4Kids Launches 4Kids Home Video Business; Joins With FUNimation For Exclusive Home Video Distribution

Business Wire, May 13, 2002

Business & Entertainment Editors

NEW YORK--(BUSINESS WIRE)--May 13, 2002

4Kids Entertainment, Inc. (NYSE: KDE) announced today that it has established 4Kids Entertainment Home Video to produce and market home videos (both VHS and DVDs) in the United States for various properties represented by 4Kids.

4Kids Entertainment Home Video has appointed FUNimation Productions, Ltd. the exclusive distributor in the United States of 4Kids Home Videos for 4Kids properties Yu-Gi-Oh!(TM), Cubix(TM)- Robots for Everyone, Cabbage Patch Kids(R)and Tama and Friends(TM).

4Kids Entertainment Home Video plans to release the first Yu-Gi-Oh! home videos this fall, followed by the first CUBIX - Robots for Everyone and Cabbage Patch Kids home videos in the fourth quarter of 2002 and Tama and Friends home videos in the second quarter of 2003. "The home video product today has become an important driver for children's properties and a necessary element in the retail merchandise mix," said Al Kahn, Chairman and CEO of 4Kids Entertainment. "4Kids Entertainment Home Video will allow us to better market and support our properties. We are also pleased that 4Kids Home Videos will be distributed by FUNimation, a leading distributor of children's home video entertainment."

"We are enthused about this venture with 4Kids Entertainment, one of the leading producers of high-quality children's programs," said Gen Fukunaga, President of FUNimation. "This further enhances FUNimation's position in both children's and anime home video distribution." FUNimation produces and distributes home videos for three animated series airing on Cartoon Network: Dragon Ball Z(R), Dragon Ball(R) and Yu Yu Hakusho: Ghost Files(TM). FUNimation has sold more than 11 million Dragon Ball Z home videos.

Yu-Gi-Oh! is an action-adventure animated series about Yugi, a high school student who plays a trading card game where he battles opponents with Virtual Reality Monsters. Yu-Gi-Oh! is one of the top-rated television programs in key kids' and boys' demographics.

CUBIX is a 3D-CGI animated series that follows the action-packed adventures of Connor, a 13-year-old robot whiz kid, and CUBIX, his amazing robot pal, who live in a futuristic city called "Bubble Town" where the majority of the residents are robots. CUBIX, 4Kids' first original animated series, premiered on Kids' WB! in August of 2001 and has been renewed for a second season.

Cabbage Patch Kids is a unique toy brand that developed into a cultural craze in the 1980s. Nearly 20 years after their original launch, the new Cabbage Patch Kids were launched Nov. 17, 2001 at the Toys 'R Us flagship store in Times Square. Just like the originals, the one-of-a-kind Cabbage Patch Kids are not purchased, they are "adopted." Each "kid" comes with a name, a birth certificate and adoption papers, which includes an oath to promise to be a good parent. Cabbage Patch Kids are available only at Toys 'R Us in Times Square - and will be available nationally at Toys 'R Us this fall.

Tama and Friends is a syndicated animated show that follows the adventures of Tama, an adorable white kitten who embarks on fun-filled adventures with his dog and cat buddies in the animated series.

About 4Kids Entertainment

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.4kidsEntertainment.com.

About FUNimation Productions

FUNimation Productions, Ltd. is a full service brand management company with in-house production, licensing, Internet, and home video distribution. FUNimation produces Dragon Ball and Dragon Ball Z, top-rated series on Cartoon Network; Yu Yu Hakusho: Ghost Files, the lead series on Cartoon Network's Adult Swim Action Block; Lupin the 3rd(tm), one of the longest running anime classics; Fruits Basket(tm), based on the top selling comic book in Japan; and Blue Gender(tm), a sci-fi anime. For additional information and images, contact Mark Wright at FUNimation at 817-788-0627 x245 or mark.wright@funimation.com.

This press release contains forward-looking statements. Due to the fact that 4Kids Entertainment Inc. 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.4KidsEntertainment.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.