NEW YORK--(ENTERTAINMENT WIRE)--Jan. 8, 2001--The following is an announcement by The itsy bitsy Entertainment Company:

Ragdoll Ltd. and The itsy bitsy Entertainment Company (TibECo) announced today a settlement of its lawsuit against Soma International Limited (Soma) and Way Out Toys Inc. for the production of a line of figurine characters known as the "Bubbly Chubbies,'' which were alleged to be an infringement of the Teletubbies copyrights and trademarks. The case was originally brought in 1999 against Wal-Mart Stores, Inc. The claims against Wall-Mart Stores were settled in 1999, with Wal-Mart identifying Soma as the manufacturer, ceasing sales of the Bubbly Chubbies and destroying its remaining inventory. Soma and Way Out Toys were then added to the case, as the manufacturer and a distributor of the allegedly infringing products.

"It remains vital that manufacturers, retailers and potential partners feel secure that The itsy bitsy Entertainment Company will take whatever measures necessary to insure that the rights of a property, such as Teletubbies, remain with the creators, and that we will protect our brands when we believe they have been infringed upon in any way,'' said Kenn Viselman, Chairman of The itsy bitsy Entertainment Company. "We invest substantial sums of money in an enforcement program designed to protect our rights, and will continue to act when we believe that these rights have been infringed. Even more importantly, maintaining our control over the brands we market is the only sure way of protecting young children and caregivers.''

The company is firmly driven by its motto: To be free to learn, Children must be free to dream! The itsy bitsy Entertainment Company currently maintains offices on three continents with an eye on imminent expansion to the other four.