(KIDO) Kideo Productions, Inc. Reports Effective Registration on Behalf of Selling Stockholders.

NEW YORK--(BUSINESS WIRE)--Sept. 12, 1997--Kideo Productions, Inc. (NASDAQ: KIDO; KIDOW) announced that the SEC recently declared effective, under the Securities Act of 1933, a registration statement filed by the Company on behalf of certain selling stockholders, none of whom were affiliates of the Company. The final Prospectus was filed with the SEC on Monday, September 8, 1997, and copies of it were disseminated to the selling stockholders on September 10. Registered for potential sale under the registration statement were: (i) the shares of Common Stock of the Company which are issuable pursuant to the conversion provisions of the Company's Series A 6% Convertible Participating Preferred Stock (the "Preferred Stock"); and (ii) the shares of Common Stock which may be issued pursuant to the exercise of certain warrants (the "Underwriter's Warrants") sold in June, 1996 to Whale Securities Co., L.P., in connection with its role as underwriter of the Company's initial public offering.

The Preferred Stock was initially issued in May 1997, to Sellet Marketing Corp. ("Sellet") pursuant to a private placement transaction arranged by Gerard Klauer Mattison & Co., as placement agent. Under the terms of that transaction, shares of Preferred Stock having an aggregate purchase price of $2million are issuable to Sellet. Of that amount, the Company has received $750,000 and expects the balance of the Preferred Stock to be issued and sold at one or more closings to occur in the near future. By its terms the Preferred Stock is currently convertible by its holder into shares of Common Stock (which are among the shares Just registered), in accordance with the provisions of the Certificate of Designations relating to the Preferred Stock. The Underwriter's Warrants are currently exercisable but are "out of the money."

$470,000 of Preferred Stock has been converted into 300,000 shares of Common Stock at various times through the close of business on September 11, 1997. The remaining $280,000 of Preferred Stock, which is currently outstanding, would be convertible into approximately 175,000 shares at that date under a conversion formula that is tied to the average closing bid prices of the Common Stock prior to conversion.

Kideo Productions, Inc. uses proprietary digital technologies to produce personalized video products for children in which the child's face and name are inserted, making the child the main character in the story. Personalized Kideo videos are designed to reinforce positive educational and behavioral themes such as self-esteem, friendship, spelling and counting. The Company also manufactures and markets a full line of toy products based on the Company's proprietary characters.

CONTACT: Kideo Productions, Inc.

Robert J. Riscica, CFO 

[phone] ext. 115;

[phone] (Fax)