Marvel assumes
no obligation to publicly update or revise any forward-looking
statements.29
========== ===========
Weighted average number of basic shares
outstanding 104 ,561 108,392
========== ===========

Diluted earnings per share attributable to
common stock $0. Of
note , Marvel's growing global consumer brand supported a 100% increase
in international licensing revenue contributions, to $28 million in
2004. Spider-Man movie toy sales were
$14. The following are expected to be some of the key
factors in Marvel's 2005 financial performance and are reflected in
the Company's financial guidance range. 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.10 $1. 546,500 469,450
--------------- -------- ------

Total liabilities and stockholders'
equity.

garen hobbes

Marvel Enterprises, Inc.5 million from the prior-year period primarily due to a
transition from Marvel-produced action figures and accessories
based on the Lord of The Rings franchise and Spider-Man 2
movie in 2004, to lines produced by our master toy licensee in
2005 .9 million in Q1
2005 compared with sales of $44. (1)
-------------------------------- --------------------------------------

Marvel Character Animated TV Projects in Development
----------------------------------------------------------------------
Partnership with Antefilms Distribution to produce an original
animated television series based on the Fantastic Four. (1)
----------------------------------------------------------------------
(1) Represents a change from the previously supplied schedule
TBD = To Be Determined

2005 Video Game Release Schedule
(Release dates are controlled by Publishing partners)
-------- --------------------------------------------------------------
Publisher Character Release
--------------------------------------------------------------------- -
Activision Spider-Man + Friends Released Q1 2005
--------------------- -------------------------------------------------
Fantastic Four Q2 2005
----------------------------------------------------------------------
Ultimate Spider-Man Q3 2005
------------------------------------------- ---------------------------
X-Men Legends II Q4 2005
---- ------------------------------------------------------------------
Electronic Arts Marvel versus EA Q4 2005
----------------------------------------------------------------------
THQ Inc Punisher Released Q1 2005
---------------------- ------------------------------------------------
Vivendi Universal Hulk: Ultimate Destruction Q3 2005
----------------------------------------------------------------------

Marvel Enterprises, Inc.

2005 Guidance and Drivers: Marvel is maintaining its previously
provided financial guidance ranges for 2005.7 million in
Q4 2004 primarily due to significantly improved contributions
from, and the consolidation of, the joint venture with Sony
for Spider-Man movie merchandising , as well as contributions
from international licensing operations.9 million in Q4 2004 as Marvel 's new
international offices continued to leverage global marketing
momentum.

(2) 2004 full year net income and EPS attributable to common stock
include one-time charges of approximately $12 million associated
with the early redemption in June 2004 of the Company's 12% Senior
Notes due 2012. Marvel assumes
no obligation to publicly update or revise any forward-looking
statements.

MARVEL ENTERPRISES, INC. 153,437 120,809
Senior notes -- 150,962
Accrued rent 165 636
Deferred reserve, non-current portion 14,712 --
--------------- ---------- ----
Total liabilities.

ecard hina

Segment Net Sales/Operating income
(in thousands)
------------------------------------------------------------------ ----
Three Months Ended
March 31,
2005 2004
----------------------------------------------------------------------
Licensing: Net Sales $71,226 $46,860
------------------------------------- ---------------------------------
Operating Income (1) 39,696 35 ,941
----------------------------------------------------------------------
Publishing: Net Sales 22,418 19,644
-------------------------------------------------- --------------------
Operating Income 8,885 7,310
--- -------------------------------------------------------------------
Toys: Net Sales 10,500 55,822
-------------------------------------------------------- --------------
Operating Income 4,377 18,166
--------- -------------------------------------------------------------
Corporate Overhead: (5,002) (4,116)
------------------------------------------------------------- ---------
TOTAL NET SALES $104,144 $122,326
-------------- --------------------------------------------------------
TOTAL OPERATING INCOME 47,956 57,301
------------------------------------------------------------------- ---
(1) Includes the impact of a $10 million, one-time charge related to
the settlement of litigation with Stan Lee. Spider-Man 2 movie toy sales were $1.2 million in gross sales
recognized as a result of the consolidation of the JV,
compared to the year ago period in which Marvel's portion of
the JV's results of $2.1 million in the prior-year period.5 million per year.

2005 Guidance and Drivers: Marvel reiterated its previously
provided 2005 financial guidance ranges even though the company has
added incremental costs for the expense of options in the second half
of 2005 that are required by FASB Statement Number 123R.

Marvel cautions investors that inherent variability in the timing
of license opportunities and entertainment events, the timing of their
revenue recognition, and their relative success contribute to
sequential and year-over-year variability in its interim financial
results and could have a material impact on quarterly results as well
as Marvel's ability to achieve the financial performance included in
its financial guidance.

