Equity Marketing Secures License to Produce Toys Based On Warner Bros.' Scooby-Doo Characters.

LOS ANGELES--(BUSINESS WIRE)--June 10, 1998--Equity Marketing, Inc. (NASDAQ:EMAK) today announced that its Equity Toys division has signed a master toy licensing agreement with Warner Bros. Consumer Products to create a line of toys based on the characters from Scooby-Doo, one of the longest running children's cartoon shows in television history.

The license extends for three years, with limited initial shipments anticipated in the fourth quarter of 1998.

Under the terms of the licensing agreement, Equity Toys has rights to design, manufacture and distribute an extensive range of products to mass market and specialty store retailers in the United States. Products covered by the Scooby-Doo license include plush, figural toys and playsets.

"Securing the toy license for one of the most popular, long running and successful cartoon series in the history of television marks a significant achievement for Equity Toys and complements our evergreen portfolio of children's entertainment properties perfectly," commented Donald Kurz, President and Co-CEO of Equity Marketing.

"Scooby-Doo is the number one show on the Cartoon Network and is one of the top animated shows on the TNT and TBS networks. The show is potentially viewed by 40 million households daily and has 310 episodes already in syndication. We are confident that this proven and popular brand will generate strong sales for years to come and we look forward to expanding our relationship with Warner Bros. in the future," Kurz stated.

"Scooby-Doo is one of the most well-known and best loved children's entertainment properties Warner Bros. owns," said George Jones, president of worldwide licensing for Warner Bros.

"Selecting Equity Toys as our licensing partner makes perfect sense to Warner Bros. and we see this as a good fit for our Scooby-Doo line. Equity Toys has repeatedly demonstrated its ability to turn entertainment characters, especially children's television entertainment properties, into appealing, high quality products that reinforce the popularity and market appeal of the underlying brand and drive sales."

Warner Bros. Worldwide Licensing, a Time Warner Entertainment Company, L.P., is one of the leading and most diversified licensing and retail merchandising organizations in the world. With over 3,700 active licensees, WBCP handles the licensing and merchandising for all of the properties in Warner Bros.' vast library including such world-renowned brands as Looney Tunes, Batman, Superman, Scooby Doo and its many hit films and series.

The division's businesses include domestic and international product and promotional licensing, publishing and interactive software. WBCP includes the highly successful Warner Bros. Worldwide Licensing (the umbrella housing Worldwide Publishing, Warner Bros. Interactive Entertainment, Kids' WB! Music, WB Sport and WB Toys) and the Warner Bros. Studio Stores.

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. Schwartz, Store of Knowledge, Zany Brainy and Blockbuster Video.

Equity Marketing designs, develops, produces and markets worldwide a broad range of consumer products, collectibles and promotional products incorporating licensed characters from films, television, sports, publishing and other sources.

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. Actual results could vary materially from those anticipated for a variety of reasons, including, without limitation, the potential cancellation and/or delay of promotions due to delays in release of the theatrical motion pictures, the failure of the Company to obtain promotions projects based on these motion pictures at anticipated levels, the success or failure of a specific motion picture or television property, the loss of existing licenses or the inability to renew or extend licenses under favorable terms, consumer demand for its products, the Company's dependence on a single customer, quarterly fluctuations in financials results and increases in international tariff rates, which would increase the Company's cost of sales. 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 Welch, 310/887-4315