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

                                      Third

                                     Quarter

                                     Report



                               September 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:

     The 1997 third  quarter cash  distribution  totals $5.2  million,  bringing
total distributions  since the Partnership's  inception in 1988 to approximately
$590 million.

     The majority of  Partnership  revenue this quarter was generated from sales
of  merchandise  related to "The  Little  Mermaid"  and  "Beauty and the Beast."
Another animated film, "The Rescuers Down Under,"  contributed  revenue from the
foreign  home video  market.  Quarterly  revenue was also  generated  by "Pretty
Woman" from the United States syndicated television market.

     Future  Partnership  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  approximately  $286 to $316
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,  if you are not
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.

     The 1997 Annual Report and tax  information  will be mailed to you 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                     /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>

                                              Sept. 30, 1997    Dec. 31, 1996
                                              --------------    -------------
<S>                                            <C>              <C>         
ASSETS

Current assets:
Cash .......................................   $     15,107     $    314,835
Temporary investments (at cost, plus accrued                   
  interest, which approximates market) .....      6,676,420       25,794,708
                                               ------------     ------------
Total current assets .......................      6,691,527       26,109,543
Investment in Joint Venture ................     71,516,164       74,211,904
                                               ------------     ------------
                                               $ 78,207,691     $100,321,447
                                               ============     ============
                                                               
LIABILITIES AND PARTNERS' EQUITY                               
                                                               
Current liabilities:                                           
Due to managing general partner ............   $     32,036     $      4,960
Accrued unincorporated business tax ........        126,157          153,419
Overhead fees payable ......................           --         23,839,420
                                               ------------     ------------
Total liabilities ..........................        158,193       23,997,799
                                               ------------     ------------
Partners' equity:                                              
General partners ...........................           --               --
Limited partners ...........................     78,049,498       76,323,648
                                               ------------     ------------
Total partners' equity .....................     78,049,498       76,323,648
                                               ------------     ------------
                                               $ 78,207,691     $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   ( U N A U D I T E D )
<TABLE>
<CAPTION>
                                          Three Months      Nine Months    Three Months     Nine Months
                                                 Ended            Ended           Ended           Ended
                                        Sept. 30, 1997   Sept. 30, 1997  Sept. 30, 1996  Sept. 30, 1996
                                        --------------   --------------  --------------  --------------
<S>                                        <C>              <C>              <C>            <C>        
REVENUES:
Income from Joint Venture ............     $ 3,897,282      $ 9,699,589      $24,445,771    $76,425,463
Interest income ......................          54,000          191,194          794,533      2,147,965
                                           -----------      -----------      -----------    -----------
                                             3,951,282        9,890,783       25,240,304     78,573,428
                                                                            
COSTS AND EXPENSES:                                                         
General and administrative expenses ..         125,108          387,155          780,405      2,477,084
                                           -----------      -----------      -----------    -----------
Income before tax ....................       3,826,174        9,503,628       24,459,899     76,096,344
Unincorporated Business tax ..........            --               --            995,100        995,100
                                           -----------      -----------      -----------    -----------
Net income ...........................     $ 3,826,174      $ 9,503,628      $23,464,799    $75,101,244
                                           ===========      ===========      ===========    ===========
                                                                            
NET INCOME ALLOCATED TO:                                                    
General partners .....................     $   382,617      $   950,363      $ 2,346,480    $ 2,862,844
Limited partners .....................       3,443,557        8,553,265       21,118,319     72,238,400
                                           -----------      -----------      -----------    -----------
                                           $ 3,826,174      $ 9,503,628      $23,464,799    $75,101,244
                                           ===========      ===========      ===========    ===========
Net income per a $500                                                       
  limited partnership unit (based                                              
  on 800,000 units outstanding) ......     $      4.30      $     10.69      $     26.40    $     90.30
                                           ===========      ===========      ===========    ===========
</TABLE>                                                                  

                       See notes to financial statements.



<TABLE>
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   ( U N A U D I T E D )
<CAPTION>
                                                                    Year Ended December 31, 1996
                                                            and Nine Months Ended Sept. 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, nine months 1997 ...........        950,363           8,553,265           9,503,628
Distributions during nine months 1997 ..       (777,778)         (7,000,000)         (7,777,778)
Allocation under Treasury Regulation ...                                        
   Section 1.704-1(b) ..................       (172,585)            172,585                --
                                          -------------       -------------       -------------
                                          $        --         $  78,049,498       $  78,049,498
                                          =============       =============       =============
</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   ( U N A U D I T E D )
<TABLE>
<CAPTION>
                                                       Nine Months Ended   Nine Months Ended
                                                          Sept. 30, 1997      Sept. 30, 1996
                                                       ----------------   ----------------
<S>                                                        <C>               <C>         
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .............................................   $  9,503,628      $ 75,101,244
Adjustments to reconcile net income to net                                 
  cash provided by operating activities:                                   
  Decrease (increase) in accrued interest receivable ...        129,506          (118,295)
  Charge on overhead fee payable .......................         13,244         1,702,621
Net change in operating assets and liabilities:                            
  Decrease in accrued unincorporated business tax ......        (27,262)             --
  Decrease in other liabilities ........................           --            (100,000)
  Increase (decrease) in due to managing general partner         27,076           (18,935)
                                                           ------------      ------------
Net cash provided by operating activities ..............      9,646,192        76,566,635
                                                           ------------      ------------
                                                                           
CASH FLOWS FROM INVESTING ACTIVITIES:                                      
Decrease in investment in Joint Venture ................      2,695,740        21,240,397
Sale (purchase) of temporary investments, net ..........     18,988,782       (12,329,596)
                                                           ------------      ------------
Net cash provided by  investing activities .............     21,684,522         8,910,801
                                                           ------------      ------------
                                                                           
CASH FLOWS FROM FINANCING ACTIVITIES:                                      
Distributions to partners ..............................     (7,777,778)      (81,818,181)
Decrease in overhead fee payable .......................    (23,852,664)       (4,000,000)
                                                           ------------      ------------
Net cash used in financing activities ..................    (31,630,442)      (85,818,181)
                                                           ------------      ------------
Net decrease in cash ...................................       (299,728)         (340,745)
Cash, beginning of year ................................        314,835           392,505
                                                           ------------      ------------
Cash at end of nine months .............................   $     15,107      $     51,760
                                                           ============      ============
                                                                          
</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 nine months ended
September  30,  1997 is  $13,244.  Pursuant to the  Partnership  Agreement,  the
overhead was paid on January 2, 1997.




                                      F-6
<PAGE>