This category lists sites about comics , including comic books, comic strips, and web-comics.

theophrastus botanist

This charge is in addition to
previously recorded accruals for this litigation.com

Q1 2005 Highlights:

Excluding the one-time charge, Q1 2005 operating results would
have exceeded the Company's guidance ranges and operating
margins would have been 56% compared to 47% in the prior year
period.1 million. In addition, the previously anticipated $4.

The benefit of interest income versus interest expense
incurred in 2004, coupled with a lower average fully diluted
share count, reflecting stock repurchases in 2004.27 $0.

Marvel Studios
(Development and release dates are controlled by Movie Studios)
--------------------------------------------- -------------------------

Marvel Character Feature Film Line-Up For 2005
----------------- -----------------------------------------------------
Film/Character Studio/Distributor Status
----------------------------------------------------------------------
Elektra New Regency / Fox Released Jan.
----------------------------------------------------------------------

Marvel Character Live Action TV Projects in Development
------------------------------------- ---------------------------------
Blade and Brother Voodoo are two Marvel characters that are in
development .

Marvel Enterprises, Inc. Marvel's characters
and plot lines are created by its publishing segment that continues to
expand its leadership position in the U.
DECEMBER 31, 2004
CONSOLIDATED BALANCE SHEETS

December 31, December 31,
2004 2003
--------------- --------------
(in thousands,
except share data)

ASSETS
Current assets:
Cash and cash equivalents.

superman hina

Reported operating margins were 46% in Q1 2005.27 in the prior year
period.

Domestic license renewals , including category consolidation
efforts, which should exceed $60 million.

Domestic licensing overages and cash-basis revenues of $35
million (compared to $37 million in 2004 ), including $8.

Marvel Reports 2004 EPS of $1.10 Reflecting Strong Global Demand for All Its Character Brands; Marvel Maintains 2005 EPS Guidance Range of $1.07 to $1.12

Our consumer product division made tremendous
progress during the year in further enhancing our portfolio of
licensing relationships .
"Additionally, Marvel continues to make strides in extending our
development pipeline for entertainment projects. In light of our
success and the increased value of our brand, Marvel has been able to
improve the economic terms for new media and consumer product
projects.

------------------------- ---------------------------------------------
Marvel Enterprises, Inc.3 million at year-end.
----------------------------------------------------------------------

Marvel Character Animated TV Projects in Development
-------------------------------------------------- --------------------
Partnership with Antefilms Distribution to produce an original
animated television series based on the Fantastic Four. and worldwide while also
serving as an invaluable source of intellectual property. 104,642 108,062 107,173 100,355
========= ======== ========= =========

Diluted earnings per share
attributable to common stock. All TBW toys produced
under license from the Company are created, designed, marketed and
sold for TBW by the Company's toy segment, under an agency agreement
between TBW and the Company.

casteel superheros

Finally , we are pleased with the initial
demand for the Fantastic Four toy line and are optimistic regarding
the performance of this brand at retail. Marvel achieved increases of approximately 14% in both
the number of comic book titles shipped and in the average
circulation per title in Q1 2005 compared to the prior year
period.
Operating margins for the toy division increased from 33% in
Q1 2004 to 42% in Q1 2005 due to increased toy royalty and
service fees.

International licensing revenues in excess of $30 million,
including $9. and worldwide while also
serving as an invaluable source of intellectual property.
Licensing Sales by Category
(dollars in thousands)
---- ------------------------------------------------------------------
(in thousands) Three Months Ended Twelve Months
Ended
12/31/04 12/31/03 12/31/04 12/31/03
----------------------- -----------------------------------------------
Apparel and accessories $14,539 $11,693 $78,798 $39,218
----------------------------------------------------------------------
Entertainment (including studios,
themed attractions and
electronic games) 26,347 8,250 62,296 50,589
----------------------------------------------------------------------
Toy Royalties 7,433 4,230 34,217 14,946
------------------------------ ----------------------------------------
Other (Domestics, food and other) 8,337 5,808 39 ,423 19,696
----------------------------------------------------------------------
Total $56,656 $29,981 $214,734 $124,449
------------------------------------ ----------------------------------

Total licensing operating expenses remained flat at $22.4 million
in Q4 2004 compared to $22.0 million charge for
the early termination of the Company's lease for its corporate
office space and a credit for insurance collections of $5
million, was $7.25 - $0. -- 667
Prepaid expenses and other current
assets. $714,814 $741,857
=============== ==============

During the fourth quarter of 2004, Marvel commenced classifying
revenue from its master toy licensee, Toy Biz Worldwide Ltd. As a result of this change, prior-period segment
information has been reclassified as follows:

MARVEL ENTERPRISES , INC.

dilbert garen

06 per share after-tax charge, Q1 2005
reported EPS was $0.
"In publishing, following our previously stated strategic goals,
we are entering new retail channels.

Balance Sheet Update:

After common stock repurchases totaling $58 million in 2004,
Marvel had cash and cash equivalents of $205 million as of December
31, 2004.0 million available under its initial
repurchase authorization.12 $1.

