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MARVEL, TOY BIZ & AVI ARAD FORM NEW TOY COMPANY

 NEW YORK, March 22 /PRNewswire/ -- Marvel Entertainment Group, Inc. (NYSE: MRV), Toy Biz, Inc. and renowned toy creator Avi Arad today announced the formation of a new and expanded Toy Biz, which will become a 46 percent owned subsidiary of Marvel.
 Marvel will contribute its master toy license and a working capital investment. Entrepreneur Isaac Perlmutter, who owns the privately-held, New York-based Toy Biz, will contribute all of its assets and will become chairman of the new Toy Biz. Mr. Arad will develop toys exclusively for the new Toy Biz and will also have an equity interest. Mr. Arad has developed toy lines for Hasbro, Mattel, Tyco, Galoob, and Toy Biz among others.
 Toy Biz had approximately $65 million in 1992 net revenues and is growing rapidly. Its products include Caboodles, Baby Loves to Talk, BOTS, VoiceBots, My Pal 2, the Eliminator, and, since 1990, Marvel Super Hero action figures, including its most popular line based on Marvel's mutant "X-Men".
 Mr. Arad said the new Toy Biz will develop a full line of Marvel toys aimed at Marvel's growing audience, expand other toy lines and increase distribution internationally. Currently, Toy Biz distributes to all major retailers, including Toys 'R Us, Wal-Mart, K Mart, Target, JC Penney and Kaybee Toys.
 Terry Stewart, president and COO of Marvel, said the new Toy Biz is expected to provide Marvel with substantial financial and strategic benefits: "We can convert a standard royalty into a substantially greater economic interest. In addition, we will have considerably more control than if we had granted a master license to a larger, unaffiliated company. Because Toy Biz contracts out all manufacturing, we can maintain Marvel's high margin, low capital investment profile. Ultimately, it enables Marvel to continue to expand its portfolio of youth entertainment products."
 All parties have signed definitive agreements. The transaction is subject to a Hart Scott Rodino filing and approvals from Marvel's banks, which are expected to be completed within 30 days.
 Marvel Entertainment Group, Inc. is a leading youth entertainment company in comic books, sports picture cards, consumer products licensing, and candy and gum products.
 -0- 03/22/93
 /CONTACT: Pam Rutt of Marvel Entertainment Group, 212-576-8535, or (investors) Gary Fishman of The Hudson Stone Group, 212-983-8550, for Marvel Entertainment Group, Inc./
 (MRV)


CO: Marvel Entertainment Group, Inc.; Toy Biz, Inc. ST: New York IN: ENT HOU SU:

AH -- NY047 -- 8201 03/22/93 11:39 EST
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Date:Mar 22, 1993
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