Media-Company presents bright Besults

Marvel Entertainment, Inc., a global character-based entertainment and licensing company, today reported operating results for the third quarter and nine months ended September 30, 2007.

For Q3 2007, Marvel reported that net income rose to $36.3 million, compared to net income of $13.2 million in Q3 2006. The year-over-year increases in net income are largely attributable to the strength of the Company’s worldwide licensing operations. The Q3 performance also benefited from continued growth in the publishing segment. Net income for the first nine months of 2007 was $112.2 million, compared to net income of $47.0 million for the same period in 2006.

Marvel’s Chairman, Morton Handel, commented, “Marvel achieved strong operating results across all its businesses for the third quarter and nine months ending September 30, 2007. Licensing segment results benefited from strong contributions related to Spider-Man 3 consumer merchandise licensing. The publishing segment continues to benefit from strong sales of event-driven imprints such as World War Hulk and Stephen King’s Dark Tower series. Finally, our toy license agreement with Hasbro yielded an improved operating income contribution in the 2007 periods, largely due to fees from Spider-Man 3-based products.“

“We are excited by the progress on our Iron Man and Incredible Hulk feature films for next year and the growing retail and consumer product support for these properties. We are also focused on tapping the potential of Marvel properties online, and are poised to unveil the first stage of that evolution by the end of 2007.”

Licensing

• Licensing Segment net sales more than doubled in Q3 2007 to $66.0 million compared to Q3 2006, primarily due to continued strength from Marvel’s Spider-Man merchandising joint venture (JV) with Sony. Supported by the May 2007 release of Spider-Man 3, the JV contributed revenues of $24.2 million in Q3 2007, compared to JV revenues of $0.8 million Q3 2006.

• Marvel’s Publishing Segment net sales increased $4.0 million or 13% to $34.9 million in Q3 2007 principally due to continued strength in the Direct and Mass Market channels and the benefit of special event publishing such as World War Hulk and Stephen King’s Dark Tower series.

• Marvel reported Toy Segment net sales of $22.7 million in Q3 2007, a decrease from revenues of $33.0 million in Q3 2006. The decrease was primarily due to the transition from toys produced by Marvel in 2006 to toys principally licensed to and produced by Hasbro, Marvel’s master toy licensee, in 2007.