4Kids Entertainment Named Worldwide Licensing, Marketing, and Promotional Agent For Jim Henson Designs.

NEW YORK -- Company Partners with The Jim Henson Company to Develop Design-Oriented Merchandise Collection Inspired by the Artist's Earliest Archived Sketches

Jim Henson's legacy is undeniable. His creations for television and film continue to dazzle and inspire the imaginations of both the young and old each day around the globe. Now, thanks to a new partnership between 4Kids Entertainment, Inc. (NYSE: KDE) and The Jim Henson Company, people will be able to see what inspired this exceptional artist and view the world from his unique perspective.

4Kids and The Jim Henson Company are joining creative forces to launch Jim Henson Designs - a highly-artistic and innovative merchandise collection inspired by the rarely-seen works of the legendary puppeteer and filmmaker. For the first time ever, fans and newcomers alike have an opportunity to get to know and love Henson's earlier and most precious art creations through a comprehensive licensing program that exposes the more intimate and personal side of Henson's genius.

Henson began his career in graphic design and his lesser known works, often drawn on a variety of mediums from sketchpads to restaurant placemats to festival programs, consist of thousands of drawings (creatures of all shapes and sizes are ubiquitous in his sketchpads), landscapes (trees and farms were a favorite), and patterns (mazes full of goblins and monsters foreshadow his later fantasy projects).

In keeping with the integrity of these lesser-known pieces of art (currently housed in Henson's New York archives), Jim Henson Designs will imbue each product with the ideals and spirit of Jim Henson the Artist. The initial focus of the licensing program will be on creating captivating lines of apparel, accessories, and housewares to showcase these rarely-seen creations while carefully maintaining the creativity, joy and irreverence that have become synonymous with the Henson name.

"Jim Henson and his decades-worth of creations have been one of the most impactful and memorable forces in entertainment; he is a legend," said Alfred R. Kahn, Chairman and CEO of 4Kids Entertainment. "But what most fans don't know is that before we all fell in love with his life's work, Jim Henson was endlessly exploring new ideas -- sketching and drawing his thoughts for puppets, films, and television shows, to name just a few. His original artwork lends itself perfectly to an extraordinary collection of merchandise that is sure to be embraced by both kids and adults. In launching Jim Henson Designs, 4Kids and the Jim Henson company plan to reveal to the world these rare works of art and help further inspire the imagination and sense of wonder of generations to come."

Added Lisa Henson, co-CEO of The Jim Henson Company, "My father enjoyed celebrating life and with this positive energy and optimistic view, he tried to find joy in everything he did - adding a healthy dose of irreverence along the way. These earliest sketches reveal the very roots of his inspiration and, by working with 4Kids, we hope to introduce others to Jim Henson's 'mindstyle' - a way of seeing the world with wonder, laughter and infinite possibilities."

About 4Kids Entertainment

Headquartered in New York City with international offices in London, 4Kids Entertainment, Inc. (NYSE: KDE) is a global provider of children's entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries, provides domestic and international merchandise licensing; television, film, music and home video production and distribution; media planning and buying; product development and Web site development. For further information, please visit the Company's Web sites at www.4KidsEntertainment.com and www.4Kids.TV.

About The Jim Henson Company

The Jim Henson Company, an established leader in family entertainment for over 50 years, is recognized worldwide as an innovator in puppetry, animatronics and computer graphics. Best known as creators of the world famous Muppets (the rights to which are now owned by The Walt Disney Company), Henson is the recipient of nearly 50 Emmy Awards, nine Grammy Awards and two Oscar Awards. Credits include the Saturn Award-winning "Farscape: The Peacekeeper Wars" and the features "Five Children and It," "Good Boy" and "MirrorMask". The company also produced the television feature "The Muppets' Wizard of Oz" for Buena Vista Television. Headquartered in Los Angeles with offices and production facilities in New York and London, the company has most recently completed post-production on its first fully-animated project, "Frances." The Jim Henson Company's website is located at: www.henson.com.

The information contained in this press release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors beyond the Company's control, including general economic conditions, consumer spending levels, competition from toy companies, motion picture studios and other licensing companies, the uncertainty of public response to the Company's properties and other factors could cause actual results to differ materially from the Company's expectations.