NewKidCo International Inc. Announces Preliminary Year End 1999 Results; Record Revenue and Net Income Anticipated.

Business/Technology Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--Jan. 27, 2000

Significantly Expanded Product Line-Up and Broadened

Distribution for 2000 Announced

NewKidCo International Inc. (OTC BB:NKCIF)(TSE:NKC), one of the leading children's video game publishers, announced today preliminary consolidated results for the twelve months ended December 31, 1999.

For the twelve months ended December 31, 1999, the Company anticipates recording record sales of approximately CDN $35.0 million, of which CDN $33.0 million was from continuing operations, versus CDN $3.6 million from continuing operations for the 12 months ended December 31, 1998.

For the twelve months ended December 31, 1999, the Company anticipates net income of approximately CDN $3.5 million of which CDN $.6 million was from continuing operations (net of CDN $.5 million of amortization of goodwill relating to the acquisition of NewKidCo, LLC), versus a net loss of CDN $14.0 million which included a CDN $1.4 million loss from continuing operations for the twelve months ended December 31, 1998. The Company expects to report full audited 1999 results by March 31st and plans to host a conference call at that time to further discuss these results and the outlook for the coming year.

Richard Rabins, CEO of NewKidCo International Inc. stated, &uot;the 1999 holiday selling period was by far the strongest revenue producer for the Company thus far. Purchasers of our games, primarily parents and grandparents, recognize that we are producing quality, fun, non-violent products for children. Our explosive growth in 1999 clearly indicates the strong market for our current products and positions the Company extremely well for the coming year, with an array of very exciting products along with wider distribution&uot;.

The Company believes it is poised for dramatic growth in 2000 with the most extensive product lineup in the company's history, featuring several of today's most recognizable and popular children's characters. To kick off NewKidCo's year, Winnie the Pooh and friends will make their debut on video games. In addition, the 2000 line-up is expected to feature titles based on Disney's Doug and Disney Classic Characters, Children's Television Workshop's Sesame Street, Warner Bros.' Tom &Jerry and Sony Pictures Consumer Products' Dragon Tales.

NewKidCo plans to support its entire product line-up with integrated marketing programs, highlighted by national television advertising campaigns and high-profile promotional opportunities such as tie-ins with &uot;The Tigger Movie&uot; and Disney Home Video Releases. Aggressive public relations and online marketing initiatives will round out the programs.

&uot;1999 marked a year of tremendous growth for NewKidCo and the children's console market,&uot; said Hank Kaplan, President of NewKidCo, LLC. &uot;Over the past year and a half we have laid the ground work to establish ourselves as a leading force within the children's video game industry by aligning ourselves with strong licensors such as Disney, Children's Television Workshop, Sony Pictures Consumer Products, Warner Bros. and Sanrio. We are extremely excited to unveil this year's line-up as we anticipate that each of our existing and new titles will do well in 2000.&uot;

NewKidCo's planned 2000 Line up:

DISNEY INTERACTIVE

Winnie the Pooh

Welcome to the video game honey pot, Pooh! After more than 70 years as a beloved children's character, NewKidCo will bring Winnie the Pooh and all his friends to the world of video games for the first time ever on PlayStation, Game Boy Color  and Nintendo 64. The first title, Winnie the Pooh: Adventures in the 100 Acre Wood for Game Boy Color is expected to ship in the spring, on the heels of the national release of The Tigger Movie and the Sing A Song With Tigger home video. Pooh titles for PlayStation and Nintendo 64 are expected to ship this fall.

Disney Classic Adventures Hosted by Goofy

Later this year, boys and girls everywhere can plan to interact with Goofy, one of the most popular Disney characters of all time. The PlayStation game combines classic Disney cartoon footage with zany game play offering youngsters a whole new way to experience Goofy and their other favorite Disney pals.

Doug

Disney's #1 rated Saturday morning television program on ABC is coming to Game Boy Color as NewKidCo plans to release Doug's first video game featuring the character's elementary school adventures this fall. Doug's fan base has skyrocketed as the show currently airs on ABC, Nickelodeon and UPN with more than 15 million viewers per week.

CHILDREN'S TELEVISION WORKSHOP

Sesame Street

Following Sesame Street's successful 1999 video game debut, NewKidCo plans to release two additional preschool titles featuring Elmo, Big Bird and others. The Children's Television Workshop program has been enchanting children for more than 30 years. The new games for PlayStation and Game Boy Color will star the Sesame Street gang and prove that the right attitude and some extreme sporting adventures makes &uot;the street&uot; the place to be. Both titles are expected to ship this fall.

WARNER BROS.

Tom &Jerry

NewKidCo will chase Tom &Jerry into the new millennium as they release interactive adventures inspired by the crazy cat and mouse team for PlayStation, Game Boy Color and Nintendo 64. All three titles will capture the spirited love/hate antics of Tom &Jerry's animated series that has been entertaining audiences for generations. The games are planned to ship this fall.

SONY PICTURES CONSUMER PRODUCTS

Dragon Tales

Poof! Dragon Tales, one of today's hottest kids properties will fly into the video game market this year as NewKidCo breathes fire into age-appropriate interactive adventures for the PlayStation and Game Boy Color. The video game titles, inspired by the top rated PBS animated series, will be designed to create the ultimate playdate by enabling youngsters to join in the magical Dragon Land adventures and are expected to be released in fall 2000.

About NewKidCo:

NewKidCo International Inc. (OTC BB:NKCIF)(TSE:NKC) publishes video games for young children on &uot;next generation&uot; game console systems. NewKidCo's mission is to become the leading provider in the children's video game category with such licensed properties as Sesame Street(R) from Children's Television Workshop(R), Winnie the Pooh(R), Doug, Disney Classic characters and Mulan from Disney, Tom &Jerry(R) from Warner Bros. and Hello Kitty(R) from Sanrio. NewKidCo's products are sold nationwide through the retail channel. To learn more, visit http://www.newkidco.com

PlayStation is a registered trademark of Sony Computer Entertainment Inc. Nintendo, Game Boy and Game Boy Color are registered trademarks of Nintendo of America Inc. All other names are trademarks or registered trademarks of their respective companies

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including without limitation risks related to lack of capital, risks of intellectual property rights and litigation, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company's products, risks of downturns in economic conditions generally, risks associated with competition and competitive pricing pressures, risks associated with foreign sales, risks associated with the sell-through of products in the sales channels, risks associated with customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission.