Equity Marketing will design and produce a full line of branded plush, figures and toy novelties for distribution to mass and specialty markets. The first products developed under this agreement will be available in both domestic and international markets starting Fall 2003.

Jim Henson's Bear in the Big Blue House, which first premiered in October 1997, is now in its fourth season airing daily on Disney Channel's Playhouse Disney preschool block. Internationally, Bear in the Big Blue House can be seen in over 70 territories worldwide. In addition, the entire cast from the show is currently touring the US in BEAR IN THE BIG BLUE HOUSE LIVE!, a national stage show produced by VEE Entertainment Corporation.

"We are excited to partner with a premiere licensor on a time-tested entertainment property that is growing in popularity," said Mark Siegel, Vice President of Marketing and Business Development for Equity Marketing. "We specialize in developing imaginative plush items, and Jim Henson's Bear in the Big Blue House features a number of memorable characters that will lend themselves well to our creative abilities. This established property is an excellent complement to our classic Scooby-Doo(TM), Crayola® and Pink Panther(TM) brands, as well as our new Kim Possible(TM) license, and provides another strong vehicle for tapping into the kids, tweens, teens and families (KTTF) market where we've had our greatest success."

"Equity Marketing is innovative in their approach to managing classic brands and they are the ideal partner for an evergreen property like Jim Henson's Bear in the Big Blue House," said Isabel Miller, Executive Vice President Consumer Products Worldwide for The Jim Henson Company.

"Equity's impressive experience in plush and proven ability to develop products with a strong appeal to preschoolers will make them a valuable partner in continuing this great pre-school brand," commented Betts FitzGerald, Senior Vice President, Licensing for The Jim Henson Company.

Jim Henson's Bear in the Big Blue House features the world-famous seven-foot-tall Bear who loves to Cha Cha Cha, and all of his friends from Woodland Valley including Tutter (the industrious mouse), Treelo (the curious lemur), Pip & Pop (playful twin otters), Ojo (the young little girl cub), and Luna (the moon). Everyday, Bear speaks directly to his young audience and invites them into his home to play, learn, dance and sing with his friends. Filled with civility and concern, children connect with Bear because he is playful, funny and has a comforting nature, while adults recognize him as a positive role model.

The Jim Henson Company, an established leader in family entertainment for more than 45 years, is a multimedia production company; one of the top character licensors in the industry; a leading publisher of children's books and home to Jim Henson Television, Jim Henson Pictures, Jim Henson Interactive, Jim Henson Home Entertainment and Jim Henson's Creature Shop. The Company is headquartered in Los Angeles with offices and production facilities in New York and London. The Jim Henson Company is a wholly owned subsidiary of EM.TV & Merchandising AG based in Munich, Germany. The Jim Henson website is located at: www.henson.com.

Equity Marketing, Inc. is a leading global marketing services company based in Los Angeles, with offices in Chicago, New York, London, Paris and Hong Kong. The Company focuses on the design and execution of strategy-based marketing programs, with particular expertise in the areas of: strategic planning and research, entertainment marketing, design and manufacturing of custom promotional products, promotion, event marketing, collaborative marketing, and environmental marketing. The Company's clients include Burger King Corporation, The Coca-Cola Company, CVS/pharmacy, Kellogg's, Morgan Stanley, Procter & Gamble and J.E. Seagram & Sons, among others. The Company complements its core promotions business by developing and marketing distinctive consumer products, based on trademarks it owns or classic licensed properties, which are sold through specialty and mass-market retailers. More information about Equity Marketing is available on the Company's web site at www.equity-marketing.com.

Note: All trademarks and registered trademarks are property of their respective owners.

Certain expectations and projections regarding the future performance of Equity Marketing, Inc. discussed in this news release are forward-looking and are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These expectations and projections are based on currently available competitive, financial and economic data along with the Company's operating plans and are subject to future events and uncertainties. Management cautions the reader that the following factors, among others, could cause the Company's results of operations to differ significantly from those expressed in forward-looking statements: the Company's ability to increase the distribution outlets for its products; the market's response to new product introductions; and the financial impact of licensing agreements and new product introductions. The Company undertakes no obligation to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks highlighted herein should not be assumed to be the only items that could affect the future performance of the Company.