NewKidCo and Disney Interactive Ink Multi-Year, Multi-Platform Deal to Develop Console Titles Featuring Popular Disney Characters.

BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 7, 1999--

Products Will Feature Characters Such As

Winnie The Pooh, Mulan And Doug

Children's game publisher NewKidCo(TM) International Inc. (TSE:NKC; OTC BB:NKCIF) and Disney Interactive, have entered into a multi-year agreement to develop and publish console video games featuring popular Disney properties. Through the deal, NewKidCo has obtained the rights to publish interactive adventures for various video game platforms, including PlayStation(R), Nintendo 64(R) and Game Boy(R) Color.

"This agreement with Disney Interactive, a giant in the children's and family interactive entertainment industry, enhances NewKidCo's strategy while bolstering our portfolio of high-profile interactive titles for youngsters," said Richard Rabins, Chief Executive Officer, NewKidCo International Inc. "We believe that this deal firmly establishes NewKidCo as a leader within the children's console gaming industry."

Hank Kaplan, President NewKidCo, LLC, a subsidiary of NewKidCo International Inc., added, " We are extremely pleased to be working with Disney Interactive to develop titles based on such beloved properties. Through this deal, we can offer kids exciting new ways to participate in the adventures of their favorite Disney characters."

As part of the agreement, the first title targeted for release will be Disney's Animated Storybook, Mulan, featuring the spirited girl and other characters from the hit animated feature, Disney's Mulan. Additionally, three games based on Disney's Winnie the Pooh, as well as titles featuring other Disney characters, are expected to hit retail in 2000.

Jan Smith, Executive VP and General Manager, Disney Interactive, stated, "We are delighted to be working with NewKidCo as we continue to bring quality, family-oriented interactive entertainment to children and families."

NewKidCo International

NewKidCo International Inc. (OTC BB:NKCIF; TSE:NKC) owns NewKidCo LLC, publishing video games for young children on "next generation" game console systems. NewKidCo's mission is to become the leading provider in the children's video game category with such popular licensed properties as Sesame Street(R) from Children's Television Workshop(R), Steven Spielberg presents TINY TOON Adventures(R) from Warner Bros. and Hello Kitty(R) from Sanrio. NewKidCo's products are sold nationwide through the retail channel. For more information please visit http://www.newkidco.com.

PlayStation is a registered trademark of Sony Computer Entertainment Inc. Nintendo 64 and Game Boy Color  are registered trademarks of Nintendo of America Inc. All other names are trademarks or registered trademarks of their respective companies.

Statements in this press release which are not historical are forward-looking statements 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 associated with the company's financial condition and prospects, 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 the sell-through of products in the sales channels, risks in technology development and commercialization, and other risks detailed in the Company's filings with the Securities and Exchange Commission. These risks may cause results to differ materially from those projected in the forward-looking statements.

Press material can be accessed at http://www.newkidco.com