Kenneth West, Executive Vice President and CFO, commented: "This event, coupled with Marvel's recently completed exchange offer for its 8% preferred stock, reflects management's commitment to continually improve the Company's capital structure and reduce debt with operating cash flow."

After the repayment, Marvel's cash position stood in excess of $55 million at December 11, 2002 compared to $21.6 million at December 31, 2001. The three-year HSBC term loan was initiated in December 2001 (totaling $37 million) to fund a portion of Marvel's repurchases of its 12% Senior Notes. Next week, Marvel will make a required semi-annual interest payment of approximately $9.1 million on its Senior Notes.

Marvel's early retirement of the balance of the HSBC loan requires the accelerated amortization of all unamortized deferred loan costs which were to be spread over the remaining two years of the loan's three-year term. As a result, Marvel will record a non-cash charge (reflected within interest expense) of approximately $9.1 million in the fourth quarter of 2002 to reflect these costs.

About Marvel Enterprises

With a library of over 4,700 proprietary characters, Marvel Enterprises, Inc. is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused in three areas: entertainment (Marvel Studios) and licensing, comic book publishing and toys (Toy Biz). Marvel facilitates the creation of entertainment projects, including feature films, DVD/home video, video games and television based on its characters and also licenses its characters for use in a wide range of consumer products and services including apparel, collectibles, snack foods and promotions. Marvel's characters are created by its comic book division, which continues to expand its leadership position in the U.S. and worldwide while also serving as an invaluable source of intellectual property. For additional information visit the newly revised Marvel Web site at http://www.marvel.com.

Except for historical information contained herein, the statements in this news release regarding the Company's plans are forward-looking statements that are dependent upon certain risks and uncertainties, including the Company's potential inability to successfully implement its business strategy, a decrease in the level of media exposure or popularity of the Company's characters resulting in declining revenues from products based on those characters, the timing of releases and the decisions to proceed with feature films and TV series based on the Company's characters, the lack of commercial success of entertainment projects based on the Company's characters, the lack of commercial success of properties owned by major entertainment companies that have granted the Company toy licenses, the lack of consumer acceptance of new product introductions, the imposition of quotas or tariffs on toys manufactured in China as a result of a deterioration in trade relations between the U.S. and China, changing consumer preferences, production delays or shortfalls, continued pressure by certain of the Company's major retail customers to significantly reduce their toy inventory levels, the impact of competition and changes to the competitive environment on the Company's products and services, the ability of the Company's licensees to successfully market and sell the licensed products, changes in technology and changes in governmental regulation and the continued financial stability of major licensees of the Company. Those and other risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Marvel assumes no obligation to publicly update or revise any forward-looking statements.