4Kids Entertainment Announces Second Quarter Results

Business Wire, August 14, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 14, 2002

4Kids Entertainment, Inc. (NYSE: KDE), today announced results for the second quarter ended June 30, 2002.

Net revenues for the second quarter of 2002 totaled $8,178,372, compared with $9,148,269 in the second quarter of 2001. Net income for the quarter was $1,227,332, or $.09 per common share diluted, compared with net income of $3,259,459, or $0.24 per common share diluted, for the second quarter of 2001. The diluted weighted average common shares outstanding for the second quarter ended June 30, 2002 were, 13,653,166 compared with 13,326,392 for the same period a year ago.

Net revenues for the six months ended June 30, 2002 were $15,139,208, compared with net revenues of $21,411,977 in the first half of 2001. Net income for the first six months of 2002 totaled $2,781,013, or $.20 per common share diluted, compared with net income of $8,548,952, or $0.64 per common share diluted, for the same period last year. The diluted weighted average common shares outstanding for the six months ended June 30, 2002 were 13,646,168 compared with 13,279,593 for the prior year's comparable period.

Commenting on the second quarter, Al Kahn, Chief Executive Officer, said, "Our second quarter results were in line with our expectations. Interest in Yu-Gi-Oh! continues to build, as demonstrated by Yu-Gi-Oh! becoming the No.1 rated children's series on network television. Yu-Gi-Oh! has generated enthusiasm among kids across the country, fueling the demand for licensed products and merchandise. Konami, Upper Deck and Mattel experienced success with their initial release of video games, cards and toys in the second quarter. We expect sales of Yu-Gi-Oh! games, cards and toys to accelerate in the second half of the year. In addition, 4Kids Home Video will release the first two Yu-Gi-Oh! home videos on September 24, 2002 on DVD and VHS formats with more titles to be released in the fourth quarter.

Our launch of the Fox Box is on schedule and the 4Kids Entertainment line-up will begin airing on September 14, 2002. We had a better than expected upfront sale of the advertising time available during the four-hour FoxBox block. On September 1, 2002 at 7:00 pm, we will air a half-hour prime-time special on Fox introducing kids to the FoxBox line-up. After Labor Day, Toys R' Us will launch an in-store FoxBox giveaway to build awareness of our September launch," continued Kahn.

"Pokemon is poised to continue as an important contributor supported by Miramax's upcoming launch of the fourth Pokemon movie and the introduction of 52 new episodes on Kids! WB for the 2002-2003 season " said Al Kahn.

The Company's television series Cubix has performed well in the UK, with television ratings showing very strong interest from kids ages 4 to 15. Cubix made its UK terrestrial television debut on CBBC in June, entering the UK's Top 10 children's programs as the country's highest-rated children's animated series. Toys R' Us continues to expedite the roll out of Cabbage Patch Kids to all its stores as planned for the year.

"We are looking forward to our launch of the FoxBox and its great new line-up. We are seeing strong interest from various marketing partners and licensees with respect to the scheduled FoxBox properties including, Teenage Mutant Ninja Turtles, Kirby, Ultimate Muscle, UltraMan and Fighting Foodons. We are better positioned to grow and are much more diversified than ever before," concluded Kahn.

About 4Kids:

Headquartered in New York City with international offices in London, 4Kids Entertainment, Inc. (NYSE: KDE) is a global provider of children's entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries, provides domestic and international merchandise licensing and product development, television, film, music and home video production and distribution, media buying and planning and website development. For further information, please visit the company's Web site at www.4kidsEnt.com.

This press release contains forward-looking statements. Due to the fact that the Company faces competition from toy companies, motion picture studios and other licensing companies, and the uncertainty of public response to the Company's properties, actual results or outcomes may differ materially from any such forward looking statements.

This release and prior releases are available on the Company's Worldwide Web site at www.4KidsEnt.com.

You may register to receive 4Kids Entertainment's future press releases or to download a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at www.kcsa.com.

                       4Kids Entertainment, Inc.
                     Summary Financial Information
              For the Second Quarter and Six Months Ended
                        June 30, 2002 and 2001
                              (Unaudited)

                             For the                 For the
                       Three Months Ended        Six Months Ended
                     ----------------------- -------------------------
                       June 30,    June 30,     June 30,     June 30,
                         2002        2001         2002         2001
                     ----------- ----------- ------------ ------------
NET REVENUES         $8,178,372  $9,148,269  $15,139,208  $21,411,977
EXPENSES              6,534,121   4,856,890   11,344,928    9,719,482
NET INCOME            1,227,332   3,259,459    2,781,013    8,548,952
PER SHARE AMOUNTS
  Basic earnings per
   share                  $0.10       $0.27        $0.22        $0.71
  Diluted earnings
   per share               $.09       $0.24        $0.20        $0.64
Weighted average
 common shares
  outstanding -
   basic             12,590,791  12,104,694   12,583,566   12,092,594
Weighted average
 common shares
  outstanding -
   diluted           13,653,166  13,326,392   13,646,168   13,279,593