126,157
                                                     -----------     -----------
Total liabilities ..............................         442,524         161,853
                                                     -----------     -----------
Partners' equity:
General partners ...............................            --              --
Limited partners ...............................      76,161,772      77,273,742
                                                     -----------     -----------
Total partners' equity .........................      76,161,772      77,273,742
                                                     -----------     -----------
                                                     $76,604,296     $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)
-----------------------------------------------

                                                    Three Months    Three Months
                                                        Ended          Ended
                                                      March 31,      March 31,
                                                         1998           1997
                                                      -----------    -----------

REVENUES:
Income from Joint Venture ........................     $3,918,926     $4,903,755
Interest income ..................................         65,926         82,665
                                                       ----------     ----------
                                                        3,984,852      4,986,420
COSTS AND EXPENSES:
General and administrative expenses ..............        207,933        171,377
                                                       ----------     ----------
Net income .......................................     $3,776,919     $4,815,043
                                                       ==========     ==========
Net income allocated to:
General partners .................................     $  377,692     $  481,504
Limited partners .................................      3,399,227      4,333,539
                                                       ----------     ----------
                                                       $3,776,919     $4,815,043
                                                       ==========     ==========
Net income per a $500 limited partnership
  unit (based on 800,000 units outstanding) ......     $     4.25     $     5.42
                                                       ==========     ==========


                       See notes to financial statements.



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

                          Year Ended December 31, 1997
                      and Three Months Ended March 31, 1998
<TABLE>
<CAPTION>
                                                      General          Limited
                                                      Partners         Partners           Total
                                                   -------------      -----------      ----------- 
<S>              <C>                                 <C>             <C>             <C>         
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, three months 1998 ................            377,692       3,399,227       3,776,919
Distributions during three months 1998                   (488,889)     (4,400,000)     (4,888,889)
Allocation under Treasury Regulation              
   Section 1.704-1(b) ........................            111,197        (111,197)           --
                                                     ------------    ------------    ------------
                                                     $       --      $ 76,161,772    $ 76,161,772
                                                     ============    ============    ============
</TABLE>                               


                       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)
-----------------------------------------------

                                                  Three Months    Three Months
                                                      Ended            Ended
                                                 March 31, 1998   March 31, 1997
                                                  ------------     ------------


CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .....................................   $  3,776,919    $  4,815,043
Adjustments to reconcile net income to net
  cash provided by operating activities:
(Increase) decrease in accrued
  interest receivable ..........................         (2,915)        136,621
Charge on overhead fee payable .................           --            13,244
Net change in operating assets
  and liabilities:
Increase in due to managing general partner ....         38,085          41,716
                                                   ------------    ------------
Net cash provided by operating activities ......      3,812,089       5,006,624
                                                   ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in investment in Joint Venture ........      1,089,159       1,362,866
(Purchase) sale of temporary investments, net ..       (387,824)     17,437,468
                                                   ------------    ------------
Net cash provided by (used in)
  investing activities .........................        701,335      18,800,334
                                                   ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners ......................     (4,888,889)           --
Decrease in overhead fee payable ...............           --       (23,852,664)
                                                   ------------    ------------
Net cash used in financing activities ..........     (4,888,889)    (23,852,664)
                                                   ------------    ------------
Net decrease in cash ...........................       (375,465)        (45,706)
Cash, beginning of year ........................        132,879         314,835
                                                   ------------    ------------
(Cash overdraft) cash at end of three months ...   $   (242,586)   $    269,129
                                                   ============    ============

                       See notes to financial statements.



                                      F-5
<PAGE>


NOTES TO FINANCIAL STATEMENTS

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 to ultimate revenues expected to be received.
               


                                      F-6
<PAGE>


(C) 1998 Silver Screen Management Services, Inc.       Design: Pentagram


















                                      F-7
<PAGE>





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

















                                      F-7
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