Approximately $20 million in license revenue to be derived
from the Spider-Man joint venture.01 par value,
25,000,000 shares authorized, none
issued -- -
Common stock, $. 66,943 (57,934)
Accumulated other comprehensive loss. (91,001) (32,955)
--------------- --------------
Total stockholders' equity.

hobbes crenshaw

We plan to fund these film projects through the
utilization of a non-recourse revolving credit facility , thereby
maintaining strict adherence to our business model which limits
capital investment.

Balance Sheet Update:

Marvel had cash and short-term investments of $243 million as of
March 31, 2005.

Ongoing contributions from the Spider-Man 2 feature film.

Modest top line and bottom line growth from the publishing
division.12 $1. Revenues from TBW
reflect a broader set of efforts on the part of the Company than do
revenues from the Company's other licensees .

privileges hobbes

Q1 2005
net licensing sales include approximately $11.
Operating margins were 56% in Q1 2005 compared to 77% in the
prior-year period. 14, 2005
------------------------------------------ ----------------------------
Fantastic Four Fox July 8, 2005 release
----------------------------------------------------------------------

Marvel Character Feature Film Development Pipeline (Partial List)
------------------------------------------------------- ---------------
Character/Property Studio/Distributor Status
--------------------------- -------------------------------------------
X-Men 3 Fox Summer, 2006 release
----------------------------------------------------------------------
Ghost Rider Sony Script, Director, Filming
started, Slated for 2006
-------------------------------------------------------------------- --
The Punisher 2 Lions Gate Writer, Director, Targeted
for 2006
--------------------------------------------------------------- -------
Spider-Man 3 Sony/Columbia Director, May 4, 2007
release
---------------------------------------------------------------- ------
Namor Universal Pictures Script, Targeted for 2007
----------------- -----------------------------------------------------
Iron Man New Line Cinema TBD (1)
----------------------------------------------------------------------
Luke Cage Sony/Columbia TBD (1)
----------------------------------------------------------- -----------
Deathlok Paramount TBD (1)
------------------------------ ----------------------------------------
The Hulk 2 Universal Pictures TBD (1)
- ---------------------------------------------------------------------
Wolverine Fox TBD (1)
----------------------------------------------------------------------

Marvel Character Feature Film Projects in Development
Ant-Man, Black Panther, Captain America , Killraven (1), Nick Fury,
Silver Surfer and Thor
------------------------------------------ ----------------------------

Marvel Character Animated Direct-to-Video Projects in Development
----------------------------------------------------------------------
Partnership with Lions Gate to develop, produce and distribute
original animated DVD features. 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.01 par value, 25,000,000 shares
authorized, none issued -- --
Common stock, $.

A previously recorded valuation allowance associated with
state and local NOL carryforwards was eliminated, resulting in
a non-cash, non-recurring credit to income tax of
approximately $6.

Marvel's Chairman, Morton Handel, commented , "Our strong 2004
operating results continue to reflect the expanding global power of
the Marvel brand and an increase in consumer and media products based
on our characters. The Company is also moving aggressively into the animated
television and DVD markets to increase the support for our brands on a
worldwide basis.8 million
from the prior-year period primarily due to decreased sales of
action figures and accessories based on the Lord of The Rings
franchise and The Hulk movies.17 $1.12 $1.

crenshaw hobbes

(NYSE: MVL), a global entertainment and licensing company, today
reported operating results for the first quarter ended March 31, 2005.06 per share after-tax ) for the successful
resolution of all past and future payments claimed by Mr. International licensing net
sales, excluding JV activity, increased more than 96%
year-over-year to $9.4
million due to strength in core comic and trade paperback
sales. Lee under his
agreement with Marvel.
MARCH 31, 2005
CONSOLIDATED BALANCE SHEETS
March December
31, 2005 31, 2004
--------- ---------
(in thousands, except
share data)
ASSETS
Current assets:
Cash and cash equivalents $59,403 $50,071
Short-term investments 184,074 154,719
Accounts receivable, net 66,614 73,576
Inventories, net 7,453 6,587
Deferred income taxes, net 7,981 7,981
Prepaid expenses and other current assets 3,901 2,734
--------- -------- -
Total current assets 329,426 295,668

Molds, tools and equipment , net 5,242 5,553
Product and package design costs, net 1,230 1,249
Goodwill 341,708 341,708
Accounts receivable, non-current portion 32,222 37,718
Deferred income taxes, net 28,645 32,583
Other assets 318 335
--------- ---------

Total assets $738,791 $714,814
========= =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,143 $6,006
Accrued royalties 79,065 57,879
Accrued expenses and other current liabilities 35,910 43,962
Minority interest to be distributed 3,386 8,428
Income taxes payable 12,328 10,129
Deferred revenue 10,208 27,033
--------- ---------
Total current liabilities 145,040 153,437
Accrued rent 1,230 165
Deferred reserve, non-current portion 17,418 14,712
--------- ------- --
Total liabilities 163,688 168,314
--------- ---------

