4Kids Entertainment Seals Deal for Fox Kids Block

[Vin]

Toon Zone News has learned from a press release issued today by 4Kids Entertainment, that they have won the bidding to program Fox Kids starting fall 2002 and will pay approximately $25.3 million each broadcast season.

Kids' WB! shows like "Pokemon," "Cubix" and "Yu-Gi-Oh!," all of which are owned by 4Kids Entertainment, could end up heading to the new Fox Kids come fall. This has yet to be confirmed, but we will looking for some type of confirmation. Other 4Kids shows which may air on Fox Kids come fall are "Tama and Friends," "Ultraman Tiga," and "Kinnikuman." More information will be released within the next few weeks and Toon Zone News will continue to keep you updated on any further developments. The following is information released by the company today:

"4 Kids Entertainment Inc. (the "Registrant"), a New York corporation, is filing this Current Report on Form 8-K to report that it has entered into a multi-year agreement with Fox Broadcasting Company to lease the television network's Saturday morning programming block.

Beginning with the September 2002 broadcast year, 4Kids Entertainment will provide all programming content for Fox's Saturday morning broadcast block, which airs from 8am to 12pm ET/PT (7am to 11am CT). Under the terms of the agreement, 4Kids will also have the right to retain all revenue from the network advertising sales during the four-hour time period. The agreement has an initial term of four broadcast years, with 4Kids having the option to extend the term for up to two additional broadcast years. 4Kids will pay a license fee of approximately $25.3 million for each broadcast year during the initial term of the agreement. The agreement provides for 50% of the fee for the first broadcast season to be paid currently, with the balance of the fee for the first broadcast season to be paid in four equal installments in September, December, February and April of the broadcast year. Fees for each subsequent broadcast year are payable 50% in the June preceeding the beginning of the broadcast year with the balance of the fee for the broadcast year payable in four equal installments in September, December, February and April. The agreement further provides that, at 4Kids option, up to $10.3 million of each year's fee may be paid in 4Kids common stock."