These deals come as post-production continues on the first project being jointly developed by Marvel and Universal - the highly-anticipated June release of The Hulk starring Eric Bana and Jennifer Connelly and directed by Ang Lee.

"With the masterful job currently being done on The Hulk, Universal Pictures has proven to us that it has the vision and creativity to bring our super heroes to the big screen in grand fashion," said Avi Arad, CEO, Marvel Studios. "Sub-Mariner and Prime are two characters that have incredible stories. Sub-Mariner will be an epic underwater tale of majestic fantasy. Prime is a complete departure from the standard super hero story. With this film we are developing what we think will be Marvel's first super hero action-comedy."

These film projects are in line with Marvel's other recent deals with such studios as Sony, New Regency, Dimension and New Line.

SUB-MARINER

Development of the feature film based on Sub-Mariner is underway. Sub-Mariner will follow the adventures of Prince Namor, a half-man/half-amphibian creature from Atlantis. A troubled rebel with a short temper, he has helped the human race and fought against it when humankind polluted his underwater kingdom with waste. As previously announced, David Self, the critically acclaimed screenwriter of Road To Perdition -- a graphic novel interpretation in its own right - is bringing Marvel's amphibious hero to the screen. Arad and Kevin Misher are producing the film, with Kevin Feige, Stan Lee, and David Self serving as executive producers. Ari Arad will take part as co-producer. The Sub-Mariner made his first appearance in Marvel Comics #1 and Motion Picture Funnies Weekly #1 in 1939, however his more modern depiction came in Marvel Comics' Fantastic Four (Vol.1) #4 in 1962.

PRIME

The creative team of Don Calame and Chris Conroy will pair up to script the tongue-in-cheek story of Prime - the tale of a teenage boy who as a result of a government-backed experiment gains the ability to transform into an adult super hero. Prime will be produced by Avi Arad and Chuck Gordon. The executive producers for the picture are Kevin Feige, Stan Lee, and Scott Rosenberg with Ari Arad co-producing.

MARVEL & UNIVERSAL'S EXTENSIVE RELATIONSHIP

These agreements further broaden an already strong relationship between Marvel and Universal. Recently, Marvel and Universal's interactive games division -- Vivendi Universal Games (VU Games) -- forged a partnership to create massive multi-player subscription-based online games. Like Sony's Everquest and Electronic Arts Ultima, the Marvel multi-player online games will enable millions of people around the world to play against one another simultaneously in a virtual, persistent universe. Additionally, VU Games will be developing next generation video games based on several Marvel franchises beginning with a line of titles inspired by The Hulk. (Please note neither of these agreements precludes Marvel from other single character interactive game deals. Currently, Marvel has next generation video game deals with other industry leaders including Activision and THQ). Marvel and Universal are also currently benefiting from their association in the theme park arena. Marvel Super Hero Island at Universal Studios Islands of Adventure in Orlando, Florida ranks as the park's most popular destination highlighted by its incredibly popular attractions, The Amazing Adventures of Spider-Man, The Incredible Hulk Coaster and Doctor Doom's Fearfall.

ABOUT MARVEL ENTERPRISES

With a library of over 4,700 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 divisions: entertainment (Marvel Studios), licensing, toys (Toy Biz) and comic book publishing. Marvel facilitates the creation of entertainment projects, including feature films, television and DVD/home video, based on its characters and also licenses its characters for use in a wide range of consumer products and services including video and computer games, apparel, collectibles, snack foods and promotions. Marvel's characters are created by its comic book division which continues to maintain a leadership position in the U.S. and worldwide while also serving as an invaluable source of intellectual property. For additional information visit the Marvel Web site at http://www.marvel.com.