Stockholders' equity:
Preferred stock, $ .27 as compared to $0. Marvel toy
inventory was only $1.4 million in Q4 2004 compared to $5.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(unaudited )

Three Months Twelve Months
Ended December 31, Ended December 31,

2004 2003 2004 2003
--------- -------- --------- ---------

Net sales $100,492 $85,747 $513,468 $347,626
Cost of sales 17,888 21,832 159,589 79,466
--------- -------- ------ --- ---------
Gross profit 82,604 63,915 353,879 268,160
--------- -------- --------- ---------
Operating expenses:
Selling, general and
administrative 45,752 38,717 142,839 108,882
Depreciation and
amortization 877 1,530 3,783 4,338
--------- -------- --------- ---------
Total operating expenses 46,629 40,247 146 ,622 113,220
--------- -------- --------- ---------
Equity in net income of joint
venture 2,383 8,117 10,869
Other Income, net 5,380 535 9,039 1,413
--------- -------- --------- ---------
Operating income 41,355 26,586 224,413 167,222
Interest expense 4,772 20,487 18,718
Interest income and other
expenses, net 802 459 2,946 1,868
--------- -------- --------- ---------
Income before income taxes 42,157 22,273 206,872 150,372
Income tax expense (benefit) 5,364 8,777 64,631 (1,276 )
Minority interest in
consolidated joint venture 6,669 17,364 ---
--------- -------- --------- ---------
Net income 30,124 13,496 124,877 151,648
Less: preferred dividend
requirement --- 1,163
--------- -------- - -------- ---------
Net income attributable to
common stock 30,124 13,496 $124,877 $150,485
========= ======== ========= =========

Basic earnings per share
attributable to common stock $0. -- 214,457
Accounts receivable, net. $714,814 $741,857
=============== ==============

LIABILITIES AND STOCKHOLDERS ' EQUITY
Current liabilities:
Accounts payable. Because the services provided to TBW by
the Company's Toy segment involve efforts that are similar in nature
to the efforts associated with the Company's own toys, the Company
believes this change will better aggregate the results derived from
Marvel-branded toys developed by Marvel and more clearly reflect
operating results used by management to measure the performance of the
Toy operations.

cartooning slylock

We expect that the global
promotional value of these projects will complement the extensive
pipeline of film projects we already have in development with studio
partners and further our transformation into a leading global
entertainment company . The following are
expected to be some of the key factors in Marvel's 2005 financial
performance and are reflected in the Company's financial guidance
range.

Approximately $20 million in license revenue to be derived
from the Spider-Man joint venture, $11 million of which was
recorded in Q1 2005.

Income related to an estimated $80 million of wholesale sales
of Fantastic Four toys by our master toy licensee.4
million recorded in Q1 2005 .7%.
Segment Net Sales/Operating income
(dollars in thousands )
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 30,
2004 2003 2004 2003
--- -------------------------------------------------------------------
Licensing: Net Sales $56,656 $29,981 $214,734 $124,449
-------------------------------------------------------- --------------
Operating Income 34,251 10,204 152,726 83,227
--------- -------------------------------------------------------------
Publishing: Net Sales 22 ,069 18,955 85,943 73,255
-------------------------------------------------------------- --------
Operating Income 11,621 7,189 37,272 25,442
--------------- -------------------------------------------------------
Toys: Net Sales 21,767 36,811 212,791 149,922
-------------------------------------------------------------------- --
Operating Income 2,860 14,318 58,144 77,905
--------------------- -------------------------------------------------
Corporate Overhead: (7,377) (5,126 ) (23,729) (19,352)
----------------------------------------------------------------------
TOTAL NET SALES 100,492 85,747 513,468 347,626
--------------------------------- -------------------------------------
TOTAL OPERATING INCOME 41,355 26,585 224,413 167,222
----------------------------------------------------------------------

Segment Review:

-- Licensing Segment net sales increased 89% to $56. Full year 2004
sales of Spider -Man movie toys were $175. After this quarter,
Marvel will only be providing updates on annual guidance .27 $1.

The Fantastic Four movie release and related licensing, as
well as licensing associated with other entertainment projects
slated for 2005 or thereafter, noted in the table above. $204,790 $32,562
Certificates of deposit and commercial
paper.

hulk mischievous

Marvel will host a webcast today for all investors at 9:00 a.fulldisclosure.

Reflecting the $0.
"Our consumer products group continues to make tremendous strides
in leveraging the global awareness of our media projects.

Marvel Enterprises, Inc.0 million in Q1 2005 compared to
$4. Marvel recently reached a
distribution agreement with 7-Eleven convenience stores to introduce
marvel comic books, which are specifically designed and targeted at
the important children demographic.

