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Palisades Teams with Diamond

Palisades Officially Names Diamond as Distributor to Hobby Retail Market

Retailers to Benefit from Improved Discounts, Availability, Delivery

Elkridge, MD (September 19, 2005) - Palisades Entertainment, LLC has announced that, effective immediately, it has entered into a partnership with Diamond Comic Distributors, officially naming Diamond as their distributor for the hobby retail market in North America. After more than a decade of working together, both parties agree that this new, closer relationship will significantly benefit specialty retailers and their customers.

"Essentially, the genesis of this partnership came about due to a desire to focus on what each involved party does best," commented Palisades President and CEO, Michael Horn, "Palisades is known for its high quality products, and its attention to detail. And we feel that our energies are best spent concentrated on the continuation of that legacy. Meanwhile, Diamond has a broader reach in terms of marketing, and distribution channels. We're playing to our strengths, and it's a win-win situation for everyone, right down to the end-consumer."

The new, closer relationship between the two companies will result in a greater discount for retailers on Palisades and Factory X products, and will allow Diamond to stock more Palisades product in its inventory. Additionally, the deal will provide Palisades with more real estate in Diamond Previews, allowing consumers and retailers easier access to the Palisades catalog.

"Since 1994, Palisades has created many of the finest action figures, playsets, and collectibles available today," said Diamond Vice President of Purchasing Bill Schanes. "From its Muppets and Buffy the Vampire Slayer toys to its award-winning Alien and Predator statues, they offer products based on a diverse roster of properties that ensure broad consumer appeal. Our closer relationship with Palisades will allow them to focus squarely on what they've consistently shown they do best: create cool toys."

Also effective September 19, Diamond will take over the administration of selected accounts that have previously ordered Palisades product direct from the manufacturer. Affected customers will receive letters from Palisades within the week, detailing the changes to their accounts and how to proceed.

In honor of its new partnership with Palisades, Diamond has announced a special sale on all in-stock Palisades merchandise. Retailers should visit the Retailer Services Area of Diamond's website at https://retailer.diamondcomics.com for additional details.

ABOUT PALISADES ENTERTAINMENT
Palisades Entertainment, LLC designs, manufactures, and markets a variety of collectable products worldwide through sales to retailers and directly to consumers as Palisades Toys and Factory X.

Palisades Toys believes its products are among the most highly detailed and collectable action figures, PolyStone statues, PolyStone mini busts in the world. Palisades Toys' current product portfolio includes The Muppets, Sesame Street, Adult Swim, Invader Zim, Buffy the Vampire Slayer, Alien, Predator, Transformers, Army of Darkness, The X-Files, and others.

Factory X is committed to developing high-quality, cutting edge products that enable fans to feel connected with their most beloved movies and television shows and characters. Factory X's prop replicas are among the most highly-detailed available, and are designed to immortalize the monumental moments and significant characters that made these movies and shows popular. With meticulous attention to detail, Factory X is able to bring these highlights to life. Factory X's current repertoire of licenses includes Buffy the Vampire Slayer, Jeepers Creepers 2, Sleepy Hollow, Underworld, and The X-Files.

Formed in 1994, Palisades Entertainments products are sold throughout the world at various retail outlets including Toys "R" Us, KB Toys, Target, Electronics Boutique, Tower Records, Media Play, Sam Goody, Suncoast Video, Amazon.com and a variety of domestic and international comic shops and specialty retailer stores.. Further information on this and all other Palisades Toys products is available via our company website at: www.PalisadesToys.com and www.FactoryX.com.

ABOUT DIAMOND COMIC DISTRIBUTORS, INC.
Diamond Comic Distributors, Inc. is the world's largest distributor of English-language comic books and related merchandise. Based in Timonium, Maryland, Diamond has strategically located Distribution Centers servicing more than 4,000 specialty retailers worldwide.

Palisades Names Diamond Official Distributor to North American Hobby Retail Trade

Retailers to Benefit from Improved Discounts, Availability, Delivery

September 19, 2005 - After more than a decade of working together to bring quality toys and collectibles to the marketplace, Diamond Comic Distributors has announced a partnership with Palisades Entertainment, LLC, to officially serve as Palisades' distributor for the "Hobby" retail market in North America. Both parties agree that this new, closer relationship will significantly benefit specialty retailers and their customers.

Effective with Palisades product shipping on or after September 19, the terms of the agreement will allow Diamond to increase Palisades' discount to 40% off the SRP on all Palisades products. The improved discount will apply to all new orders, all previously ordered but not shipped products, and all in-stock merchandise as well.

The partnership will also enable Diamond to maintain greater stock availability of Palisades product, and to deliver that product to retailers in the timeliest manner possible. Additionally, it will allow for greater visibility of Palisades' products in Diamond Previews, making these must-have products more readily available - and easier to order - for retailers.

Also effective September 19, Diamond will also take over the administration of selected accounts that previously ordered Palisades product direct from the supplier. Affected customers will receive letters from Palisades with complete details about this change.

"Since 1994," said Diamond Vice President of Purchasing Bill Schanes, "Palisades has created many of the finest action figures, playsets, and collectibles available today. From its Muppets and Buffy the Vampire Slayer toys to its award-winning Alien and Predator statues, they offer products based on a diverse roster of properties that ensure broad consumer appeal."

"Through our partnership with Diamond," commented Palisades President & CEO Michael Horn, "we will be able to better service the Hobby market, and to facilitate their needs. We are taking the necessary steps to focus on our strengths, and to cultivate new and exciting opportunities in the hobby retail realm."

Schanes added, "Most importantly, our closer relationship with Palisades will allow them to focus squarely on what they've consistently shown they do best: create cool toys!"

In honor of its new partnership with Palisades, Diamond has announced a special sale on all in-stock Palisades merchandise. Additional details will be available on the Retailer Services Area of Diamond's website at https://retailer.diamondcomics.com for additional details.

DIAMOND COMIC DISTRIBUTORS, INC. - the world's largest distributor of English-language comic books and related merchandise - is based in Timonium, Maryland, with strategically located Distribution Centers servicing more than 4,500 specialty retailers worldwide.

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