The Harvey Entertainment Company to Publish New Monthly Kids Magazine; National Lampoon Founder Matty Simmons Named Publisher.

LOS ANGELES--(BUSINESS WIRE)--Aug. 3, 1998--

Harvey to Begin Publishing Magazine for Children Four to Ten

Years of Age

The Harvey Entertainment Company (Nasdaq: HRVY) announced today that it will publish a new monthly magazine targeted to children four to ten years of age entitled Harvey, the Magazine for Kids. Harvey has entered into an agreement with Matty Simmons, founder of National Lampoon, Weight Watchers and other successful magazines, to serve as the publisher. Julie Lynch, the noted children's author and former editor of Heavy Metal magazine will serve as Editor.

Time-Warner's Publisher Services will distribute the magazine. The four color slick magazine will include the Harvey such classic characters Casper the Friendly Ghost, Richie Rich, Baby Huey, Little Audrey, Lotta, Wendy the Good Little Witch. Harvey, the Magazine for Kids will combine comics with illustrated children's stories, games, puzzles, jokes and innovative features new to childrens' publications. It will emphasize kids having fun while learning about the world around them.

The magazine will premiere with its December issue and will be on sale at newsstands and stores nationwide November 10 at an introductory price of $2.95.

"There is a tremendous audience for a quality educational and entertaining publishing product which can serve the needs of parents and their children," commented Mr. Simmons. "The Harvey Classic characters are time-tested and provide an ideal foundation for this original new format."

In 1967, Matty Simmons formed 21st Century Communications, which later became National Lampoon, Inc. The company went public in 1972 with Simmons serving as Chairman of the Board and Chief Executive Officer. Its first publication was Weight Watchers Magazine, founded in 1968. In 1970, the company introduced National Lampoon, which became the most popular humor magazine in publishing history.

In 1978, Simmons produced the movie National Lampoon's Animal House, considered the most popular comedy film of all time. Later he produced, among other films, the family- themed "Vacation" pictures. He also produced the theatrical musical comedy Lemmings as well as other Broadway and national live theater productions and the National Lampoon's Radio Hour.

The well-known magazine editor Julie Lynch is also a popular children's book author. Additionally, she served on the editorial staffs of Weight Watchers Magazine and New Ingenue and is a children's art historian and teacher.

Editorial offices of Harvey, the Magazine for Kids are based in Long Valley, New Jersey and advertising representation will be handled by Jay Eisenberg of JE Publishers in Beverly Hills, California. Chris Howland, the Design Director of Interiors magazine for the past eight years, will serve in the same capacity for Harvey, the Magazine for Kids.

The Harvey Classic characters continue to generate significant revenue through merchandising and filmed entertainment. Casper the Friendly Ghost, the hit movie from Universal grossed $307 million worldwide with a sequel now in preparation. The direct-to- video film Casper, A Spirited Beginning achieved sales of more than five million units. Casper Meets Wendy, another direct-to-video, arrives in stores this fall.

Richie Rich, a Warner Brothers feature film starring McCauley Culkin, generated $80 million in worldwide revenues and is being prepared for a sequel. The direct-to-video Richie Rich's Christmas Wish is scheduled to be released in November.

The Fox Family Channel will present Harveytoons this year; 65 half-hour segments of digitally restored theatrical and television animation.

The Harvey Entertainment Company is engaged in the management and exploitation of its proprietary branded characters through merchandising and filmed entertainment, which included theatrical, home video and television. The Harvey Classic Character Brands include Casper, the Friendly Ghost, Richie Rich, Fatso, Stinkie and Stretch (the Ghostly Trio), Baby Huey, Hot Stuff, Little Audrey, Wendy the Good Little Witch and many others. For more information on The Harvey Entertainment Company, visit the Company's website at http://www.harvey.com.

CONTACT: The Harvey Entertainment Company, Los Angeles 

Paul Nichols

[phone] or [e-mail]

or

Jaffoni & Collins Incorporated

Vicki Siegel

[phone] or [e-mail]