Marvel 4th Qtr Results

NEW YORK--(BUSINESS WIRE)--Feb. 23, 2000--Marvel Enterprises, Inc. (``Marvel'') (NYSE:MVL - news) today reported financial results for the fourth quarter and year-ended December 31, 1999.

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MARVEL ENTERPRISES, INC. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data)

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Three Months Ended Twelve Months Ended

December 31, December 31,

1999 1998 1999 1998

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Net sales $92,995 $75,715 $319,645 $232,076

Cost of sales 45,026 40,220 150,858 127,978

Gross Profit 47,969 35,495 168,787 104,098

Selling, general and administrative expenses 43,255 36,210 124,596 97,135

EBITDA (1) 4,714 (715) 44,191 6,963

Depreciation and amortization 6,158 5,760 18,078 19,332

Amortization of goodwill and other intangibles 6,496 6,505 25,857 7,091

Operating income(loss) (7,940) (12,980) 256 (19,460)

Interest expense, net (7,884) (9,105) (32,077) (9,440)

Other income, net 1,160 676 4,043 676

Loss before income taxes(14,664) (21,409) (27,778) (28,224)

Income tax provision 2,486 7,160 4,482 4,386

Loss before extraordinary expense (17,150) (28,569) (32,260) (32,610)

Extraordinary expense, net of tax -- -- 1,531 --

Net loss (17,150) (28,569) (33,791) (32,610)

Less: preferred dividend requirement 3,662 3,380 14,220 3,380

Net loss attributable to common stock (20,812) (31,949) (48,011) (35,990)

Basic and diluted loss per share from continuing operations ($0.62) ($0.95) ($1.39) ($1.23)

Basic and diluted loss per share after extraordinary expense ($0.62) ($0.95) ($1.43) ($1.23)

Common shares outstanding 33,557 -- 33,557 --

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(1) ``EBITDA'' is defined as earnings before extraordinary items, interest expense, taxes, depreciation and amortization. EBITDA does not represent net income or cash flow from operations as those terms are defined by generally accepted accounting principles and does not necessarily indicate whether cash flow will be sufficient to fund cash needs.

Commenting on the Company's performance, Marvel President and CEO, Peter Cuneo, said, ``Marvel's strong 1999 financial performance reflects our first full year of combined Marvel and Toy Biz operations and was highlighted by significant achievements in a range of areas that have repositioned Marvel on firm ground. Progress in 1999 included the formation of a senior management team with proven, relevant industry experience, the creation and adoption of a revised business strategy including plans for the Internet, the creation of a sound financial platform, including the divestiture of non strategic assets, and the initiation of proactive operating strategies in all units, supported by the commencement of Marvel's first ever brand management discipline, aimed at linking all activities under the Marvel banner with the goal of deriving synergistic benefits.

``As we look forward in 2000 and beyond, we have many reasons for optimism, including the Company's strongest-ever line-up of entertainment projects, including five major motion pictures slated for release over the next three years. This film slate

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