DISNEY CLOSES COLOSSAL DEVELOPMENT DEAL

BURBANK, Calif., March 4 /PRNewswire/ -- Colossal Pictures, the award-winning northern California production company, has entered into a multi-year development and production pact with Walt Disney Television, as announced today by Dean Valentine, President, Walt Disney Television and Walt Disney Television Animation and Drew Takahashi, Colossal Chairman and co-founder.

Under the terms of the agreement, Colossal will be exclusive to the company for the creation of programs and their production. These include a sweeping range of project types, both animated and live- action, including television movies, series, mixed media, special effects and direct-to-video. Colossal's services will still be available for hire on projects that did not originate internally.

Colossal's Vice President of Creative Affairs, Joe Kwong, will spearhead project concepts and oversee production for all Disney-related developments. Already under consideration are several potential programs, including Saturday morning animation and live action comedy series for primetime.

"Colossal aptly describes the talent of this company and producers Joe Kwong and Drew Takahashi. With this teaming, Walt Disney Television enters a new arena of unlimited production and visual effect capabilities for network primetime and daytime programming," says Valentine.

In acknowledging the agreement, Colossal CEO and co-founder Drew Takahashi says, "We're extremely excited about working with the Disney family. Our companies share a passion for animation -- both for its tradition and its unlimited potential. And as Colossal makes the jump into live action drama and comedy, what better partner than Walt Disney Television to provide guidance and opportunities!"

Based in San Francisco, Colossal Pictures designs and produces film for all genres, using every technique, from computer and classic cel animation to photo and stop-motion; motion-control; clay and performance animation. Founded in 1976 by Drew Takahashi and Gary Gutierrez, the company has grown to employ a staff of 150 directors, artists, producers and technical personnel, working on a wide variety of projects. Colossal's work has won every major advertising award, including the Cannes Gold Lion, the Clio and Emmy Awards, Broadcast Designers Association Gold Award and the New York and Los Angeles Art Director's Club Awards.

For television, Colossal, in association with MTV, produced "Liquid Television" (1991-1993) as well as the series spin-off "Aeon Flux," currently airing on MTV. For Amblin Entertainment and Universal, they also produced the CBS Saturday Morning Series, "Back to the Future" (1991-'92). Additionally, Colossal produced the stylized, animated logos for The Disney Channel, MTV, Nickelodeon, HBO, ABC, CBS, NBC, PBS, FOX, ESPN and TMC.

Working in the advertising world, the company has produced television spots for major clients such as Coca-Cola, Levi-Strauss, Nike, AT&T, McDonald's, Kellogg's, Xerox, General Mills, General Foods, Honda, Anheuser-Busch, PepsiCo and Hershey's. The company has won Clio Awards for their 1995 Coca-Cola spots, "Setting Sun" and "Watch," and their 1991 Levi-Strauss spot, "Roger."

For the motion picture industry, their special effect and animation work has been seen in features such as "The Right Stuff, "Top Gun" and "Natural Born Killers." The company also designs main title sequences and has often collaborated with Francis Ford Coppolla on his films "One From the Heart," "The Cotton Club" and "Tucker," as well as the opening and closing montage for "Bram Stoker's Dracula."

They have made a mark in the music industry, winning Best Music Video Grammy for their work on Peter Gabriel's "Steam."

Colossal has been active in the realm of interactive and multimedia projects, having produced "Moxy," the first performance animation character with real-time, interactive capabilities, in association with The Cartoon Network, the recently released "Ruff's Bone," an interactive CD-ROM title, and "Psychic Detective," a live-action interactive movie. In addition, they have produced "Robocop - The Ride," an animated/live action motion simulator ride for Iwerks Entertainment.

Walt Disney Television is part of the Walt Disney Television & Telecommunications group.

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/CONTACT: Heidi Trotta of Disney, 818-560-7280; or Pam Hamilton of Colossal, 415-381-8198/

CO: Walt Disney Television; Colossal Pictures ST: California IN: ENT SU:

TT-SS -- LAM014 -- 9142 03/04/96 06:00 EST