NEOPETS HEADED TO THE SILVER SCREEN ENTERTAINMENT FIRM MAKES REEL DEAL WITH WARNER BROS.

Byline: Brent Hopkins Staff Writer

Warner Bros. Pictures' latest would-be stars will be skeiths, lupes and perhaps a kiko or two after the company said Thursday that it inked a deal with online entertainment company Neopets Inc.

Terms were not disclosed, but Glendale-based Neopets' imaginary species, such as the wolf-like lupe and dragon-esque skeith, will be featured in computer-animated movies.

Neopets will co-finance the production with Burbank-based Warner Bros.

``It's a natural evolution for us,'' said Doug Dohring, Neopets' chairman and chief executive officer. ``From the very beginning, we wanted to introduce the characters through the Web and bring it into the real world. It's not low budget to make a quick buck. We're making a quality film to develop the story line.''

Dohring said he expects to have a movie ready for theatrical release in two years to three years. Meanwhile, the company will further its brand with a deal to bring the characters to cell phones and a PlayStation 2 release in July.

Originally conceived in 1999 as a goofy community for friends by British college students Adam Powell and Donna Williams, Neopets.com evolved into a business the following year. More than 25 million users have created characters in the alternate universe, spanning as far away as Germany and China.

Though the company has licensed its characters as toys in the past, this marks its first foray into the film world.

``We're looking forward to expanding this exceptional Internet property into feature films that bring the worldwide appeal of this Web site to theaters,'' said Warner Bros. president of production Jeff Robinov in a statement.

While the characters boast a sizable following online, toy industry observer Jim Silver said they haven't fully caught on with consumers. While a hot brand such as Mattel Inc.'s Barbie or MGA Entertainment's Bratz dolls could be tarnished if a movie tanked, he saw only an upside for the lesser-known Neopets.

``When you've got a successful property, do a movie and it fails, it hurts the brand,'' said Silver, who publishes Toy Wishes Magazine. ``They've got a successful Internet brand, but not much exposure elsewhere, so they can attract new people. There's definitely potential there.''

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

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(1 -- 3 -- color) Neopets creations Kiko, far left, Lupe, left, and Skeith, right, are now part of Warner Bros. family and will be featured in computer animated movies, cell phones and a PlayStation 2 game.