DIC Entertainment Files $20 Million Federal Lawsuit against Troll Company A/S.

BURBANK, Calif. -- DIC Entertainment ("DIC"), a leading entertainment and global brand management company filed a lawsuit against Troll Company A/S ("TC") in federal court in Los Angeles today, alleging claims of fraud in the inducement and negligent misrepresentation in connection with two TC brands that DIC licensed from TC: (1) the "Good Luck Troll," a 1950s-era troll doll created in Denmark and (2) the "Trollz," a modernized version of the Good Luck Troll that was created by DIC in 2003.

DIC's complaint alleges that, pursuant to the terms of the licensing agreements, DIC successfully created, developed, and marketed the Trollz, simultaneously attempting to reinvigorate sales of the Good Luck Troll. Before entering into the licensing agreements, however, DIC alleges that it expressed concern about the sale of counterfeit Good Luck Trolls and other infringing products, since such "knock-off" products threatened to undermine the value of the both the Classic Trolls and the Trollz. In response, DIC alleges, TC repeatedly assured DIC that TC had been vigilant in stamping out any counterfeits and other infringing products and, indeed, expressly represented and warranted that, at the time the parties entered into the licensing agreements, TC was not aware of any infringement of the Good Luck Trolls.

DIC alleges that, at the time that TC made these representations to DIC, TC knew that the Good Luck Troll was the subject of widespread infringement, with unauthorized sales of counterfeit trolls persisting on a global scale. DIC alleges that, in reliance on TC's fraud, DIC devoted years of painstaking effort and nearly $20 million to develop and promote the Good Luck Troll and Trollz - properties whose value had (without DIC's knowledge) been compromised by rampant infringement.

DIC's lawsuit seeks damages of approximately $20 million, plus attorney fees and punitive damages.

About DIC Entertainment

DIC Entertainment, a fully-integrated global brand management company, is dedicated to creating, developing, producing, distributing, marketing and merchandising family-based intellectual properties. The Company serves as the worldwide licensor or agent for brands such as McDonald's, Strawberry Shortcake, Madeline, Mommy & Me, and Eloise. DIC has distinguished itself by building one of the largest libraries of animation worldwide with approximately 3,000 half-hours of programming, including Inspector Gadget[TM], Strawberry Shortcake[TM], Horseland[TM], Sabrina[TM], Madeline[TM], Liberty's Kids[TM], Sonic The Hedgehog[TM] and Care Bears[TM]. This year, DIC and American Greetings Properties partnered to launch a new educational and informational Saturday morning programming block, "KEWLopolis on CBS." As a pre-eminent supplier of kid's programming worldwide, DIC has developed strategic partnerships with key broadcast partners throughout North America, Europe, Asia, Latin America, Africa and Australia. In 2006, DIC acquired Copyright Promotions, a Pan-European licensing agency that represents the licensing rights of a broad portfolio of world-renowned companies including DreamWorks Animation, MGM, Marvel, Sony, Twentieth Century Fox, Viacom and The Football Association. DIC is headquartered in Burbank, California with offices in New York, Paris and London.