HARVEY ENTERTAINMENT, whose roster of animated properties include CASPER,
THE FRIENDLY GHOST, RICHIE RICH, LITTLE AUDREY, and BABY HUEY, has posted a
1998 fourth quarter net loss of $5,869,000, compared to a net income of
$627,000 for the fourth quarter in 1997, and a net loss of $11,238,000 for
the year ended December 31, 1998. Net operating revenues for the year-ended
1998 were a negative $1,569,000, compared to revenues of $15,404,000 in
1997. Meanwhile, the company announced that it has entered into a
definitive Stock Purchase Agreement with Roger A. Burlage, Michael R.
Burns, Paul Guez, Ken Slutsky and The Kushner-Locke Company pursuant to
which Harvey will receive $11.5 million in cash and $5.5 million in common
stock of Kushner-Locke in consideration for newly-issued shares of Harvey's
Series A Convertible Preferred Stock. Says Roger A. Burlage, "We were
attracted to Harvey because of its significant portfolio of world-renown
character assets which have achieved very impressive sales and box-office
performance in several entertainment outlets." Harvey Entertainment has
recently been the subject of rumors involving a possible takeover by Marvel
Entertainment.