United Internet Technologies Terminates License Agreement With Marx Toys

LOS ANGELES, Aug. 18, 2003 -- United Internet Technologies, Inc. (UIT) a division of United Leisure Corp. (Other OTC:UTDL) today announced that it has terminated an agreement whereby Marx Toys and Entertainment, Inc. (OTCBB:MRXT) was to market certain interactive toys using UIT's patented technologies. Marx was notified verbally and in writing that the agreement was terminated as of July 31, 2003. Despite this clear notification, Marx management has continued to release information to the press and others regarding their rights to market "IM Buddies".

Marx, as recently as yesterday, began "selling" IM Buddies on their website claiming that they are "in stock". Legal action has commenced to prevent continued false claims and practices on the part of Marx management.

About United Leisure Corp.

United Leisure Corporation, through its subsidiary United Internet Technologies, develops technologies that allow a variety of electronic devices and consumer electronics to communicate and be controlled over the Internet and over other digital systems. The Company's technologies include intelligent control interactive technology and digitally integrated video overlay. Visit them on the web at http://www.uitlive.com.

Marx Toys And Entertainment Corp. To File An Injunction Against UIT For Breach Of Contract

SEBRING, Ohio -- Aug. 18, 2003 -- Today, Marx Toys and Entertainment Corp. (OTCBB: MRXT) will indeed file an injunction against UIT, a division of United Leisure Corporation (Pinksheets: UTDL), for breach of contract.

Based upon information and belief, it has come to our attention that UIT has attempted to enter into negotiations with a company other than MARX Toys. In the event that this negotiation is carried forward, it will infringe upon the rights of Marx.

Marx has filed an injunction to prevent UIT from entering into said negotiations which clearly violates the existing contract. Marx Toys will vigorously defend its rights to the fullest extent of the law and go after the company's rights to their patented technology, and any additional assets for potential damages to both the company and its shareholders.

Steve Wise, CEO of Marx Toys stated, "The product is real, the technology is real and the contract is real and it is a binding agreement. We hope that Marx and UIT can resolve this issue quickly so that both parties can move forward."

About Marx Toys And Entertainment Corp.

Marx Toys And Entertainment Corp. manufactures and markets interactive toys and reissued collectible toys, along with classic games, playsets and ride along toys. Marx's vintage originals are highly collectible amongst hobby enthusiasts. Marx branded toys are sold at more than 400 toy and hobby retailers across the U. S. and has a rich history dating back to 1928. To read more on this history, visit http://www.marxtoys.com. In late July, Marx acquired a software company, AZtor Corporation. More info is at http://www.aztor.com

Marx Toys And Entertainment Corp. Granted Injunctive Relief

SEBRING, Ohio -- Aug. 18, 2003 -- Today, Marx Toys And Entertainment Corp. (OTCBB: MRXT) announced that on August 14, 2003 an Order with injunctive relief was entered in the Superior Court of New Jersey (Docket No. C242-03), against United Internet Technologies (UIT), a division of United Leisure Corporation (Pinksheets: UTDL). The Order also subjects defendants Brian Shuster and Robert Lomonaco to the restraints entered by the Court.

The order provides that pending a hearing scheduled for August 25, 2003, UIT is temporarily restrained from entering into another Licensing agreement for the utilization of the IM buddies technology. Further, the Order indicates that attorney Gary Mason of Manalapan, New Jersey agreed that he would not perform any legal work involving Marx Toys. Mr. Mason had previously represented Marx Toys and then performed legal work for UIT as an adversary of Marx. (Mr. Mason did not know of UIT before performing corporate work for Marx).

By way of background, Marx entered into a Licensing Agreement with UIT on April 1, 2003, which Agreement gave Marx the exclusive right to market the IM Buddy product. Marx paid UIT an initial $75,000 in connection therewith. The Agreement calls for payments in excess of $1,000,000 over the next three years.

"In late July, it came to our attention that UIT was attempting to enter into negotiations with a company other than MARX," stated Steve Wise Marx's CEO. Thereafter, UIT indicated that the License Agreement was canceled, which cancellation was without basis, false, and is rejected by Marx in its entirety. Given UIT's conduct, Marx filed the Law Suit in Superior Court and applied for emergent relief. After a hearing, the court entered temporary injunctive relief against UIT and its principal. That Order was entered over the objection of UIT; then represented by Gary Mason.

The release issued this morning by UIT violates the purpose of the previously filed law suit and is an act of baseless defiance of its obligations under the License Agreement. Attorneys for Marx are thus seeking additional legal relief, including the appointment of a receiver for UIT so as to ensure that said company complies with its obligations under the License Agreement.

About Marx Toys And Entertainment Corp.

Marx Toys And Entertainment Corp. manufactures and markets interactive toys and reissued collectible toys, along with classic games, playsets and ride along toys. Marx's vintage originals are highly collectible amongst hobby enthusiasts. Marx branded toys are sold at more than 400 toy and hobby retailers across the U. S. and has a rich history dating back to 1928. To read more on this history, visit http://www.marxtoys.com. In late July, Marx acquired a software company, AZtor Corporation. More info is at http://www.aztor.com