....and never buy stock without a prospectus!
====================
MARVEL ESTIMATES 4Q97 RESULTS FROM OPERATIONS
NEW YORK, MARCH 5, 1998 -- Marvel Entertainment Group, Inc. (NYSE: MRV) today reported that based upon preliminary unaudited financial results for the fourth quarter ended December 31, 1997 it expects to report a fourth quarter net loss in the range of $165 - $205 million and a loss for the year ended December 31, 1997 in the range of $265 - $305 million which includes the write-down of goodwill. During the fourth quarter the Company continued to experience the negative effects of its bankruptcy proceedings across all lines of business. Due to the continued market weakness in the trading card industry and the children's entertainment sticker business, the Company has determined that its trading card goodwill has been further impaired and the children's entertainment sticker business has also been impaired. The Company has estimated that this impairment will result in a non-cash charge in the fourth quarter in the range of $115 - $145 million. The Company incurred approximately $3 million in reorganization costs, interest-related expenses of $9 million and other non-operating charges of approximately $7 million in the fourth quarter. The audit of the Company's financial statements by its independent public accountants for the year ended December 31, 1997 has not been completed. The Company's estimated range of net loss could change depending on results of the audit. For the quarter ended September 30, 1997 the Company deconsolidated Toy Biz from its results of operations. Accordingly, the estimates provided do not include the operations of Toy Biz.
Operating losses for the trading card and sticker businesses widened during the fourth quarter when compared to the third quarter ended September 30, 1997 as a result of the lower demand for these types of products, weak performance of various entertainment properties and adverse licensing arrangements associated with a portion of the Company's product offerings. The Company is attempting to re-negotiate such licenses but there can be no assurance these negotiations will be successfully concluded by the Company particularly in view of its bankruptcy proceedings.
During the fourth quarter, the Company restructured its publishing and licensing operations and has narrowed operating losses in these businesses in the fourth quarter as compared to the third quarter ended September 30, 1997.
Management of the Company believes the Company has adequate near-term working capital to fund normal operations until the third quarter of 1998. In connection with the appointment of the chapter 11 trustee for the Company, Chase Manhattan Bank has advised the Company that it is willing to lead a syndicate to make
