In an effort to maximize shareholder value, The Harvey Entertainment Company announced on June 18, 2001 that it has retained the investment banking firm of Houlihan Lokey Howard & Zukin to explore strategic alternatives and opportunities, following the completion of its pending transaction with Classic Media LLC. Founded in 1970, Houlihan Lokey Howard & Zukin provides a wide range of services including mergers and acquisitions, private placements and other financial advisory services. The firm is ranked among the top 10 financial advisors in U.S. mergers and acquisitions under $500 million.

In an announcement made June 20, 2001, by Michael D. Eisner, chairman and CEO, and Robert A. Iger, president and COO, of The Walt Disney Company, Peter Schneider will step down as chairman of The Walt Disney Studios to start a new Broadway theater production and investment company funded in part by Disney.

DIC Entertainment has signed an exclusive North American home video distribution deal for its extensive library of animation with Lions Gate Home Entertainment. This move marks the first deal for DIC's Worldwide Home Entertainment division since CEO Andy Heyward, along with Bain Capital, purchased DIC back from Disney in November 2000. The first releases on VHS and DVD slated for August are SABRINA, THE ANIMATED SERIES and MUMMIES ALIVE! Other titles set for release include MADELINE, SONIC THE HEDGEHOG, CARMEN SANDIEGO, INSPECTOR GADGET and ACTION MAN.

London-based production company Stink has launched Skunk, a new animation house producing music videos, commercials and short films. The first project for the new company will be three spots for whisky brand Famous Grouse via ad agency Abbott Mead Vickers. Prague-based director Michal Zabka will helm the spots.

Nickelodeon has signed a new SPONGEBOB SQUAREPANTS licensing deal with the fast food chain Burger King, launching on June 11. Big Kids Meal and Kids Meal customers will be able to collect seven SpongeBob toys designed to be used both on land and in the water. The four-week SPONGEBOB SQUAREPANTS promotion will be supported with in-restaurant merchandising, the first kids merchandising created by Draft Worldwide Chicago, as well as Web-based marketing and national kid-directed television advertising.

Chevy's Team Monte Carlo and Warner Bros. Consumer Products have announced a new partnership that will place seven classic Looney Tunes characters on Monte Carlo NASCAR racing cars. All seven characters will be featured on the special Monte Carlo pace car leading the pack at the NASCAR Winston Cup race at Richmond International Raceway on September 8, 2001.

As widely reported today by sources such as the LA TIMES, WIRED MAGAZINE and REUTERS, four people, including Stan Lee Media co-founder Peter Paul, have been indicted by federal prosecutors as part of an alleged $25 million stock manipulation scheme. The defendants face maximum sentences of 15 years in prison if convicted. Paul, former Stan Lee Media executive vice president Stephen Gordon, stock analyst Jeffrey Pittsburg and stock promoter Charles Kusche, have been accused of securities fraud in an attempt to manipulate the price of Stan Lee Media stock.

Hypnotic and Nibblebox have announced they have completed their merger and closed a second round of financing. The new round of financing was led by Hypnotic's initial investor Vivendi Universal and the media group Dresdner Kleinwort Capital, as well as Nibblebox's initial investors, Knowledge Universe, Windsor Media and Entertainment Media Ventures.

Mainframe Entertainment has announced its expansion into the consumer products area with a new strategic alliance with licensing and merchandising veteran Joy Tashjian. Previously with American Champion Marketing Group, Tashjian launched successful consumer product campaigns for many ABC Saturday morning television series. With American Champion shifting its focus away from the traditional entertainment business, Tashjian has formed her own agency, Joy Tashjian Marketing Group, with many of the staff from American Champion.

