Marvel Announces Feature Film Release Slate: Iron Man Sequel and Thor in Summer 2010 and Two Avenger-themed Movies in Summer 2011

NEW YORK -- May 5, 2008 -- Marvel Entertainment, Inc. (NYSE: MVL), a global character-based entertainment and licensing company, today reported operating results for its first quarter ended March 31, 2008. Marvel also announced the opening weekend box office performance of its debut Iron Man feature film, and unveiled its self-produced feature film slate through 2011. Iron Man debuted this weekend, generating an estimated domestic box office of $100.75 million for the three-day weekend. This performance represents the 10th best opening weekend ever and the 2nd best non-sequel feature film debut ever - second only to Spider-Man, also a Marvel character. On a worldwide basis, Iron Man has generated an estimated $201 million in global box office to date. In keeping with the Company's increasing focus on entertainment and licensing opportunities, Marvel also announced it has substantially completed its exit from direct toy operations and consequently will no longer report the results of its remaining toy business as a separate reportable segment effective with Q1 2008.

Income from Marvel's licensee Hasbro previously reported in the Toy segment is now recorded within the Licensing segment. Marvel's remaining in-licensed toy lines are now aggregated with corporate overhead in "All Other." Q1 2007 segment information has been restated accordingly.

Reflecting contributions in the year-ago first quarter related to the coming release of Spider-Man III, Marvel reported Q1 2008 net sales of $112.6 million and net income of $45.2 million, or $0.58 per diluted share, compared to net sales of $151.4 million and net income of $46.8 million, or $0.54 per diluted share, in Q1 2007.

Feature Film Slate Update:

Marvel today updated its feature film slate strategy and plans for the next three years, locking in key release windows for its character franchises. In order to focus its attention on maximizing the success of an Iron Man sequel and the launch of Thor in the summer of 2010 and because Marvel believes that the summer is the optimal time to launch a new property, the Company will not release a self produced film in 2009. Marvel plans to launch its 2010 film slate with the release of the sequel, Iron Man 2, on April 30, 2010, followed by the launch of Thor on June 4, 2010. Additionally, Marvel is planting its feature film stakes for summer 2011 with an Avengers-themed summer – a two-picture project which will debut on May 6, 2011 with The First Avenger: Captain America (working title), followed by The Avengers in July 2011.

Marvel's Chairman, Morton Handel, commented, "Adjusting for the strong year-ago contribution from the Spider-Man JV, Marvel's Q1 2008 operating results continued to demonstrate strong global demand for consumer products based on the Company's portfolio of characters. Marvel's self-produced feature film slate launched this past weekend with a performance that firmly establishes Iron Man as a major new film franchise, and the Company eagerly awaits the June premiere of The Incredible Hulk, Marvel's second self-produced film. In addition, Marvel has been investing in other important areas of growth such as the Internet where, to lead the Company's newly formed Global Digital Media Group, Marvel recently announced the hiring of Ira Rubenstein. Marvel has a strong foundation to build from, and the Company is adding infrastructure to maximize these opportunities."

First Quarter Segment Review:

Marvel is now reporting the net sales and operating contribution from its license agreement with Hasbro within the Licensing segment. Net sales in the Licensing Segment decreased in Q1 2008 principally reflecting a decline in net sales from the Spider-Man merchandising joint venture (JV) with Sony and a decrease in income from Hasbro to $8.3 million, compared to income from Hasbro of $20.8 million in Q1 2007.

Net sales for the Spider-Man JV declined to $29.7 million in Q1 2008, versus $56.9 million in Q1 2007. The year-over-year decline in JV net sales was anticipated, as the high level of net sales in Q1 2007 was triggered by "on shelf dates" related to the May 2007 release of Spider-Man III. This decline was offset in part by increases in domestic and international consumer products licensing, as well as from a higher level of license revenue from Marvel Studios related to the Spider-Man, X-Men and Fantastic Four movie properties. Marvel's Q1 2008 Licensing segment operating income results also reflect settlement payments from two licensees in connection with the termination of their respective interactive license agreements. The settlements totaled $19 million and were recorded as other income. Operating margin in the Licensing segment was 101% in Q1 2008, reflecting the benefit of these settlement payments included in operating income but not included in net sales. The operating margin for the Licensing segment was 83% in Q1 2007.

