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, 1997



C 1997 Silver Screen Management Services, Inc.




                                      F-1
<PAGE>



D E A R   L I M I T E D   P A R T N E R:

     Our previous quarterly cash distributions total approximately $585 million.
Revenues in the second quarter of 1997,  however,  are not sufficient to justify
making a cash distribution. This is only the second time since the Partnership's
inception  in 1988 that this has  occurred.  We expect  that there will again be
upcoming quarters when no distributions will be paid.

     The  majority  of  Partnership  revenue  in the  future is  expected  to be
generated from the theatrical  re-release of "The Little Mermaid" (scheduled for
this  Christmas),  and the Disney  buyout of the Silver Screen  IV-Disney  Joint
Venture.

     Between now and the dissolution of the  Partnership,  current  expectations
are that  Silver  Screen  Partners IV will  distribute  $292 to $322 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.

     As you may be aware,  a number of private  investment  groups have sent out
correspondence  relating to a tender offer for units in Silver  Screen  Partners
IV, and there may be other such offers in the future.  Silver Screen Partners IV
and Silver Screen Management  Services,  Inc. are not affiliated in any way with
these  firms  and can make no  recommendation  as to the  merits  of any past or
future tender offer. If and when you receive such solicitations,  unless you are
interested  in selling your units,  no action by you is  required.  We hope this
information  will help you in evaluating  the various bids from the tender offer
groups.

     Our Third Quarter Report will be mailed to you 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.

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)

<TABLE>
<CAPTION>

                                                       June 30, 1997     December 31, 1996
                                                       -------------     -----------------
<S>                                                     <C>                  <C>
ASSETS

Current assets:
Cash ................................................   $     60,666         $    314,835
Temporary investments (at cost, plus accrued                               
  interest, which approximates market) ..............      1,694,430           25,794,708
                                                        ------------         ------------
Total current assets ................................      1,755,096           26,109,543
Investment in Joint Venture .........................     72,599,309           74,211,904
                                                        ------------         ------------
                                                        $ 74,354,405         $100,321,447
                                                        ============         ============
LIABILITIES AND PARTNERS' EQUITY                                           
                                                                           
Current liabilities:                                                       
Due to managing general partner .....................   $      4,924         $      4,960
Accrued unincorporated business tax .................        126,157              153,419
Overhead fees payable ...............................           --             23,839,420
                                                        ------------         ------------
Total liabilities ...................................        131,081           23,997,799
                                                        ------------         ------------
Partners' equity:                                                          
General partners ....................................           --                   --
Limited partners ....................................     74,223,324           76,323,648
                                                        ------------         ------------
Total partners' equity ..............................     74,223,324           76,323,648
                                                        ------------         ------------
                                                        $ 74,354,405         $100,321,447
                                                        ============         ============
</TABLE>

                       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, 1997  June 30, 1997  June 30, 1996   June 30, 1996
                                            -------------  -------------  -------------   -------------
<S>                                            <C>            <C>            <C>            <C>        
REVENUES:

Income from Joint Venture .................    $   898,552    $ 5,802,307    $35,008,242    $51,979,692
Interest income ...........................         54,529        137,194        785,063      1,353,432
                                               -----------    -----------    -----------    -----------
                                                   953,081      5,939,501     35,793,305     53,333,124

COSTS AND EXPENSES:

General and administrative expenses .......         90,670        262,047        706,362      1,696,679
                                               -----------    -----------    -----------    -----------
Net income ................................    $   862,411    $ 5,677,454    $35,086,943    $51,636,445
                                               ===========    ===========    ===========    ===========
NET INCOME ALLOCATED TO:

General partners ..........................    $    86,241    $   567,745    $   350,869    $   516,364
Limited partners ..........................        776,170      5,109,709     34,736,074     51,120,081
                                               -----------    -----------    -----------    -----------
                                               $   862,411    $ 5,677,454    $35,086,943    $51,636,445
                                               ===========    ===========    ===========    ===========
Net income per a $500 limited partnership
  unit (based on 800,000 units outstanding)    $      0.97    $      6.39    $     43.42    $     63.90
                                               ===========    ===========    ===========    ===========
</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)  
<TABLE>
<CAPTION>
                                                                                         Year Ended December 31, 1996
                                                                                   and Six Months Ended June 30, 1997
                                                             ========================================================
                                                                  General Partners   Limited Partners       Total
                                                                  ----------------   ----------------       -----
                                                                                                         