----------------------------------------------------------------------
Marvel Enterprises, Inc.

hobbes superman

EDT available at: www.2 million in
Q1 2005 primarily due to significantly improved contributions
from, and the consolidation of, the joint venture with Sony
for Spider-Man movie merchandising, as well as contributions
from international licensing and studio operations.
Toy Sales Summary
(in thousands)
----------------------------------------------------------------------
Three Months Ended
3/31/05 3/31/04
------------------------------------------------------------ ----------
Marvel Toy Net Sales $4,107 $52,579
------------- ---------------------------------------------------------
Master Toy License:
---------------- ------------------------------------------------------
- Toy Royalties 3,419 2,070
--------------------------------------------------------------------- -
- Fees for services rendered 2,974 1,173
---------------------- ------------------------------------------------
Total Toy Segment $10,500 $55,822
----------------------------------------------------------------------

-- Corporate Overhead was $5.27
========== ===========

Weighted average number of diluted shares
outstanding 111,239 115,075
========== ===========

MARVEL ENTERPRISES, INC.fulldisclosure. Q4 2004 net licensing
sales include approximately $29. Net sales
derived from the licensing segment for the first quarter are expected
to be approximately 65% - 70% of total net sales with operating
margins in this segment of roughly 65% - 70%. is one of the world's most prominent character-based
entertainment companies .29 $0.50
========= ======== ========= =========
Weighted average number of basic
shares outstanding. 6,587 12,975
Distribution receivable from joint
venture, net -- 2,056
Deferred income taxes, net 7,981 18,197
Deferred financing costs.

mischievous theophrastus

0 million in the prior-year period.

MARVEL ENTERPRISES, INC.

Q4 2004 Highlights:

Net sales and operating income increased primarily due to
contributions from Marvel 's joint venture (JV) with Sony for
Spider-Man movie merchandising and to improved international
licensing revenues.

A shift towards revenues in licensing in Q4 2004 led to
company-wide operating margin of 41% compared to 31% in the
prior year period. Finally , our toy division's
performance was acknowledged as it was named Wal-Mart's 'Import Vendor
of the Year' for 2004.3 million, slightly
ahead of guidance of $160 million to $170 million .10
----------------------------------------------------------------------
(1) Previous 2005 guidance ranges were provided in the Company's
October 28, 2004 release. Some planned
advertising for the Fantastic Four brand is included in the licensing
and toy divisions. 1,249 1,433
Goodwill, net 341,708 341,708
Accounts receivable , non-current portion 37,718 26,437
Deferred income taxes, net 32,583 28,246
Deferred financing costs -- 2,779
Other assets 335 436
--------------- --------------
Total assets. ("TBW"),
and related expenses, within its Toy segment.

superman hobbes

9 million, an
operating margin of 40%, compared to an operating margin of
37% in the prior-year period. No
shares were repurchased during Q1 2005 as Marvel was precluded from
any such activity due to active discussions related to developing the
feature film fund. Titles include:
The Avengers 1, The Avengers 2, Iron Man and Dr.

Contributions from the syndication of the first Spider-Man
feature film as well as a non-refundable option payment for
the Spider-Man 3 movie expected to be released in 2007.25 $0.01 par value, 250 ,000,000 shares
authorized, 120,676,702 issued and 105,335,502
outstanding in 2005 and 120,442 ,988 issued and
105,101,788 outstanding in 2004 1,206 1,205
Deferred stock compensation (9,067) (5,164)
Additional paid-in capital 581,887 577,169
Retained earnings 94,664 66,943
Accumulated other comprehensive loss (2,586) (2,652)
Treasury stock , 15,341,200 shares (91,001) (91,001)
--------- ---------
Total stockholders' equity 575,103 546,500
--------- ---------

Total liabilities and stockholders' equity $738,791 $714,814
========= =========

Business Editors/Entertainment Editors

NEW YORK----

Marvel will host a webcast today for all investors at 9:00 a.

4Q 2004 reported EPS of $0.

Marvel's Publishing Segment net sales rose 16% to $22.

Marvel's Toy Segment net sales decreased 41% to $21.
----------------------------------------------------------------------
(1) Represents a change from the previously supplied schedule

2005 Video Game Release Schedule
(Release dates are controlled by Publishing partners)
------------------------------- ---------------------------------------
Publisher Character Release
----------------------------------------------------------------------
Activision Spider-Man + Friends Q1 2005
--------------------------------------------------------- -------------
Fantastic Four Q2 2005
------------------ ----------------------------------------------------
Ultimate Spider-Man Q3 2005
----------------------------------------------------------------------
X-Men Legends II Q4 2005
----------------------------------------- -----------------------------
Electronic Arts Marvel versus EA Q4 2005
-- --------------------------------------------------------------------
THQ Inc Punisher Q1 2005
--------------------------------------------------------------------- -
Vivendi Universal Hulk: Ultimate Destruction Q3 2005
------------------------------ ----------------------------------------

Q1 2005 financial guidance: Q1 2005 results are expected to
benefit from continued strength in Spider-Man 2 movie merchandise
licensing, domestic renewals and international licensing.

