Marvel Enterprises and Crystal Sky Entertainment Join Forces to Produce Feature Based On Popular Comic Franchise Ghost Rider.

Business/Entertainment Editors

CANNES, France & NEW YORK--(BUSINESS WIRE)--May 18, 2000

Marvel Enterprises, Inc. (NYSE:MVL) and Crystal Sky Entertainment have entered into an agreement to jointly produce a feature film based on Ghost Rider, one of Marvel's most successful and edgy comic book characters. The announcement was made today by Avi Arad, President and CEO, Marvel Studios, and Steven Paul, President and CEO, Crystal Sky Entertainment.

Scheduled for production early next year, Ghost Rider is expected to be budgeted at $75 million. Johnny Depp is being targeted to play the Ghost Rider. Arad, Paul and Academy-Award winning actor Jon Voight, who may also play a role in the film, will produce. The Ghost Rider screenplay was scripted by David Goyer, the writer of the acclaimed and successful Blade film.

Ghost Rider, who made his debut in August 1972 in Marvel Spotlight No. 5, is one of Marvel's premiere properties. The Ghost Rider storyline focuses on a motorcycle stuntman, who, seeking revenge for harm done to his one true love, makes a pact with dark forces to avenge the wrongdoing. By day, the Ghost Rider is a motorcycle stuntman able to perform superhuman tricks; by night he is transformed into a burning demon on wheels as he hunts down those who bring pain to the innocent.

Beverly Hills based MM Media Capital Partners, which recently concluded a $100 million line of credit arrangement with Crystal Sky, will finance the film. MM Media Capital Partners is the new banking consortium headed by Hal Sadoff, Rodney Paine and Myles Nestel, all formerly of Coutts and Co. and National Westminster. Revenues generated from the distribution of the film, as well as from licensing and merchandising will be shared equally by Crystal Sky and Marvel Enterprises.

"We are thrilled to be partnering with Avi Arad on this film venture. His creative voice and business acumen will certainly contribute to making Ghost Rider a cutting-edge and exciting film," commented Paul. "Avi has already had tremendous success with Blade (portrayed by Wesley Snipes), and a sequel is to follow later this year. We are very excited to produce Ghost Rider with Avi and his Marvel team - the same team that just finished X-MEN: The Movie and is currently working on Spider-Man: The Movie for 2001."

Arad added, "I met Steven while he was producing Baby Geniuses. I watched and admired as he continually overcame obstacles and naysayers. He produced the film his way, brought the print and advertising budget to the studio, and engineered a most successful release. I couldn't be happier to produce this project with Crystal Sky."

Crystal Sky's Senior Executive Vice President Andrew Hersh will oversee the production for Crystal Sky. Hersh will work closely with Arad and Paul throughout development and production of Ghost Rider.

Crystal Sky Entertainment is a leading independent production company that maintains a first look deal with Paramount Pictures. The company struck paydirt last year with the conception and production of Baby Geniuses. Released through Sony's TriStar Pictures, the film has garnered more than $80 million in domestic revenues. On the heels of that success, the company has been aggressively developing and readying a slate of theatrical projects.

Marvel Enterprises, Inc. is one of the world's most prominent character-based entertainment companies with operations in five divisions: licensing, toys -- via its Toy Biz division, comic book and trade publishing, entertainment and the Internet. Through the ownership of over 4,700 proprietary characters, Marvel licenses its characters in a wide range of consumer products, services and media such as feature films, television, the Internet, apparel, video games, collectibles, snack foods and promotions. Marvel's characters and plot lines are created and developed through the comic book publishing division, which maintains a leadership position in the U.S. and abroad. For additional company information visit Marvel's corporate Web site at http://www.marvel.com.

Except for historical information contained herein, the statements in this news release regarding the Company's plans are forward-looking statements that are dependent upon certain risks and uncertainties, including the Company's potential inability to successfully implement its business strategy, a decrease in the level of media exposure or popularity of the Company's characters resulting in declining revenues from products based on those characters, the lack of commercial success of properties owned by major entertainment companies that have granted the Company toy licenses, the lack of consumer acceptance of new product introductions, the imposition of quotas or tariffs on toys manufactured in China as a result of a deterioration in trade relations between the U.S. and China, changing consumer preferences, production delays or shortfalls, continued pressure by certain of the Company's major retail customers to significantly reduce their toy inventory levels, the impact of competition and changes to the competitive environment on the Company's products and services, changes in technology and changes in governmental regulation. Those and other risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.