Weekly E-News, Issue #144, January 17, 2006

Marc Ecko Acquires Avirex

Marc Ecko Enterprises acquired the Avirex brand and its related trademarks inall existing product categories?including apparel, outerwear, leather, andaccessories, for all countries other than Europe and Japan?from Avirex Ltd.Terms of the acquisition were not disclosed, but it also grants the companyrights to Avirex Ltd.?s license with Kids Headquarters for boys? apparel andwith Caccia Fashions Inc. for the Canadian market. MEE anticipates announcingnew licenses for additional product categories in the near future. MarketingManagement Group, Inc., initiated and negotiated the transaction on behalf ofAvirex Ltd.

4Kids and AKC Extend Partnership

4Kids Entertainment, Inc., and the American Kennel Club signed a multi-yearextension of their worldwide representation agreement. This renewed partnershipwill enable 4Kids and the AKC to continue building the brand with plans toexpand into such categories as pet cleaning products, pet safety products, andcollectible artwork.

Everlast Signs ?Sleeper? of a Deal

Everlast Worldwide Inc. signed an agreement with H Best Ltd. for a line ofmen?s/boys? underwear and men?s loungewear and sleepwear under its 2(x)istdivision. First products will launch this year at sporting goods chains anddepartment stores. In other news, the company renewed and expanded itslicensing agreement with Tomen America Inc., in which Tomen will continue toproduce men?s, women?s, and children?s apparel, as well as exercise equipmentincluding aerobic fitness products, treadmills, and weight-lifting equipment inJapan. Tomen also will design a new line of men?s and women?s underwear.

HIT Strengthens Position in Latin America

HIT Entertainment Ltd. is stepping up its presence in Latin America, signing aseries of broadcast, video, publishing, and consumer products deals. Pingu willair on TV Cultura in Brazil, while the Children?s Favourite series ofcompilation video and DVD, which includes episodes of Barney, Bob the Builder, Rubbadubbers,Angelina Ballerina, Pingu, and Thomas & Friends, will be available for thefirst time in Mexico and Central America from Tycoon Entertainment. Other dealsinclude a deal with ST2 in Brazil for Portuguese language storybooks, coloringbooks, and activity books, and a renewed deal with Rhein Chile for Barneycrayons and markers for Chile. Adhesivos Internacionales will create bandagesfeaturing images of Barney for Mexico and Central America, and Top Cau?s BarneyEaster Eggs will be seen on shelf throughout Brazil. Argentina will have a newline of Bob the Builder preschool dinnerware and lunch boxes via Daysal S.R.L,while Pharma Express will release a new line of Barney apparel in Colombia.

Simon & Schuster Expands Partnership with VIZ Media

Simon & Schuster will expand its relationship with VIZ Media by handlingdomestic sales for all the lines in its book division. Simon & Schusterwill use its sales and distribution division to further raise the visibility ofthe manga genre and continue to grow revenue streams from traditional bookretailers, as well as from newly emerging channels.

McDonald?s Names McKids Partner Across Asia

McDonald?s Corporation named Cornerstone Group?s China Retail Managementsubsidiary the master licensee for its McKids line across Asia, excluding Japanand India. The multimillion-dollar deal is the first major internationalinitiative undertaken as part of DIC?s new role as global consumer products andentertainment agent for McDonald?s Corporation. CRM will work with DIC andMcDonald?s to develop the retail consumer product line for Asia, and willdesign, produce, market, and distribute McDonald?s McKids product lines thatsupport McDonald?s ?balanced, active lifestyles? brand strategy.

Waverly Embraces Licensing Model with New Deal

Waverly Home Fashions converted its existing business into a licensing modelvia a long-term licensing deal with Ellery Homestyles LLC. The agreement givesEllery Homestyles the right to manufacture branded home fashions productsincluding bedding, window treatments, and other home categories utilizingWaverly?s design archives. Waverly will continue to concentrate on its corecompetencies of design and marketing for the Waverly brand, in addition tocontinuing its various licensing partnerships in other key product categories.Ellery Home Brands Company will utilize its expertise in sourcing and executionto further increase the multichannel distribution of the home fashion business.

Classic Kids? Brand Marks 25th Anniversary

FremantleMedia Licensing Worldwide is revamping the nostalgia kids? brand,Dangermouse, in preparation for its 25th anniversary this year. As part of theanniversary celebration, FLW developed a new logo, and creative and signed onnew partners including TDP Textiles for men?s nightwear and underwear; BravadoInternational for T-shirts and fashion tops for record retailers; and SamuelEden for adults? and children?s socks. In addition, FLW renewed its agreementwith The Big Badge Co. to produce Dangermouse pin badges, which will bedistributed at retail and through banks and corporate offices to raise moneyfor the charitable brain injury association, Headway, throughout 2006. Goingforward, FLW will extend the brand into women?s apparel, plush, collectibles,gifts, gadgets, and fine arts, and is reviewing the use of original cellanimation from Brian Cosgrove, the creator of Dangermouse.

Children?s Imaginations Celebrated in New Book Series

Paddywhack Lane LLC and Penguin Young Readers Group partnered on a multiplebook publishing deal for a new series of Paddywhack Lane story and activitybooks. The first two books are due in fall 2006, with additional titles tofollow. The books were created by Sandy Fuller and celebrate the imaginativeworld of children at play. The books will be published by Grossett &Dunlap, an imprint of Penguin Young Readers Group.

Playboy Enters Hong Kong Market

Playboy Enterprises, Inc., opened its first freestanding Playboy ConceptBoutique in Hong Kong in Causeway Bay?s ultra-modern Fashion Walk area. The1,300-square-foot upscale shopping destination is owned and operated underlicense by Speedplan. The store will offer Playboy apparel, jewelry,accessories, and swimwear in addition to the new high-end ?White Label?lingerie collection. The next freestanding Playboy store, a 2,500-square-footstore in the Mid-Valley Mall in Kuala Lumpur, one of Malaysia?s premier fashionareas, will open in early 2006.

Quilting Event to Benefit Breast Cancer Research

The KN Karen Neuburger lifestyle brand and Quilting Treasures by Cranston aresponsoring a quilt block event to raise money for The Breast Cancer ResearchFoundation. Individuals are invited to submit quilt blocks directly to Cranstonbetween January 1 and May 1, 2006. The finished blocks will be 10 inches squareand can be either pieced or appliqu