The announcement was made jointly by Matt Bousquette, president of the Boys/Entertainment division at Mattel, and Al Kahn, chairman and CEO of 4Kids Entertainment.

The master toy license grants exclusive manufacturing and marketing rights for action figures and accessories, board games, puzzles, vehicles, playsets, activity sets, role-playing products, youth electronics and ViewMaster products. The first "YU-GI-OH!" product line will be available in 2002.

"4Kids Entertainment has an impressive history of bringing Japanese pop-culture trends to the U.S. and turning them into established franchises," said Bousquette. "As partners with 4Kids Entertainment, we are committed to developing a long-term global brand that brings the 'YU-GI-OH!' characters to life in creative and innovative ways for kids," said Bousquette.

"We are very pleased to announce this partnership with Mattel, well known around the world for being the pre-eminent marketer and producer of kids toys. 'YU-GI-OH!' has already proven itself to be a strong property in Japan, and we know that Mattel will create and bring to the retail market quality 'YU-GI-OH!' products in 2002," said Kahn.

'YU-GI-OH!' made its debut on the Kids' WB!'s Saturday morning schedule Sept. 29, leading as the No. 1-rated broadcast program in its 11:30 a.m. ET/10:30 a.m. PT period -- and has achieved significant growth over last year's time period programming. Season-to-date, 'YU-GI-OH!' ranks among the top 10 broadcast programs in the key demographics -- Kids 2-11, Kids 6-11, Boys 2-11 and Boys 6-11.

'YU-GI-OH!'' is based on a comic book series that follows the adventures of Yugi, a high school student. Yugi's grandfather gives him an ancient Egyptian artifact called the "Millennium Puzzle," and when Yugi pieces the puzzle together, he unexpectedly receives a powerful alter ego, and becomes the "Game King." Every week, Yugi battles opponents with virtual reality monster rivals, and the "Game King" takes over to protect him and his friends.

About 4Kids Entertainment Inc.

With headquarters in New York City and international offices in London, 4Kids Entertainment is a global provider of children's entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries, provides domestic and international merchandise licensing and product development, television, film, music and home video production and distribution, media buying and planning and Web site development. For further information, visit the company's Web site at http://www.4kidsent.com.

About Mattel's Boys/Entertainment Division

The Boys and Entertainment division at Mattel boasts a portfolio of global brands that includes some of the most popular powerhouse products in the toy industry. The division is composed of three major businesses: Wheels, Entertainment licensed toys and Games. Mattel Inc. is a worldwide leader in the design, manufacture and marketing of family products. With headquarters in El Segundo, Mattel has offices and facilities in 36 countries and sells its products in more than 150 nations around the world.

This news release contains forward-looking statements. Due to the fact that the company faces competition from toy companies, motion picture studios and other licensing companies, and the uncertainty of public response to the company's properties, actual results or outcomes may differ materially from any such forward-looking statements.