AtomShockwave has announced that it has laid-off 2/3s of its staff, leaving
approximately 150 people without jobs. In addition, the online entertainment
company will be shutting down its Los Angeles and New York offices. Moreover,
the Netcaster will move away from original content and focus more on
advertising and sponsorship from branded companies like Ford as well as
syndicating its currently produced content and developing a pay format.
However, Romp.com recently attempted a pay format and within a month changed

Eidos plc, one of the world's leading publishers and developers of entertainment software, announced the results for the fourth quarter and year ended March 31, 2001. Net revenue was 22.6 million pounds (US$32.1 million) for the quarter and 143.5 million pounds ($203.8 million) for the full year, a decrease of 26% on the previous year.

Embattled German media group EM.TV has hired Wall Street investment firm Allen & Co. to sell the Henson Co. The top candidates to buy the creator of Kermit are Walt Disney and the management of Henson itself. This action comes only a year after EM.TV purchased Henson from heirs of founder Jim Henson for US$680 million. Rumors have surfaced that the Henson heirs haven't nearly earned that amount due to the plummet of EM.TV's stock price.

New Line Cinema has signed an extensive deal with fast-food giant Burger King to promote THE LORD OF THE RINGS trilogy. The agreement represents the single largest promotional arrangement for New Line and one of the largest programs ever launched by Burger King. The program will span more than 10,000 restaurants worldwide and will run longer than the first film runs in theaters.

The 3DO Company has announced the signing of a development agreement with renowned Santa Monica based entertainment company, Pandemic Studios, the developer of Battlezone II and Dark Reign 2. The first as-yet-unnamed project is scheduled for release in early 2002. According to Pandemic’s president Josh Resnick, the deal will allow his company to expand their development base across multiple gaming platforms and reach 3DO’s mass consumer market. Trip Hawkins, 3DO’s chairman and CEO, commented, "We are thrilled to be working with Pandemic on new and exciting projects.

Following the company’s new development strategy, cHmAn, a Web entertainment company based in Lille, France, has changed its name to TeamcHmAn. While continuing to develop original content for the Web, TeamcHmAn will expand its activities to the production of video games. cHmAn has established itself as a top provider of interactive content with BANJA.com, a game where the level of teamwork players get from each other directly influences their opportunities to gain access to new features. BANJA episode #6 beta version is now online in French and English.

A six-page, 36-panel storyboard from the 1928 Walt Disney cartoon PLANE CRAZY, which marked the first ever appearance of Mickey Mouse, is back on the auction block after failing to sell at auction this past May 19, 2001. The storyboard had been part of an extensive collection of cartoon and comic book art being auctioned to raise funds for the International Museum of Cartoon Art in Boca Raton, Florida. Sale of the storyboard, valued at somewhere between $3.2 million - $3.7 million, was put on hold after the identity of the individual behind an online bid of $800,000 could not be verified.

Take-Two Interactive Software, Inc. has announced record net sales and cash flow for its 2001 second quarter ended April 30, 2001. Net sales for the quarter increased 33% to $93.3 million compared with $70.0 million for the same period a year ago.

Disney has announced the signing of a licensing deal with Kellogg Company, the world’s leading producer of cereal and convenience foods. Available nationwide beginning in May 2001, the adventure of Disney's ATLANTIS: THE LOST EMPIRE will come to life through Kellogg's licensed cereal, free package inserts, free mail-in offers and interactive Website. Atlantean Diving Water Toys will be available in 25 million packages of Kellogg's range of products. A "Search for the Journal," ATLANTIS: THE LOST EMPIRE prequel CD-Rom mail-in offer will appear on 75 million Kellogg's cereal packages.

Havas Interactive, a subsidiary of Vivendi Universal Publishing, has changed its name to Vivendi Universal Interactive Publishing (VU Interactive Publishing). The company is comprised of two operating divisions, Vivendi Universal Interactive Publishing North America (VU Interactive Publishing NA) and Vivendi Universal Interactive Publishing International, each of which is charged with directing the sales, distribution and operating activities in its respective region.

Brilliant Digital Entertainment, Inc., a leading developer of 3D rich media content creation, distribution and ad serving technologies for the Internet, announced a cash sale for substantially all of the assets of The Auction Channel subsidiary to MetroChannels, a division of Rainbow Media Holding Inc., a leading cable programming company.