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 7




                                      F-1
<PAGE>



DEAR LIMITED PARTNER:

     The 1997 first quarter cash distribution totals $7 million,  bringing total
distributions since the Partnership's inception in 1988 to $585 million.

     First quarter revenue was generated  principally  from a Revenue  Shortfall
Payment  from  Buena  Vista  for  "Blame It on the  Bellboy."  This is the final
Revenue Shortfall Payment the Partnership is due to receive.  In addition,  "The
Little  Mermaid" and "Beauty and the Beast"  produced  Partnership  revenue this
quarter from sales of film-related merchandise.

     Partnership  revenue in the future is expected to be generated  from the 33
films in the portfolio as they  continue to travel  through the U.S. and foreign
television  markets and from the Disney  buyout of the Silver  Screen  IV-Disney
Joint  Venture.  As  always,  distributions  depend  on the  amount  of  revenue
generated each quarter.  There may be quarters when revenue is  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 an additional  $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 Second  Quarter  Report will be mailed to you 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,
                                                       1997             1996
                                                   ------------     ------------

ASSETS
Current Assets:
Cash ...........................................    $    269,129    $    314,835
Temporary investments (at cost, plus accrued
  interest, which approximates market) .........       8,220,620      25,794,708
                                                    ------------    ------------
Total current assets ...........................       8,489,749      26,109,543
Investment in Joint Venture ....................      72,849,037      74,211,904
                                                    ------------    ------------
                                                    $ 81,338,786    $100,321,447
                                                    ============    ============
LIABILITIES AND PARTNERS' EQUITY
Current liabilities:
Due to managing general partner ................    $     46,676    $      4,960
Accrued unincorporated business tax ............         153,419         153,419
Overhead fees payable ..........................            --        23,839,420
                                                    ------------    ------------
Total liabilities ..............................         200,095      23,997,799
                                                    ------------    ------------
Partners' equity:
General partners ...............................            --              --
Limited partners ...............................      81,138,691      76,323,648
                                                    ------------    ------------
Total partners' equity .........................      81,138,691      76,323,648
                                                    ------------    ------------
                                                    $ 81,338,786    $100,321,447
                                                    ============    ============


                       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,
                                                         1997           1996
                                                      -----------    -----------

REVENUES:
Income from Joint Venture ......................     $ 4,903,755     $16,971,450
Interest income ................................          82,665         568,369
                                                     -----------     -----------
                                                       4,986,420      17,539,819
COSTS AND EXPENSES:
General and administrative expenses ............         171,377         990,317
                                                     -----------     -----------
Net income .....................................     $ 4,815,043     $16,549,502
                                                     ===========     ===========
NET INCOME ALLOCATED TO:
General partners ...............................     $   481,504     $   165,495
Limited partners ...............................       4,333,539      16,384,007
                                                     -----------     -----------
                                                     $ 4,815,043     $16,549,502
                                                     ===========     ===========
Net income per a $500 limited partnership
  unit (based on 800,000 units outstanding) ....     $      5.42     $     20.48
                                                     ===========     ===========


                       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, 1996
                      and Three Months Ended March 31, 1997
<TABLE>
<CAPTION>
                                                      General          Limited
                                                      Partners         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, three months 1997 .................         481,504        4,333,539        4,815,043
Distributions during three months 1997.........            --               --               --
Allocation under Treasury Regulation           
   Section 1.704-1(b) .........................        (481,504)         481,504             --
                                                    -----------    -------------    -------------
                                                    $      --      $  81,138,691    $  81,138,691
                                                    ===========    =============    =============
</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, 1997   March 31, 1996
                                                  ------------     ------------


CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .....................................   $  4,815,043    $ 16,549,502
Adjustments to reconcile net income
  to net cash provided by operating
  activities:
Decrease (increase) in accrued
   interest receivable .........................        136,621         (43,340)
Charge on overhead fee payable .................         13,244         564,552
Net change in operating assets
   and liabilities:
Increase in due to managing general partner ....         41,716          66,623
                                                   ------------    ------------
Net cash provided by operating activities ......      5,006,624      17,137,337
                                                   ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in investment in Joint Venture ........      1,362,866       4,716,757
Sale (purchase) of temporary investments, net ..     17,437,468      (6,079,353)
                                                   ------------    ------------
Net cash provided by (used in)
  investing activities .........................     18,800,334      (1,362,596)
                                                   ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners ......................           --       (12,121,212)
Decrease in overhead fee payable ...............    (23,852,664)     (4,000,000)
                                                   ------------    ------------
Net cash used in financing activities ..........    (23,852,664)    (16,121,212)
                                                   ------------    ------------
Net decrease in cash ...........................        (45,706)       (346,471)
Cash, beginning of year ........................        314,835         392,505
                                                   ------------    ------------
Cash at end of three months ....................   $    269,129    $     46,034
                                                   ============    ============


                       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
that actual cash received bears to ultimate revenues expended.

The investment in the Joint Venture was accounted for using the equity method of
accounting.  Under the equity method,  the investment was initially  recorded at
cost, and was thereafter  increased by additional  investments,  adjusted by the
Partnership's  share of the Joint Venture's results of operations and reduced by
distributions  received from the Joint Venture.  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 its  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 three
months ended March 31, 1997 is $13,244.  Pursuant to the Partnership  Agreement,
the overhead was paid on January 2, 1997.
               


                                      F-6
<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
<PAGE>