| MARVEL COMPLETES $100 MILLION SHARE REPURCHASE PROGRAM | AND BOARD APPROVES ADDITIONAL $100 MILLION AUTHORIZATION | New York, New York – June 5, 2006 -- Marvel Entertainment, Inc. (NYSE: MVL), a global character-based entertainment and licensing company, announced today that it has repurchased the full $100 million in common stock under its May 2006 authorization and that its Board of Directors has authorized an additional $100 million to be used for the repurchase of the company’s common stock.
Pursuant to the authorization, Marvel may purchase shares from time to time through May 31, 2007 in the open market or through privately negotiated transactions. Purchases will be funded from working capital or from borrowings. Marvel has no obligation to repurchase shares under the authorization, and the timing, actual number and value of shares to be purchased will depend on many factors, including the performance of Marvel’s stock price, its cash flow and market conditions. Marvel’s Vice Chairman, CEO and the company’s largest shareholder, Isaac Perlmutter, has agreed to not sell any shares while the repurchase program is in place.
Marvel’s Chairman, Morton Handel, commented, “Given our continued confidence in Marvel's ability to generate strong levels of free cash flow as well as the modest capital needs of our unique business model, the Board continues to believe that share repurchases are an excellent use of capital that should enhance shareholder value over the long-term.
“Since the commencement of our share repurchase programs in July 2004, Marvel has repurchased 33.4 million shares for an aggregate purchase price of $600 million, or approximately $17.95 per share. Our common stock repurchases have reduced Marvel’s weighted average diluted shares outstanding to approximately 85.0 million shares, providing what we believe is an important and recurring benefit to our shareholders.”
|  | | FOR MORE INFORMATION CONTACT: | | David Collins
Jaffoni & Collins
212.835.8500
mvl@jcir.com
Richard Land
Jaffoni & Collins
212.835.8500
mvl@jcir.com
Rob Steffens
Marvel Entertainment
212.576.4068
rsteffens@marvel.com
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With a library of over 5,000 characters, Marvel Entertainment, Inc. is one of the world's most prominent character-based entertainment companies. Marvel's operations are focused on utilizing its character franchises in licensing, entertainment, publishing and toys. Areas of emphasis include feature films, DVD/home video, consumer products, video games, action figures and role-playing toys, television and promotions. Rooted in the creative success of over sixty years of comic book publishing, Marvel's strategy is to leverage its character franchises in a growing array of opportunities around the world.
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Except for any historical information that they contain, the statements in this news release regarding Marvel's plans are forward-looking statements that are subject to certain risks and uncertainties, including a decrease in the level of media exposure or popularity of Marvel's characters, financial difficulties of Marvel‚s licensees, changing consumer preferences, movie- and television-production delays and cancellations, toy-production delays or shortfalls, continued concentration of toy retailers, toy inventory risk, the imposition of quotas or tariffs on products manufactured in China and a decrease in cash flow even as Marvel remains indebted to its noteholders. These and other risks and uncertainties are described in Marvel's filings with the Securities and Exchange Commission, including Marvel's Annual Reports 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. |
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