Stan Lee Media Institutes Animation Outsourcing, Reduces Internal Production Workforce; Move to Support Company's Transition to Revenue Model.

Business & Entertainment Editors

LOS ANGELES--(BUSINESS WIRE)--Sept. 18, 2000

Stan Lee Media, Inc. (Nasdaq:SLEE), the multimedia branded content creation, production, marketing, and licensing company founded by pop icon Stan Lee, today announced that, in conjunction with its implementation of Toon Boom Technologies, Inc.'s U.S. Animation software, Stan Lee Media has begun to outsource elements of its animation production to overseas animation production companies. In a related event, Stan Lee Media announced the elimination of 19 positions in its production department.

"This is an opportunity to maintain the highest quality animation, while reducing internal overhead costs. Outsourcing portions of the production process to overseas animation production companies will also allow us to direct added creative resources and focus more attention on creating additional branded content and developing the type of strategic partnerships and licensing agreements that will culminate in revenue generation. Our slate of current production, as well as our moving into production on our recently announced franchises such as `Conan the Barbarian' and Gene Roddenberry's `Starship,' gives us the critical volume necessary to establish international production partnerships," stated Kenneth Williams, Stan Lee Media President and CEO.

Stan Lee Media's adoption of Toon Boom's U.S. Animation software will allow it to access a large network of international animation production facilities, while simultaneously helping the company to continue to build repurposable, vectorized databases that can be easily distributed over different media.

In April, Stan Lee Media announced that it had entered a strategic partnership with Canadian-based Toon Boom to develop and produce new cross-platform animation software that Stan Lee Media uses in constructing its episodic Web productions, or webisodes.

Stan Lee Media, Inc. (www.stanlee.net) is a branded entertainment creation, production and distribution company that uses the Internet to launch branded content and to commercialize globally that content through traditional media. New superhero character franchises and animated series are created under the direction of pop-culture icon Stan Lee, co-creator of such classic characters as Spider-Man, the Incredible Hulk and the X-Men. These franchises and other co-branded properties are exploited through strategic partnerships and licensing for a broad array of uses including animated television, motion pictures, music, events and theme park attractions. The Company is establishing its website as a leading destination site on the World Wide Web for animation, interactive games, community, commerce and other "sticky content." Stan Lee Media has acquired all rights to "Conan the Barbarian" and has partnered with international singing sensations the Backstreet Boys to produce an animated, superhero brand extension of the group residing on a community site developed and owned by SLM, www.backstreetproject.com. The Backstreet Project/Burger King promotion is among the largest offline campaigns ever to support an Internet entertainment franchise. Stan Lee Media is currently producing two other hit animated web series, the "7th Portal" and "The Accuser," and is co-developing a major live-action motion picture based on the "7th Portal" with the Mark Canton Company.

This release contains statements that constitute "forward-looking statements" within the meaning of Section 21E of the Exchange Act and Section 27A of the Securities Act. The stockholders of Stan Lee Media are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected in this release resulting from the following reasons (among others): the timing of sales and deliveries under existing contracts, general economic conditions, costs of sales and the ability of the company to maintain pricing levels necessary to maintain gross profit margins, the level of selling, general and administrative costs, the performance by the company under existing purchase contracts and the ability to obtain new contracts, the success of the company's strategy, and the effects of competition. In addition, the company's shareholders are urged to carefully review the risk factors discussed in the documents the company files from time to time with the Securities and Exchange Commission.