About Marvel Enterprises

With a library of over 5,000 proprietary characters, Marvel
Enterprises, Inc.

spiderman privileges

Marvel Reports First Quarter EPS of $0.25 After Settling all Outstanding Litigation with Stan Lee; Marvel Maintains 2005 EPS Guidance Range of $1.07 to $1.12

Business Editors

NEW YORK----Marvel Enterprises,
Inc.m. In
publishing, Marvel's direct segment market share in March 2005
exceeded 55%, which reflects the high quality of our product and
increased retail support. Some planned advertising for the Fantastic Four brand is
included in the licensing and toy divisions.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(In thousands, except per share data )
(unaudited)
Three Months
Ended March 31,

2005 2004
---------- -----------

Net sales $104,144 $122,326
Cost of sales 12,304 40,523
---------- -----------
Gross profit 91,840 81,803
---------- ----- ------
Operating expenses:
Selling, general and administrative 43,697 32,146
Depreciation and amortization 1,033 745
---------- -----------
Total operating expenses 44,730 32,891
---------- -----------
Equity in net income of joint venture -- 8,117
Other Income, net 846 272
---------- - ----------
Operating income 47,956 57,301
Interest (income ) expense, net (1,159) 3,920
---------- -----------
Income before income taxes and minority interest 49,115 53,381
Income tax expense 18,864 22,111
Minority interest in consolidated joint venture 2,530 --
---------- - ----------
Net income $27,721 $31,270
========== ===========

Basic earnings per share attributable to common
stock $0.2 million ($0.
------------- ---------------------------------------------------------
Q1 2005 Q1 2004 2005 2004
(in millions - except Guidance Results Guidance(1) Results
per share amounts) (Unaudited)
-------------------------------------------- --------------------------
Net sales $88 - $98 $122 $370 - $390 $513
----------------------------------------------------------------------
Net income(2) $29 - $34 $31 $120 - $126 $125
--------------------------------------------------------- -------------
EPS attributable to
common stock(2) $0.29 $0.

Ongoing contributions from the Spider-Man 2 feature film.34
========= ======== ========= =========

Weighted average number of
diluted shares outstanding 111,794 115,152 113 ,957 113,439
========= ======== ========= =========

MARVEL ENTERPRISES, INC. (2,652) (2,910)
--------------- --------------
Total stockholders' equity before
treasury stock.

The sites should be appropriate and of interest to kids.

garen hina

25 as compared to $0.

Marvel's Chairman, Morton Handel, commented, "Marvel's character
and corporate brands are firmly established with consumers on a
worldwide basis.

Marvel Studios
(Development and release dates are controlled by Movie Studios)
--------------------------------------------- -------------------------

Marvel Character Feature Film Line-Up For 2005
----------------- -----------------------------------------------------
Film/Character Studio/Distributor Status
----------------------------------------------------------------------
Elektra New Regency/ Fox Released Jan.07 - $1. EDT
available at: www. (NYSE:MVL), a global entertainment and
licensing company, today reported operating results for the fourth
quarter and year ended December 31, 2004.9 million, an operating margin of 44%, compared
to an operating margin of 38% in the prior-year period. Characters
include: The Avengers 1, The Avengers 2 and Iron Man.

International licensing revenues in excess of $30 million. $6,006 $18,455
Accrued royalties.

crenshaw superman

Our strong Q1 operating results reflect the continued
high level of demand for consumer and media products based on our
characters.

Marvel's Publishing Segment net sales rose 14% to $22.

As expected, Marvel's Toy Segment net sales decreased 81% to
$10.8 million in Q1 2004. Four projects in 2D/3D format are in
development with the first release slated for 2006. A complete table reconciling the reclassification of TBW
contributions for the periods shown below is presented at the end of
this release.6 million and operating
margins for the licensing segment would have been 49% in Q4 2004
compared to 34% in Q4 2003. During the fourth quarter of 2004, Marvel repurchased
approximately 1 million shares for a total consideration of $14. 73,576 51,820
Inventories, net.01 par value,
250,000,000 shares authorized,
120,442,988 issued and 105,101,788
outstanding in 2004 and 119,706,206
issued and 108,615,206 outstanding in
2003 1,203 1 ,198
Deferred stock compensation. 637,501 502,405
Treasury stock, 15,341,200 shares in
2004 and 11,091,000 shares in 2003.

ecard ucomics

Marvel's fiscal 2005 first quarter results include a $10 million
one-time charge ($0. In order to further leverage this high level of awareness
and interest in our characters, this morning we announced plans to
produce our own slate of feature films."

Segment Review:

-- Licensing Segment net sales increased 52% to $71 .1 million in the prior year period, resulting from
increased legal fees related to active litigation .0
million available under its initial stock repurchase authorization. Marvel's characters
and plot lines are created by its publishing segment that continues to
expand its leadership position in the U.S.

