Marvel Enterprises, Inc., a global character-based entertainment licensing company, announced today that it is consolidating important sub-categories of its toy licensing business with industry leader Russ Berrie and Company, Inc. for the plush and gift categories in the specialty markets. This new arrangement furthers Marvel's category management strategy, whereby Marvel seeks to enhance the potential market for its licensed products by selecting top-caliber partners who can expand the marketing and promotional support for Marvel-licensed product lines. The agreement was announced by Tim Rothwell, Marvel Enterprises' President Worldwide Consumer Media Group, and Andy Gatto, President and CEO, Russ Berrie and Company, Inc.

Pursuant to the agreement, Russ Berrie and Company, Inc. (RUSS) will now produce and market under a global, multi-year license agreement plush items and gift category products for several premiere Marvel character franchises including Spider-Man, X-Men, Fantastic Four, Thor, Iron Man, the Incredible Hulk, Captain America, Daredevil, Silver-Surfer, Namor, and Marvel's pre-school line, Spider-Man and Friends.

RUSS' initial Marvel offering will include an assortment of Spider-Man plush items as well as other gift category products. Merchandise is expected to be available in retail outlets in time for the Holiday 2004 season.

Andy Gatto commented, "We are delighted to be working with Marvel Enterprises in this new business venture. By creating an extensive line of products based on Marvel's classic characters, RUSS has a wonderful opportunity to add another dimension to the enjoyment by fans of these Super Heroes. We look forward to creating unique merchandise that will please the legion of loyal Marvel fans and at the same time drive traffic into the stores of our many retailers around the world."

"RUSS is the premiere name in the plush toy and gift industries," said Tim Rothwell. "As Marvel further establishes itself as one of the entertainment industry's marquee licensors, we are establishing long-term relationships with category leaders who can garner the most significant retail space, provide the strongest sales and marketing support and produce the highest quality, exciting product mix. RUSS is that type of partner who will be instrumental in helping us greatly expand our worldwide presence in the gift and specialty market."

RUSS will develop unique lines of plush and gift products tailored to its various channels of distribution including gift, specialty, drug and grocery stores, department stores, duty free shops, flower shops and military post exchanges.

With a library of over 4,700 proprietary characters, Marvel Enterprises, Inc. is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused in four areas: entertainment (Marvel Studios), licensing, comic book publishing and toys (Toy Biz). Marvel facilitates the creation of entertainment projects, including feature films, DVD/home video, video games and television based on its characters and also licenses its characters for use in a wide range of consumer products and services including apparel, collectibles, snack foods and promotions. Marvel's characters and plot lines are created by its comic book division, which continues to expand its leadership position in the U.S. and worldwide while also serving as an invaluable source of intellectual property.

Russ Berrie and Company, Inc., a leader in the gift industry, (and its wholly-owned subsidiaries), designs, develops and distributes more than 8,000 innovative gift products through 41,000+ specialty stores worldwide. Known for its teddy bears and other plush animals, the Company's gift line is comprised of a diverse range of everyday, seasonal and occasion-themed products from baby gifts and teen/tween accessories to a variety of home decor and lifestyle items. Founded in 1963 by the late Russ Berrie from a rented garage in New Jersey, today the $329 million dollar company operates offices, showrooms and distribution centers all over the world and trades on the NYSE under the symbol RUS.

Marvel, Spider-Man, the X-Men, Fantastic Four, Thor, Iron Man, the Incredible Hulk, Captain America, Daredevil, Silver-Surfer, Namor, Spider-Man and Friends and the distinctive likeness thereof are trademarks of Marvel Characters, Inc., and are used with permission. Copyright (C) 2004 Marvel Characters, Inc. All rights reserved. www.marvel.com.

Super Hero(es) is a co-owned registered trademark.