MGA Entertainment's Statement to Ninth Circuit Court of Appeals Ruling Today Regarding Bratz Brand

VAN NUYS, Calif., July 22, 2010 -- The Ninth Circuit Court of Appeals confirmed today that MGA is the owner of Bratz - not Mattel. MGA is deeply grateful to the Court for confirming, in the words of founder Isaac Larian, "that the American dream lives." Chief Judge Alex Kozinski, speaking on behalf of a unanimous panel including Kim M. Wardlaw and Stephen S. Trott for the Ninth Circuit, endorsed all of the arguments that MGA has been advancing throughout the litigation, and found that "it is not equitable to transfer this billion dollar brand � the value of which is overwhelmingly the result of MGA's legitimate efforts �" to Mattel.

In handing MGA a sweeping victory with its twenty-four page opinion, the Court upheld the rule of law, finding that "because several of the errors we have identified appeared in the jury instructions, it's likely that a significant portion � if not all � of the jury verdict and damage award should be vacated." "Unlike the relatively demure Barbie, the urban, multi-ethnic and trendy Bratz dolls have attitude," Chief Judge Kozinski wrote. The Ninth Circuit concluded by noting that "America thrives on competition; Barbie, the all-American girl, will too."

MGA agrees with that sentiment. Mr. Larian went on to say, "We look forward to bringing that competition with the re-launch of a stunning new line of Bratz products, along with Moxie Girlz, Moxie Teenz, Bitty Buttons and BFC, Ink to store shelves in August.

"I would also like to add that I am grateful and thankful to all the employees of MGA and their families who stood by me and my family during this ordeal, as well as to our extraordinary team of lawyers from Orrick, Herrington & Sutcliffe and Skadden, Arps, Slate, Meagher & Flom, who fought so hard to restore belief in the American justice system and the priceless value of the American dream. To that I must also add my gratitude to the retailers and all of our suppliers. I thank you all."