Stan Lee Media Awarded 5-Year Deal to Build Global Market for Hollywood Christmas Parade; Agreement Includes Broadcast, Music and Merchandising Rights

Business Wire, Sept 12, 2000

Business Editors & Entertainment Writers

LOS ANGELES--(BUSINESS WIRE)--Sept. 12, 2000

SLEE To Webcast First Live Event on Sunday, November 26

Santa Claus will be sharing the spotlight with Stan Lee superheroes in front of Mann's Chinese Theater, following an agreement between Stan Lee Media, Inc. (NASDAQ: SLEE) and the Hollywood Chamber of Commerce for the digital entertainment studio to present what has become a 69-year institution: the Hollywood Christmas Parade.

The five-year deal, commencing with this year's event on November 26, acknowledges the success of SLEE in reaching global audiences via the creation and management of popular franchises across all media platforms.

The non-profit Hollywood Christmas Parade, presented by Stan Lee Media and produced by the Hollywood Chamber of Commerce, is one of the world's largest celebrity processions. A famous Hollywood tradition for 69 years, the Parade brings spectators and broadcast viewers around the globe up close to stars of television, film, music, theater and radio as they deliver personal holiday greetings thanking fans and supporting charitable endeavors during the holiday season of giving.

The venture is the first of its kind for SLEE which, in an era of converging media, sees great potential in transforming a live local televised event into a global multimedia franchise which leverages the brand value of Hollywood and offers an international pre-holiday-window marketing platform for studios, networks, stars and charities.

Under the agreement, SLEE has been granted the exclusive rights to manage the domestic and international broadcast, and has been awarded the exclusive license for all merchandise, print, publishing, Internet and music rights. SLEE will also support the Parade's advertising and sponsorship initiatives; involve major studios in all aspects of the Parade; and assist with the solicitation of well-known talent. While seeking to optimize print publishing rights, SLEE will also manage the traditional broadcast rights, with this year's Parade again being seen locally on KCOP-TV, as well as produce an inaugural webcast of the Parade.

"This is a tremendous opportunity to position Stan Lee Media in the vanguard of convergent media as more people view live events on their computers and participate in chats through interactive television," stated SLEE president and CEO Ken Williams. "We also see the Hollywood Christmas Parade as an underutilized conduit to promote holiday film releases, television shows, performers of all stripes and, of course, a range of charity organizations long embraced by Hollywood."

Stan Lee Media, Inc. (www.stanlee.net) is a digital entertainment studio 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 partnered with international singing sensations, the Backstreet Boys, to produce an animated, superhero version of the group for its www.backstreetproject.com website. The accompanying Backstreet Project/Burger King promotion is among the largest 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. Including, with respect to the SLEE obtaining the exclusive domestic and international broadcast, merchandise, print, publishing and music rights. SLEE will also support the Parade's advertising and sponsorship initiatives; involve major studios in all aspects of the Parade; and assist with the solicitation of well-known talent. While seeking to optimize print publishing rights, SLEE will also manage the traditional broadcast rights, with this year's Parade again being seen locally on KCOP-TV, as well as produce an inaugural webcast of the Parade. 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.