BACK IN THE PLUSH LIFE MAJOR DEAL HERALDS TOYMAKER'S RETURN FROM BRINK.

Byline: Gregory J. Wilcox Staff Writer

WOODLAND HILLS - Toymaker Applause/Dakin LLC has signed a long-term, multimillion-dollar deal to make a wide range of products for The Walt Disney Co., including those related to the hit teen-age television show ``Lizzie McGuire.''

The deal disclosed Friday is for three years with a one-year option but financial terms were not disclosed. A source familiar with the transaction said it is in the ``deep eight-figure'' range.

Applause/Dakin will make dolls, plush characters, puppets, key chains, drinkware and novelties that will be sold through retailers like FAO Schwarz and Toys 'R' Us.

``This is the most all-encompassing licensing deal I think they've ever had,'' Applause/Dakin President Robert G. Solomon said of the partnership with Burbank-based Disney.

This is considered a huge step for the Woodland Hills-based toy company, which was resurrected from foreclosure proceedings a year ago by Solomon, who first worked at the company in the 1980s.

Solomon bought the company's assets and hired back 400 workers who otherwise would have been out of a job. But the market for the company's products took a severe hit from the terrorist attacks of Sept. 11 and Solomon had to trim the work force by about 10 percent.

``This is a great first step back. There is a lot of equity with the Disney brands and they are making a major push this year with the Princess collection,'' said Jim Silver, publisher of the consumer magazine Toy Wishes.

Solomon is particularly jazzed about the ``Lizzie McGuire line,'' which he said received a warm reception when it was introduced last week at the American International Toy Fair in New York.

The show about a teen-age girl's travails in junior high school debuted on the Disney Channel last year and blossomed into a hit among the tweens and teens set.

Solomon has personal experience with the buzz generated by the television show, which will jump to the big screen next year. His two teen-age daughters are friends with the Olsen twins, Mary-Kate and Ashley, who starred in ``Full House'' and have their own television show ``Two of a Kind.''

The kids are way big fans of ``Lizzie.''

``I'm especially tuned in because I've got my two teen-age daughters and 6-year-old boy,'' said Solomon, noting that his son is a fan of Lizzie's TV brother, Max. ``It just seems to be hitting on all cylinders as it relates to Disney.''

Applause/Dakin also has the product tie-in with Disney's planned summer release of ``Lilo & Stitch,'' an animated movie about a girl's close encounter with an alien whom she thinks is a dog. The film is set in Hawaii and the soundtrack features classic Elvis Presley tunes.

Disney spokeswoman Sondra Haley said the company has had a good relationship with Applause/Dakin in past partnerships.

``We're excited about working with Applause. They do so well in their core speciality plush business. They've helped us with Pooh, Mickey and our entertainment properties,'' she said.

Industry analyst Silver said this should be a good year for this kind of merchandise.

``The toy industry is going to be much better in 2002 than in 2001. The industry is looking at about a 6 percent increase. There are a lot more items coming out and there are some big movie licenses this year,'' he said.

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Photo:

(color) Applause/Dakin President Robert G. Solomon gets acquainted with Winnie-the-Pooh and some of the other characters he'll be working with as a result of his toy company's partnership with The Walt Disney Co.

Phil McCarten/Staff Photographer