Marvel Enterprises (MVL) addresses common myths about its business (quotes from conf call)

| About: Marvel Entertainment (MVL)
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Below are some comments from Marvel Enterprises (MVL) from its March 7, 2005 conference call with investors.

Myth #1: Marvel’s operating income is mostly from the Spiderman franchise:

….. after coming out of bankruptcy we were highly dependent on "Spider-Man" … [now] income from the "Spider-Man" brand has decreased…in the year 2005, we expect only 15% of our operating income [from Spiderman movies].…the non-movie side of the "Spider-Man" is also estimated to be about 15%…"Spider-Man" as a brand….will provide about 30% of our operating income..

Myth #2: Marvel is a toy company:

…. remember that Marvel was brought out of bankruptcy by a toy company, and in those first couple of years….[we were] highly dependent on the toy business…But since 2001…we've been a very changed company…..for 2005, only 25% of our operating income will come from toy activities.

Myth #3: Marvel is hit-driven:

… as our linearing strategy is continued, the amount of business we do that is non-movie related every year has grown as a proportion of our total business….for 2005 the operating income that we are projecting "Fantastic Four"…only ranges between 10 and 15% of our operating income.

Myth #4: Marvel’s licensing strategy front-loads revenues

…Actually, our licensing consolidation strategy is really a natural evolution from where we started…when we first emerged from bankruptcy…we needed cash and we gave multiple licenses [to different people]….while that helped us with our cash position, it did not help us with retailers …. [now] we'll have a cogent retail strategy with major retailers throughout the year….

(Quotes from the CCBN StreetEvents transcript.)