Media Arts Group Reports 53% Net Sales Growth and 50% Increase in Net Income for 1999 Fiscal Year

Business Wire, May 5, 1999

                  CONSOLIDATED FINANCIAL INFORMATION
               (In thousands, except per share amounts)

                             Three Months Ended        Year Ended
                             ------------------    -----------------
                                  March 31,             March 31,
                               1999       1998       1999       1998
                               ----       ----       ----       ----

Net sales                  $  31,368  $  25,441  $ 126,322  $  82,650
Cost of sales                 10,915      8,408     42,061     27,220
                            --------   --------   --------   --------
 Gross profit                 20,453     17,033     84,261     55,430
                            --------   --------   --------   --------
Operating expenses
 Selling and marketing         8,418      6,678     33,192     19,781
 General and administrative    5,293      4,027     21,841     15,457
                             --------   --------   --------   --------
  Total operating expenses    13,711     10,705     55,033     35,238
                            --------   --------   --------   --------
Operating income               6,742      6,328     29,228     20,192
Interest income (expense)         83       (174)       504     (1,612)
Gain on sale and leaseback        --         --         --        997
Foreign exchange
 income (losses)                  --         --         --        (93)
                            --------   --------   --------   --------
Income before taxes            6,825      6,154     29,732     19,484
Provision for income taxes     2,519      2,272     11,380      7,209
                            --------   --------   --------   --------
Income before
 extraordinary loss            4,306      3,882     18,352     12,275
Extraordinary loss                --     (1,296)        --     (1,296)
                            --------   --------   --------   --------
Net income                 $   4,306  $   2,586  $  18,352  $  10,979
                            ========   ========   ========   ========

Income before
 extraordinary
 loss per common
 share (basic)(a)          $    0.33  $    0.33  $    1.42  $    1.10
Extraordinary loss
 per common share                 --      (0.11)        --      (0.12)
                            --------   --------   --------   --------
Net income per common
 share (basic)(a)          $    0.33  $    0.22  $    1.42  $    0.98
                            ========   ========   ========   ========

Income before
 extraordinary loss
 per common share
 (diluted) (a)             $    0.32  $    0.30  $    1.34  $    1.04

Extraordinary loss
 per common share                 --      (0.10)        --      (0.11)
                            --------   --------   --------   --------
Net income per common
 share (diluted) (a)       $    0.32  $    0.20  $    1.34  $    0.93
                            ========   ========   ========   ========


(a)  Net income for the year ended March 31, 1998 includes a one-time
     after tax gain of $628,000 ($0.06 per share basic and diluted)
     relating to the renegotiation of the Company's San Jose
     facilities lease.

                                              March 31,    March 31,
                                                1999         1998
                                             ----------   ----------
Cash and cash equivalents and investments    $   6,361    $  16,401
Accounts and licensing receivable               22,354       15,841
Inventories                                     16,683        9,094
Working capital                                 41,785       30,676
Total assets                                    68,146       51,339
Long-term liabilities less current portion       2,108        1,200
Total stockholders' equity                      51,791       35,119