Equity Marketing Announces Worldwide License Agreement to Product Toys Based on Universal Pictures' "Babe in Metropolis".

LOS ANGELES--(BUSINESS WIRE)--Sept. 24, 1997--Equity Marketing, Inc. (NASDAQ:EMAK) announced today that its Equity Toys division has signed a three-year license agreement with Universal Studios Consumer Products Group (USCPG) to become the worldwide master toy licensee for the upcoming sequel to Universal Pictures' Academy Award(R) nominated "Babe."

The agreement entitles Equity Toys to create and market toys based on the characters from "Babe In Metropolis," which is currently scheduled for release during the 1998 Holiday season.

Under terms of the licensing agreement, Equity Toys has worldwide rights to design, manufacture, market and distribute toys based on the characters from the sequel and the original Babe as part of the Babe and Friends brand. The toy line will consist of an extensive range of plush and figural toys and other feature products.

"This agreement marks perhaps the most significant milestone in the four-year history of Equity Toys," commented Don Kurz, president and co-chief executive officer of Equity Marketing.

"Securing worldwide master toy rights for all distribution channels, for potentially one of the most lucrative licenses for 1998, is testimony to the product quality and distribution power that we have developed. We are pleased to continue our deepening partnership with Universal Studios Consumer Products and look forward to growing this relationship."

Kurz continued, "`Babe' joins Universal's `The Land Before Time' franchise as one of Equity Marketing's core product lines that we believe will generate sales for years to come. In particular, we believe the Babe and Friends brand has the potential to become one of the classic evergreen properties in the world of licensing."

"We value `Babe' and its upcoming sequel as one of our most endearing film properties whose values, innocence and heroics will be cherished by generation after generation," said Jim Klein, President of Universal Studios Consumer Products Group.

"In keeping with the level of importance that we place on the Babe and Friends brand, we have selected Equity Marketing, Inc. as our master toy partner because of their outstanding reputation for unsurpassed product quality and creativity."

Equity Toys creates and manufactures products for sale through leading mass-market and specialty retailers such as Toys R Us, Kmart, Target, KayBee Toys, Wal-Mart, F.A.O. Schwarz, Store of Knowledge, Blockbuster and Imaginarium.

Equity Marketing designs, develops, produces and markets worldwide a broad range of toys, gifts and other products based on characters from popular entertainment properties licensed by major television and motion pictures studios, as well as its own original characters and concepts.

Universal Studios is a diversified entertainment company and a worldwide leader in motion pictures, television, music, home and location based entertainment. Universal Studios is a unit of The Seagram Company Ltd., a global beverage and entertainment company. -0-

This news release contains forward looking statements. The Company wishes to caution readers that all forward-looking statements are necessarily speculative and not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

The Company also wishes to advise readers that actual results could vary due to a variety of risks and uncertainties including, for example, the potential cancellation of promotions due to delays in timing of theatrical motion picture releases, the ability to renew licenses under favorable terms, the Company's dependence on a single customer, quarterly fluctuations in financial results and changes in international tariff rates.

The risks highlighted herein should not be assumed to be the only things that could affect future performance of the Company. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstance after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT: Equity Marketing, Inc.

Michael J. Welch, 310/887-4315

Mollie Leiser, 212/614-5109