And The Winner Is...Teletubbies; Children's Phenomenon Sweeps LIMA Awards Ceremony.

NEW YORK--(BUSINESS WIRE)--June 8, 1999--

Teletubbies(TM) has won the 17th Annual Licensing Industry Merchandising (LIMA) Awards for Excellence for the following four categories: License of The Year, Entertainment/Character License of the Year, Entertainment/Character License of the Year/Hard Goods (Hasbro) and Entertainment/Character License of the Year/Soft Goods (Children's Apparel Network) at ceremonies held Monday night, June 7th at New York's Hammerstein Ballroom. The awards ceremony for this $130 billion industry was hosted by David Brenner with a special musical performance by Jennifer Holliday.

The multi-award winning children's series created by Anne Wood and Andrew Davenport of Ragdoll Productions (UK) Ltd., airs daily on PBS and was introduced to America in April 1998. Teletubbies is marketed in the Americas by The itsy bitsy Entertainment Company.

"There's joy in Teletubbyland at these latest awards," says Ragdoll's Founder and Creative Director, Anne Wood. "It's Big Hugs all round."

"We are thankful to have such creative partners in Ragdoll Productions. It has taken a lot of work from both sides of the Atlantic to make Teletubbies the success for which it is now recognized," said Kenn Viselman, President, CEO and Chairman of the Board of The itsy bitsy Entertainment Company. "It's a rare occasion that a preschool property receives this degree of attention in the licensing community. For that I am eternally grateful to my staff for their commitment and dedication to preschoolers and the adults in their lives. These awards now place the Teletubbies in the company of some of the biggest properties in history."

Since its inception, LIMA has recognized the very best brand owners, studios, agencies and licensees, including Warner Brothers, Lucas Films, and Disney with these awards -- a vivid testimony to the creativity and professionalism of the industry, which is estimated to have revenues in excess of $130 billion.

IT'S THE TELETUBBIES' WORLD

Teletubbies is now enjoyed by children in more than 50 countries around the world. In several countries, the inserts of real children playing --- which appears on the television screens in the Teletubbies' tummies --- are filmed locally. In Estonia, the series is called Teletupsuds and in neighboring Finland it is Teletapit (from one Teletapi, the plural becomes two Teletapit...) and the Teletubbies' cries of "again, again, again" become in Finnish "uudestaan, uudestaan, uudestaan."

Those countries where Teletubbies is broadcast (sometimes on more than one channel) are: Australia, Belgium, Bosnia, Canada, Denmark, Estonia, Finland, France, Germany, Holland, Hong Kong, Israel, Japan, Korea, Lithuania, Malaysia, Malta, Morocco, New Zealand, Norway, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, United States, Mexico, Central and South America.

Ragdoll Productions was founded by acclaimed children's television program maker Anne Wood in 1984 with the motto: "Ragdoll Works for Children." Worldwide, Ragdoll-produced series for preschool aged children are shown in more than 60 countries, and in the UK are screened by the British Broadcasting Corporation and the Independent Television Network. Titles include Teletubbies, Tots TV, Rosie and Jim, Brum and Open A Door, and recent awards include the Grand Prize at the 24th Japan Prize International Contest in Tokyo for an episode of Teletubbies, and the award to Anne Wood of Fellowship of the Royal Television Society. The company is based in Stratford upon Avon, England.

The itsy bitsy Entertainment Company (www.itsybitsyE.com) was launched to offer creators of unique properties a strong, dedicated partnership for production, distribution, licensing and marketing. Founded in 1995 by Kenn Viselman, The itsy bitsy Entertainment Company is known for inspiring "Safehaven Entertainment(tm)" programming and products that maintain the highest levels of consideration for positive parenting while enhancing children's lives. The company's philosophy is "To be free to learn, Children must be free to dream!" The itsy bitsy Entertainment Company is a member company of North Coast Entertainment, a subsidiary of Handleman Company (NYSE:HDL).