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Live-Action Bratz Film in 2007

MGA ENTERTAINMENT, AVI ARAD PRODUCTIONS AND CRYSTAL SKY PICTURES ANNOUNCE NEW MOTION PICTURE BASED ON THE BILLION DOLLAR BRATZ™ TOY FRANCHISE

Live action feature film planned for 2007 theatrical release

LOS ANGELES, Calif. - May 16, 2006 - MGA Entertainment, Inc., Avi Arad Productions and Crystal Sky Pictures are teaming up to bring MGA's famous BRATZ™ dolls to the big screen.

A screenplay, tentatively entitled BRATZ, is in the process of being written with a targeted production start of late Fall 2006 in Los Angeles.

Under the deal, Crystal Sky Pictures will finance a live action feature film based on the popular BRATZ characters. MGA's Isaac Larian, Avi Arad, and Crystal Sky's Steven Paul will produce the picture, and Crystal Sky Pictures president Benedict Carver will executive produce.

BRATZ is one of the biggest-selling toy franchises in the world. Its array of spin-off products include a BRATZ magazine, an animated series on 4 KidsTV, a number of DVD titles and videogames, as well as a number one selling album on the Billboard Children's Chart and multiple lines of clothing, footwear and other accessories.

"We are very excited about working with Avi Arad and Crystal Sky Pictures to create the definitive BRATZ live action feature film," said MGA founder and CEO Isaac Larian. "They both have a good understanding of the kids' market and a real feel for the BRATZ brand."

"One of my first loves was the doll industry. BRATZ allows me to revisit the girl's business. The BRATZ attitude and character will make an exciting and inspirational live-action feature," said Avi Arad.

"BRATZ underscores Crystal Sky's strategy of delivering strong film franchises to the worldwide distribution community," said Crystal Sky chairman Steven Paul. "I am excited to be in business once again with Avi Arad, and for the first time with Isaac Larian of MGA."

MGA Entertainment, a consumer entertainment products company headquartered in Van Nuys, California manufactures innovative lines of proprietary and licensed products, including toys, games, dolls, consumer electronics, home décor, stationery and sporting goods. BRATZ, which MGA launched in June 2001, has become one of the world's leading toy lines and girls' lifestyle brands. The BRATZ brand is also noted for having won Family Fun magazine's Toy of the Year Award four years in a row. With over 400 licensees worldwide, the BRATZ brand is distributed in more than 65 countries. For more information please visit: www.mgae.com and http://www.bratz.com.

Avi Arad Productions is the personal producing outfit of Avi Arad. Arad is the producer of Spider-Man 2 and Spider-Man 3; X-Men: The Last Stand; Ghost Rider; The Hulk; Daredevil; The Punisher; Elektra; and Fantastic Four. He is the executive producer of Spider-Man; X-Men and X2: X-Men United; Blade, Blade II and Blade: Trinity. As a specialist in youth marketing, Arad invented many toys and has produced numerous animated shows.

One of the oldest independent film production, sales and financing companies in Hollywood, Crystal Sky, LLC was founded in 1977 by its chairman and CEO Steven Paul. Paul's credits include conceiving and creating the Baby Geniuses franchise. Currently in post-production for Crystal Sky Pictures and Marvel Studios is Ghost Rider, directed by Mark Steven Johnson and starring Nicolas Cage. In pre-production for Crystal Sky Pictures is Big Stan, starring Rob Schneider. Please visit http://www.crystal-sky.com.

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