<S>                                                                 <C>              <C>                <C>         
Balance, January 1, 1996 ...................................        $        --       $ 112,802,947     $ 112,802,947
Net income, 1996 ...........................................            2,908,830        72,652,274        75,561,104
Distributions, 1996 ........................................           (6,840,403)     (105,200,000)     (112,040,403)
Allocation under Treasury Regulation Section 1.704-1(b) ....            3,931,573        (3,931,573)             --   
                                                                    -------------     -------------     ------------- 
Balance, December 31, 1996 .................................                 --          76,323,648        76,323,648 
NET INCOME, SIX MONTHS 1997 ................................              567,745         5,109,709         5,677,454 
DISTRIBUTIONS DURING SIX MONTHS 1997 .......................             (777,778)       (7,000,000)       (7,777,778)
ALLOCATION UNDER TREASURY REGULATION SECTION 1.704-1(b) ....                                                          
                                                                          210,033          (210,033)             --   
                                                                    -------------     -------------     ------------- 
                                                                    $        --       $  74,223,324     $  74,223,324
                                                                    =============     =============     =============
</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)
<TABLE>
<CAPTION>
                                                       Six Months Ended   Six Months Ended
                                                          June 30, 1997      June 30, 1996
                                                       ----------------   ----------------
<S>                                                       <C>                <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income .........................................      $  5,677,454       $ 51,636,445
Adjustments to reconcile net income to net
  cash provided by operating activities:
  Decrease (increase) in accrued interest receivable           156,509           (180,204)
  Charge on overhead fee payable ...................            13,244            564,552
Net change in operating assets and liabilities:
  Decrease in accrued unincorporated business tax ..           (27,262)              --
  Decrease in due to managing general partner ......               (36)           (18,435)
                                                          ------------       ------------
Net cash provided by operating activities ..........         5,819,909         52,002,358
                                                          ------------       ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

Decrease in investment in Joint Venture ............         1,612,595         14,446,354
Sale (purchase) of temporary investments, net ......        23,943,769        (26,708,172)
                                                          ------------       ------------
Net cash provided by (used in) investing activities         25,556,364        (12,261,818)
                                                          ------------       ------------

CASH FLOWS FROM FINANCING ACTIVITIES:

Distributions to partners ..........................        (7,777,778)       (36,363,636)
Decrease in overhead fee payable ...................       (23,852,664)        (3,441,176)
                                                          ------------       ------------
Net cash used in financing activities ..............       (31,630,442)       (39,804,812)
                                                          ------------       ------------
Net decrease in cash ...............................          (254,169)           (64,272)
Cash, beginning of year ............................           314,835            392,505
                                                          ------------       ------------
Cash at end of six months ..........................      $     60,666       $    328,233
                                                          ============       ============
</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
that actual cash received bears to ultimate revenues expected.

The Joint  Venture's  fiscal year ends  September  30,  while the  Partnership's
fiscal year ends December 31.


OVERHEAD FEES PAYABLE

The  Partnership   Agreement   provided  that  overhead  fees  received  by  the
Partnership for the benefit of the Managing General Partner ("MGP") would remain
on account with the Partnership with the  understanding  that the MGP would draw
from such account from time to time, in order to cover actual operating expenses
not reimbursed  from other sources.  Such amounts were included in the temporary
investments and earned interest which accrued to the Partnership.  The remaining
fees on account  earned 10% per annum  (compounded  quarterly)  for the MGP. The
amount included in general and administrative  expenses for the six months ended
June 30, 1997 is $13,244.  Pursuant to the Partnership  Agreement,  the overhead
was paid on January 2, 1997.





                                      F-6
<PAGE>