As noted above, income from Marvel's toy licensee Hasbro, Inc. is now reflected within Marvel's Licensing segment in Domestic and International Consumer Products. The year-ago period has been restated to reflect this treatment. In prior periods, income from Hasbro had been recorded within the separately reported Toy segment.

Marvel's Publishing Segment net sales declined by $1.0 million or 4% to $26.5 million in Q1 2008 principally due to the timing of major publishing initiatives. Q1 2008 net sales reflected a decline in comic book sales within the direct channel and lower advertising and custom sales, offset in part by continued strong growth in the Mass Market channel. The year-over-year decline in direct channel sales principally reflects strong sales of high profile titles Civil War and The Death of Captain America in the year ago period, versus no comparable specialty titles in Q1 2008. Operating income in the Publishing segment declined by 14% on a year-over-year basis to $9.9 million in Q1 2008 with an operating margin of approximately 37% compared to approximately 42% in the prior-year-period. Based on its planned slate of publishing initiatives, including the release of the Secret Invasion series in late Q2 2008, Marvel expects its Publishing segment to return to traditional margins for the full year 2008.

Marvel's Film Production segment operating losses were $2.0 million for Q1 2008, compared to $3.0 million in Q1 2007, reflecting overhead costs that were capitalized into Marvel's self-produced films in Q1 2008. Film Production segment operating costs consist primarily of employee compensation and the expenses associated with Marvel Studios' office in California.

Among the items in All Other is Corporate overhead, which was $6.5 million in Q1 2008 and $3.6 million in Q1 2007. The difference in year over year Corporate overhead is principally attributed to a one time credit in Q1 2007 of $1.9 million associated with pension accounting. All Other also includes the results of in-licensed toy lines: for Q1 2008, net sales of $1.5 million and operating income of $0.7 million; for Q1 2007, net sales of $4.2 million and an operating loss of $2.6 million.

Balance Sheet And Share Repurchase Update:

As of March 31, 2008, Marvel had cash and investments of $150.6 million (including $23.2 million in restricted cash) with no outstanding borrowings under its $100 million line of credit with HSBC Bank. In Q1 2008, Marvel purchased approximately 414,000 shares of its common stock, at an average price of $24.01, for total consideration of $9.9 million. The Company has approximately $128 million remaining under its share repurchase authorizations, including its $100 million February 2008 authorization.

Marvel Studios Entertainment Pipeline

  (Development and release dates for licensed properties are controlled by studio partners)
  
  Feature Film Projects Being Developed by Marvel – partial list
  Film/Character 	  	Studio 	  	Status
  Iron Man 	  	Marvel 	  	Released May 2, 2008
  The Incredible Hulk 	  	Marvel 	  	Scheduled for June 13, 2008 release
  Iron Man 2 	  	Marvel 	  	Scheduled for April 30, 2010 release
  Thor 	  	Marvel 	  	Scheduled for June 4, 2010 release
  The First Avenger: Captain America (working title) 	  	Marvel 	  	Scheduled for May 6, 2011 release
  The Avengers 	  	Marvel 	  	Scheduled for July 2011 release
  Ant-Man 	  	Marvel 	  	Writer/director engaged
  
  Licensed Marvel Character Feature Film Line-Up
  Film/Character 	  	Studio/Distributor 	  	Status
  Punisher: War Zone 	  	Lionsgate 	  	Scheduled for December 5, 2008 release
  X-Men Origins: Wolverine 	  	Fox 	  	Scheduled for May 1, 2009 release
  
  Marvel Character Animated TV Projects
  Character 	  	Studio 	  	Status
  Fantastic Four: World's Greatest Heroes 	  	Moonscoop SAS (France) 	  	26, 30-minute episodes airing internationally.
  Spectacular Spider-Man 	  	Sony 	  	Currently airing on Kids' WB
  Wolverine and the X-Men 	  	First Serve Toonz (India) 	  	26, 30-minute episodes in development; scheduled for Spring 2009 release on Nicktoons.
  Iron Man: Armored Adventures 	  	Method Films (France) 	  	26, 30-minute episodes in development; scheduled for Spring 2009 release on Nicktoons.
  Hulk Gamma Corps 	  	TBD 	  	In development; scheduled for Spring 2009 release.
  Super Hero Squad 	  	TBD 	  	In development; scheduled for Spring 2009 release.
  