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
major licensees, delays and cancellations of movies and television
productions based on Marvel characters, poor performance of major
movies based on Marvel characters, toy-production delays or
shortfalls, continued concentration of toy retailers , toy inventory
risk, significant appreciation of Chinese currency against other
currencies and the imposition of quotas or tariffs on products
manufactured in China.96 per share). 26,
thirty -minute 2D/3D animated episodes are planned with initial TV
airings in 2006.

Additional expense of $4 million in the second half related to
the new accounting required for stock options . 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 .27 $0.

botanist diversions

Lee to be
due under an agreement with Marvel.

Marvel Enterprises , Inc.
(2) 2004 full year net income and EPS attributable to common stock
include one-time charges of approximately $12 million associated
with the early redemption in June 2004 of the Company's 12% Senior
Notes due 2012.

The Fantastic Four movie release and related licensing , as
well as licensing associated with other entertainment projects
slated for 2005 or thereafter, noted in the table above. International licensing net
sales, excluding JV activity , increased more than 168%
year-over-year to $9.
Accounting for Sony's minority interest in the Spider-Man movie
merchandising joint venture as royalty expense, licensing operating
income in the quarter would have been $27.2 million in Q4 2004 compared with sales of $11.1 million
in the prior year period.

Domestic license renewals, including category consolidation
efforts , which should exceed $60 million.

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
major licensees, delays and cancellations of movies and television
productions based on Marvel characters, poor performance of major
movies based on Marvel characters, toy-production delays or
shortfalls, continued concentration of toy retailers, toy inventory
risk, significant appreciation of Chinese currency against other
currencies and the imposition of quotas or tariffs on products
manufactured in China. $0. 2,734 2,273
--------------- --------------
Total current assets 295,668 335 ,007

Molds, tools and equipment, net.

chancer diversions

0 million in
gross sales recognized as a result of the consolidation of the
JV, compared to the year ago period in which Marvel's portion
of the JV's results were recorded as equity in net income of
the joint venture of $8.5
million in Q1 2005 compared to $19. Excluding the charge, operating margins would have
been 70% in Q1 2005.

Marvel cautions investors that inherent variability in the timing
of license opportunities and entertainment events, the timing of their
revenue recognition, and their relative success may contribute to
sequential and year-over-year variability in its interim financial
results and could have a material impact on quarterly results as well
as Marvel's ability to achieve the financial performance included in
its financial guidance.

About Marvel Enterprises

With a library of over 5,000 proprietary characters, Marvel
Enterprises, Inc.06 per share), reducing the Q4
2004 income tax rate to 12. Marvel
experienced slight increases in both the number of comic book
titles shipped and the average circulation per title in Q4
2004 compared to the prior year period .

----------------------------------------------------------------------
(in thousands ) Three Months Ended Twelve Months
Ended
12/31/04 12/31/03 12/31/04 12/31/03
---------- ------------------------------------------------------------
Marvel Toy Net Sales $17 ,357 $25,878 $197,604 $85,167
---------------------------------------------------------------- ------
Master Toy License:
------------------------------------------------------------------- ---
- Toy Royalties 2,450 5,140 9,298 29,579
-------------------- --------------------------------------------------
- Fees for services rendered 1,960 5 ,793 5,889 35,176
----------------------------------------------------------------------
Total Toy Segment $21,767 $36,811 $212,791 $149,922
-------------------------------- --------------------------------------

-- Corporate Overhead, which included a $4. As of March 4, 2005,
Marvel continues to have $42.

The benefit of interest income versus interest expense
incurred in 2004, coupled with a lower average fully diluted
share count, reflecting stock repurchases in 2004. 57,879 32,936
Accrued expenses and other current
liabilities 43,962 31,442
Minority interest to be distributed 8,428 --
Unsecured creditors payable -- 2,963
Income taxes payable 10,129 4,705
Deferred revenue 27,033 30,308
--------------- --------------
Total current liabilities.

hulk foxtrot

4 million as Marvel 's new international
offices continued to leverage global marketing momentum.
---------------- ------------------------------------------------------
2005 2004
(in millions - except per share amounts) Guidance (1) Actual
----------------------------------------------------------------------
Net sales $370 - $390 $513
------------------------------------------------- ---------------------
Net income (2) $120 - $126 $125
-- --------------------------------------------------------------------
Diluted EPS attributable to common stock (2) $1.12 $1. Lee to be due to Mr.
The licensing division is expected to generate approximately 50%
of total sales for the year with operating margins ranging between 60%
- 65%.3 million
in Q4 2003. Marvel's new lease will generate
annual savings of approximately $1. Four projects in 2D/3D format are in
development with the first release slated for 2006.

