Marvel Consolidates Apparel Licensing Business with Leading Partners K

Marvel Consolidates Apparel Licensing Business with Leading Partners Kids Headquarters and Mad Engine

    Business Editors/Entertainment Editors

    NEW YORK--(BUSINESS WIRE)--Jan. 26, 2005--

Consolidation Strategy Designed to Maximize Revenue Opportunities for Marvel, Partners and Retailers
    Marvel Enterprises, Inc., (NYSE: MVL) a global character-based entertainment licensing company, announced today that it is consolidating its important apparel licensing business with leading partners Kids Headquarters, as master apparel licensee, and Mad Engine, which will spearhead t-shirts and tops. This announcement signifies a brand new partnership with Kids Headquarters and an expanded relationship with Mad Engine. These new arrangements further Marvel's category management strategy, whereby Marvel seeks to enhance the potential market for its licensed products by consolidating key licensing categories with top-caliber partners who can provide extensive marketing and promotional support for Marvel-licensed product lines, resulting in higher returns for all parties. The announcement was made by Tim Rothwell, Marvel Enterprises' President Worldwide Consumer Media Group.
    Pursuant to the new, multi-year license agreements, Kids Headquarters has been awarded the rights to produce and market all kids and adult apparel for several premier Marvel character franchises, including Spider-Man, X-Men, Fantastic Four, Iron Man, the Incredible Hulk, Captain America, Marvel Heroes, Marvel's pre-school line, Spider-Man and Friends and Marvel's infant brand, Marvel Babies. Their initial product assortment will include Boys/Girls (0-20) sets, separates, swimwear, T-Shirts, layettes/boxed sets and outerwear. Kids Headquarters will also work with Marvel to identify and develop key strategic initiatives that will help grow revenue and brand awareness in the apparel category.
    Mad Engine has been awarded the rights to produce and market 0-20/S-XXXL T-Shirts and related knit tops as well as hooded, crewneck, zipper fleece, garage, pique and jersey shirts for Spider-Man, X-Men, Fantastic Four, Iron Man, the Incredible Hulk, Captain America, Elektra, Daredevil and Ghost Rider.
    "We are excited to commence a brand new partnership with Kids Headquarters and expand our relationship with Mad Engine to help broaden Marvel's impact in the significant apparel category," said Mr. Rothwell. "Consolidating license categories with industry leaders will enable the Marvel brand to garner the most significant retail space, receive the strongest sales and marketing support and increase the distribution of our products, making Marvel a key franchise for our licensees."

    About Marvel Enterprises

    With a library of over 5,000 proprietary characters, Marvel Enterprises, Inc. (NYSE: MVL), is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused in four areas: entertainment (Marvel Studios), licensing, publishing and toys (Toy Biz). Marvel facilitates the creation of entertainment projects, including feature films, DVD/home video, video games and television based on its characters and also licenses its characters for use in a wide range of consumer products and services including apparel, toys, collectibles, snack foods and promotions. Marvel's characters and plot lines are created by its publishing division which continues to expand its leadership position in the U.S. and worldwide while also serving as an invaluable source of intellectual property.

    Except for any historical information that they contain, the statements in this news release regarding Marvel's plans are forward-looking statements that are subject to certain risks and uncertainties, including a decrease in the level of media exposure or popularity of Marvel's characters, financial difficulties of Marvel's major licensees, delays and cancellations of movies and television productions based on Marvel characters, poor performance of major movies based on Marvel characters, toy-production delays or shortfalls, continued concentration of toy retailers, toy inventory risk, significant appreciation of Chinese currency against other currencies and the imposition of quotas or tariffs on products manufactured in China. These and other risks and uncertainties are described in Marvel's filings with the Securities and Exchange Commission, including Marvel's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Marvel assumes no obligation to publicly update or revise any forward-looking statements.

    Marvel, Spider-Man, X-Men, Fantastic Four, Iron Man, the Incredible Hulk, Captain America, Elektra, Daredevil, Ghost Rider, Marvel Heroes, Spider-Man and Friends and Marvel Babies and the distinctive likeness thereof are trademarks of Marvel Characters, Inc., and are use with permission. Copyright (C) 2004 Marvel Characters, Inc. All rights reserved. www.marvel.com

    Super Hero(es) is a co-owned registered trademark

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CONTACT: Dan Klores Communications Jeffrey Klein, 212-685-4300 jeff_klein@dkcnews.com or Karen Silberg, 212-685-4300 karen_silberg@dkcnews.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: PUBLISHING TELEVISION/RADIO CABLE MOTION PICTURES ENTERTAINMENT PRODUCT MARKETING AGREEMENTS SOURCE: Marvel Enterprises, Inc.

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