  Marvel Character Animated Direct-to-DVD Projects
  Title 	  	Partner 	  	Status
  Next Avengers: Heroes of Tomorrow 	  	Lionsgate 	  	Scheduled for Late-2008 release.
  Hulk Vs. 	  	Lionsgate 	  	Scheduled for Early-2009 release.
  Thor: Son of Asgard 	  	Lionsgate 	  	Scheduled for Late-2009 release.
  Planet Hulk 	  	Lionsgate 	  	Scheduled for Early 2010 release.
  
  Marvel Character Live Stage Projects
  Project 	  	Producers 	  	Status
  Spider-Man, the Musical 	  	
  
  Hello Entertainment/David Garfinkle, Martin McCallum, Marvel Entertainment, SONY Pictures Entertainment
  	  	In development/opening date to be determined; Julie Taymor director; music & lyrics by U2's Bono and The Edge
  
  Marvel 2008 Video Game Releases (Release dates controlled by Publishing partner)
  Publisher 	  	Title 	  	Status
  Sega 	  	Iron Man 	  	Released, Friday, May 2, 2008.
  Sega 	  	The Incredible Hulk 	  	Scheduled for release Tuesday, June 3, 2008.
  Activision 	  	Spider-Man: Web of Shadows 	  	Scheduled for release Fall 2008.

Exit from Toy Operations

In Q1 2008, Marvel substantially completed its exit from direct toy operations that were primarily focused on the in-licensed Curious George toy line and consequently will no longer report "Toys" as a separate reportable segment. Marvel is now reporting the net sales and operating contribution from its license agreement with Hasbro within the Licensing segment. Marvel has assigned the Curious George license to a division of Jakks Pacific but has retained the minimum guarantee obligation associated with this license, which remains fully accrued as of March 31, 2008. Revenues and operating income contribution from the remaining sale of toys are now aggregated within the category "All Other" which also includes Corporate overhead.

Primary Assumptions/Drivers for Full Year 2008 Financial Guidance:

Marvel's Licensing segment is expected to contribute net sales of approximately $240M - $265M in 2008 and to generate an operating margin of approximately 65% -75%. Marvel expects that full year-2008 Licensing segment net sales (now including income from Hasbro) will have the following approximate mix:

• 49% from Domestic Consumer Products, including income from Hasbro.
• 31% from International Consumer Products, including income from Hasbro.
• 13% from Spider-Man L.P.
• 7% from Marvel Studios (excludes revenues related to Marvel's self-produced feature films)

Marvel's Publishing segment is expected to contribute net sales of approximately $130M – 135M in 2008 and to generate an operating margin of approximately 41% - 43%.

Reflecting corporate overhead and anticipated contributions from in-licensed toy lines, Marvel expects to report net sales of approximately $1.5M – $2.5M in 2008 in the "All Other" category. Those sales are anticipated to generate a breakeven operating margin. Traditional corporate overhead, excluding toy contributions, is expected to approximate $26.0 million in 2008 compared to $22.4 million in 2007, reflecting increasing levels of personnel and other expenses.

Marvel anticipates an effective tax rate of 39% in 2008.

Marvel's guidance is based on 78.2 million diluted shares for 2008 and does not reflect any future share repurchase activity.

Marvel cautions investors that variations in the timing of licenses and entertainment events, the timing of their revenue recognition, and their level of success result in variations and uncertainty in forecasting the Company's financial results. These factors could have a material impact on year-over-year annual and sequential quarterly results comparisons as well as on Marvel's ability to achieve its financial guidance.

About Marvel Entertainment, Inc.

With a library of over 5,000 high-profile characters built over more than sixty years of comic book publishing, Marvel Entertainment, Inc. is one of the world's most prominent character-based entertainment companies. Marvel utilizes its character franchises in licensing, entertainment (via Marvel Studios), and publishing (via Marvel Comics), with emphasis on feature films, home DVD, consumer products, video games, action figures and role-playing toys, television and promotions. Marvel's strategy is to leverage its franchises in a growing array of opportunities around the world. For more information visit www.marvel.com.