DIC Entertainment

DIC ENTERTAINMENT BOASTS SLATE OF HOT PROPERTIES - Strawberry Shortcake, Knights of the Zodiac keep DIC on top.

BURBANK, Calif., June 10, 2003 - DIC Entertainment (DIC), the leading independent producer of children's and family content, continues to dominate the marketplace with tiffany properties including Strawberry Shortcake - a revival of the classic character for little girls and Knights of the Zodiac, an internationally acclaimed animation property.

DIC's vast library and copyrights have positioned the company as the largest independent catalogue of children's properties. With more than 3,000 half-hours of programming, much of it educational and all of it fun, DIC has both the content and franchises to remain competitive.

Recently DIC, in conjunction with American Greetings, re-launched Strawberry Shortcake. Giving her a "berry" fresh new look was part of DIC's initial plan, which was unveiled on a float at the Rose Bowl Parade in January of 2003. Thus far, Strawberry Shortcake has been flying off retailers' shelves. Projections indicate that Strawberry Shortcake will generate more than $175 million dollars in her first year sales and plans are in the works to launch her internationally.

"There are 45 licensees -- either in-market experiencing double-digit sell-though ratios, or in development for the big fourth quarter push," said Nancy Bassett, senior vice president, worldwide consumer products, DIC Entertainment. "We've been careful not to over saturate the market during this critical launch year and are only signing additional licensees for 2004 who offer innovative and appropriate extensions to the program. Our focus has now shifted to broadening our domestic marketing and retail initiatives as we plan our international launches in Mexico this Christmas and in Europe early next year."

A further indicator that Strawberry Shortcake is poised to repeat her success is the recent selection of the brand by a respected toy industry publication as one of the top toys for the season. Toy Wishes, a journal that predicts trends within the toy industry, selected Bandai America's Strawberry Shortcake line for the coveted "Hot Dozen" (Spring/Summer issue). The publication also included the scented-toy phenomenon on both the "Top 10 Toys for Girls" and "Top 10 Travel Toys" lists. Strawberry Shortcake's contemporary look debuted at the beginning of the year as master toy licensee Bandai America Incorporated introduced its spring line filled with scented dolls of all sizes, collectible miniatures, plush and other toys.

"We're thrilled by the fan frenzy that is surrounding Strawberry Shortcake as our new line of scented dolls and toys are flying off retailer shelves across the country," said Bill Beebe, senior vice president, sales and marketing, Bandai America Inc. "Young girls who are new to the property as well as the moms who grew up with Strawberry Shortcake just can't get enough of our dolls and toys, and we're extremely excited to be growing our lineup for future collections with new characters, pets and a variety of other items to meet that demand."

Twentieth Century Fox Home Entertainment also released two DIC-produced Strawberry Shortcake movies in March on VHS and DVD, "Meet Strawberry Shortcake" and "Spring for Strawberry Shortcake," which debuted at number one and two on the DVD/VHS Best Selling Children's Chart according to Nielsen Videoscan. The videos have already exceeded projections, having sold one million units to date, with an elevated number of re-orders.

"We are thrilled with the results so far," said Todd Rowan, vice president of marketing, Twentieth Century Fox Home Entertainment. "Not only have our retail partners gotten behind the property, but consumers have also responded big time. Sell-through numbers are very strong which paves the way for our next two titles coming out this fall."

Strawberry Shortcake currently has merchandise in the marketplace, with new product rolling out every month-from new dolls and books to PC games, children's apparel and furniture. Two new home video titles, "Get Well Adventure" and "Berry Merry Christmas," will be released on DVD/VHS from Twentieth Century Fox Home Entertainment in the fall. The Strawberry Shortcake Web site had 35 million hits in its first six weeks and the "Strawberry Shortcake Friendship Club" has 50,000 members. In addition, DIC has plans to continue to support the re-launch of the brand with national promotions, print and television advertising, meet-and-greet events, and a live-action mall tour that will kick-off this summer.

In addition to Strawberry Shortcake, DIC is launching in the United States, one of the all time boys toy success stories from Japan, Knights of the Zodiac. DIC, in partnership with General Mills, has announced plans to bring Knights of the Zodiac, the legendary Japanese property formerly known as Saint Seiya, to the U.S. Cartoon Network who will be airing 40 episodes of the show beginning in August. Bandai America has been awarded the master toy license for the U.S. and Canada, and ADV has distribution rights for home video.

"Knights of the Zodiac is among the three biggest hits ever to have come out of Japan-Power Rangers and Pokemon being the other two," said Andy Heyward, CEO and chairman, DIC Entertainment. "The international success indicates that Knights of the Zodiac is nothing short of phenomenal. Furthermore, there has never been a Japanese series that has been a mega-hit in Asia, Europe and South America as has Knights of the Zodiac that has failed to become a mega-hit in the U.S. We have every expectation that its seductive and hypnotic story line will generate the same amazing results here."

Bandai will manufacture action figures, collectible card games, playsets, model kits and video games based on the Knights of the Zodiac tales that follow the adventures of the Bronze Knight Seiya, who leads his team to defeat the evil Black Knight Phoenix. Bandai product is slated to hit retail shelves in January 2004 with the rest of its line rolling out in spring and fall of 2004.

Timed to coincide with the comprehensive merchandising launch ADV, the leading distributor of anime content, has signed on to distribute 40 episodes of Knights of the Zodiac. The first release is scheduled to street in first quarter 2004.

About Knights of the Zodiac

Knights of the Zodiac is a fast-paced, futuristic action-adventure series which pits the forces of good against evil as the Knights of Athena battle the Knights of Aries for control of the sacred Golden Armor of Sagittarius and the world.

About Strawberry Shortcake

Almost 20 years after the initial retail phenomenon, the classic girls' property has been re-introduced in the States with direct-to-video/DVD movies and a comprehensive licensing and merchandising roll-out at retail. The Strawberry Shortcake stories follow the good-hearted and lovable adventures of Strawberry Shortcake and her friends who live together in the magical world of Strawberryland. With darling and mischievous characters like her sister Apple Dumplin', her friends Huckleberry Pie, Ginger Snap, Orange Blossom, Angel Cake, and her pets Honey Pie Pony, Custard and Pupcake, Strawberry Shortcake finds herself exploring magical lands while learning valuable lessons. For more information, visit www.StrawberryShortcake.com.

About DIC Entertainment

DIC Entertainment is a leading children's entertainment company with more than 3,000 half-hours of programming in its prolific library, ranked as the largest independent library of animation. DIC has also amassed an incomparable family of domestic and international broadcasters who air DIC programming in Europe, Asia, Latin America, Africa and Australia. Some of DIC's popular properties include "Sailor Moon™," and such new shows as "Strawberry Shortcake™," "Super Duper Sumos™," "Madeline™" "Liberty's Kids™," and "Sabrina's Secret Life™." More than 25 million children watch DIC's popular programs each week. DIC is a full service studio with production, development, distribution, home video, marketing and licensing departments.