DIC Entertainment Creates Licensee Partnership Between McDonald's(R) McKids(R) Brand and Cornerstone Group in Asia

DIC Entertainment Creates Licensee Partnership Between McDonald's(R) McKids(R) Brand and Cornerstone Group in Asia

Cornerstone Commits to Multi-Million Dollar Deal

Cornerstone's China Retail Management Subsidiary to Develop McDonald's McKids Fun, Active Play Toys, Videos and Apparel line in Asia

BURBANK, Calif., Jan. 12 /PRNewswire/ -- DIC Entertainment (DIC), a fully-integrated brand management company, today announces that McDonald's Corporation has entered into an agreement naming Cornerstone Group's China Retail Management (CRM) subsidiary the "Master Licensee" for McDonald's(R) McKids line across Asia, excluding Japan and India. The multi-million dollar deal is the first major international initiative undertaken as part of DIC's new role as global consumer products and entertainment agent for McDonald's Corporation.

CRM will work with DIC and McDonald's to develop the retail consumer product line for Asia, and will design, produce, market and distribute McDonald's McKids(R) product lines that support McDonald's "balanced, active lifestyles" brand strategy.

The deal follows the June 20, 2005 announcement that McDonald's had named DIC as Worldwide Licensing Agent for active play toys, entertainment and apparel. DIC is currently developing comprehensive new programs and products for McDonald's McKids(R) brand and a line of vintage McDonald's apparel to launch in 2006.

"This agreement signifies a substantial step in our relationship with McDonald's as their global consumer products and entertainment brand manager. The consumer retail market in Asia continues to flourish, and we anticipate strong interest in the new McKids line of active play toys, videos and apparel, as well as tremendous growth and success in this territory," said Andy Heyward, Chairman & CEO of DIC. "Our deal with CRM also demonstrates DIC's growing success in expanding its brand management skills beyond its traditional markets, and we expect this area to be an increasingly important part of our business going forward."

"We look forward to the creative energy and innovative thinking that CRM brings to the table," said Jackie Woodward, Vice President for McDonald's Global Marketing. "This partnership will open up new opportunities to create a fun, active play product line with the quality and value that parents have come to expect from McDonald's."

"McDonald's is one of the most popular and trusted brands in the world with loyal customers throughout Asia," comments Jeff Hsieh, Chairman, CRM. "We are pleased to play an integral role in developing and distributing new and exciting products to retail that deliver on McDonald's commitment to promoting balanced active lifestyles."

CRM also distributes licensed product for Disney, Warner Bros. and exclusively operates Coca-Cola Stores in China.

About DIC Entertainment:

DIC Entertainment, a leading children's media company, is a full-service studio dedicated to creating, developing, producing, distributing, marketing and merchandising family-based intellectual properties. DIC has distinguished itself by building one of the largest libraries of western-style animation with approximately 2,800 half-hours of renowned programming, including Trollz(TM), Inspector Gadget(TM), Strawberry Shortcake(TM), Sabrina(TM), Madeline(TM), Liberty's Kids(TM), Where On Earth Is Carmen Sandiego?(TM), Sonic The Hedgehog(TM), Super Mario Bros(TM) and Care Bears(TM). In 2003, the company launched the DIC Kid's Network, a unique syndicated programming block designed to meet core FCC requirements and the only network for kids that reaches effectively 98% of U.S. households on over 300 stations. As a pre-eminent supplier of kid's programming worldwide, DIC has developed strategic partnerships with key domestic and international broadcast partners throughout North America, Europe, Asia, Latin America, Africa and Australia. DIC is headquartered in Burbank, California with international offices in Paris, London and Cologne.

About McDonald's Corporation:

McDonald's is the leading foodservice retailer with more than 30,000 local restaurants serving quality food to nearly 50 million people in more than 100 countries each day. Approximately 70% of McDonald's restaurants worldwide are owned and operated by independent, local businessmen and women.

McKids is an active lifestyle brand for kids featuring apparel, footwear, active play toys and games, videos/DVDs and other fun products.

About Cornerstone Group:

The Cornerstone, group through its subsidiary China retail management Ltd ("CRM"), has been distributing toys in China under the Beiliwei ("Playwell") banner since the early 1990's. CRM operates over 500 retail outlets and 11 Distribution Centers strategically located in China. This network of outlets represents one of the most complete penetrations of the Chinese consumer products market. CRM manages Disney Corners and distributes Disney licensed products, as well as other well-known toy branded products such as Wild Planet, Sassy, Radical Games, Warner Brothers licensed properties (e.g. Batman Begins, Harry Potter, Superman etc.). CRM also exclusively operates Coca-Cola Stores in China.

Source: DIC Entertainment

CONTACT: Michelle Orsi of Three.Sixty Communications, +1-310-372-2309,
michelle@360-comm.com, for DIC Entertainment; or Lisa Howard of McDonald's
Corporation, +1-630-623-5044, lisa.howard@mcd.com

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