Contributions from the syndication of the first Spider-Man
feature film as well as an advance for the Spider -Man movie
expected to release in 2007. Marvel's operations are focused in three
areas: entertainment (Marvel Studios) and licensing, comic book
publishing and toys.S.
RECONCILIATION OF RECLASSIFIED REVENUES
(In thousands, except per share data)
(unaudited)

Reclassified Year End Financial Data
----------------------------------------------------------------------
2004 2004 2004 2003 2003 2003
Amount Adjustment As Amount Adjustment As
Adjusted Adjusted
----- -----------------------------------------------------------------
Net Sales
------------------ ----------------------------------------------------
Licensing 229,921 (15,187) 214,734 189 ,204 (64,755) 124,449
----------------------------------------------------------------------
Toys 197,604 15,187 212,791 85,167 64,755 149,922
--------------------------- -------------------------------------------
Operating 2004 2004 2004 2003 2003 2003
Income Amount Adjustment As Amount Adjustment As
Adjusted Adjusted
------------------------------------------ ----------------------------
Licensing 165,215 (12,489) 152,726 139,409 (56,182) 83,227
----------------------------------------------------------------------
Toys 45,655 12,489 58,144 21,723 56,182 77,905
------------------------------------------------- ---------------------

Reclassified Quarterly Financial Data
------ ----------------------------------------------------------------
Q4 04 Q4 04 Q4 04 Q4 03 Q4 03 Q4 03
Amount Adjustment As Amount Adjustment As
Adjusted Adjusted
----------------- -----------------------------------------------------
Net Sales
------------------------------ ----------------------------------------
Licensing 61,066 (4,410) 56,656 40,914 (10 ,933) 29,981
----------------------------------------------------------------------
Toys 17,357 4,410 21,767 25,878 10,933 36,811
------------------------------------ ----------------------------------
Operating Q4 04 Q4 04 Q4 04 Q4 03 Q4 03 Q4 03
Income Amount Adjustment As Amount Adjustment As
Adjusted Adjusted
---------------------------------------------- ------------------------
Licensing 37,967 (3,716) 34,251 19,262 (9,058) 10,204
----------------------------------------------------------------------
Toys (856) 3,716 2,860 5,260 9,058 14,318
----------------------------------------------------- -----------------

hulk hobbes

As of March 31, 2005, Marvel continues to have $42. Included in this updated
guidance is the $10 million charge taken in Q1 2005 related to the
settlement of outstanding litigation with Stan Lee for all past and
future payments claimed by Mr.2
million expense for stock options under FASB Statement Number 123R has
been eliminated, reflecting a recent pronouncement delaying
implementation until 2006.4 million recorded in Q1 2005.com

Marvel Enterprises, Inc.12 in the
prior year period. This continuation of our category
consolidation strategy, which focuses on teaming with leading
partners, improves retail support and long-term sales potential.

4 million were recorded as equity in
net income of the joint venture.1
million due to strength in core comic and trade paperbacks as
well as growth in new mass-market retail chains.4
million (average price of $13.07 - $1.

An estimated $80 million of wholesale sales of Fantastic Four
toys by our master toy licensee. 168,314 272,407
--------------- --------------

Stockholders' equity:
Preferred stock, $.

icg hina

Operating income in Q1 2005 was $8.
-------------------------------------------------- --------------------

Marvel Character Live Action TV Projects in Development
------------- ---------------------------------------------------------
Brother Voodoo.10
------------------ ----------------------------------------------------
(1) Previous 2005 guidance ranges were initially provided in the
Company's October 28, 2004 release and reiterated in the Company's
March 7, 2005 release.

Modest top line and bottom line growth from the publishing
division . is one of the world's most prominent character-based
entertainment companies.m."
Commencing with Q4 2004, for all periods presented, Marvel has
reclassified the revenue and related costs generated from its license
and agency agreements with Toy Biz Worldwide LTD (TBW) from the
licensing division to the Toy division, which is reflected in the
tables below. Excluding the benefit
of reductions in reserves, operating income in Q4 2004 would
have been $9. As previously disclosed , a planned increase in
advertising and promotion expense ahead of the 2004 holiday
season, coupled with lower sales volumes, resulted in a
year-over-year decline in the operating margins for the toy
division from 39% in Q4 2003 to 13% in Q4 2004. 14, 2005
----------------------------------------------------------------------
Fantastic Four Fox July 8, 2005 release(1)
----------------------------------------------------------- -----------

Marvel Character Feature Film Development Pipeline (Partial List)
------------ ----------------------------------------------------------
Character/ Studio/Distributor Status
Property
----------------------------------------------------------------------
X-Men 3 Fox Summer, 2006 release(1)
-------------------------------------- --------------------------------
Ghost Rider Sony Script, Director, Filming
started, Slated for 2006
--------------------------- -------------------------------------------
Iron Man New Line Cinema Script, Targeted for 2006
----------------------------------------------------------------------
Luke Cage Sony/Columbia Script, Director, Targeted for
2006
----------------------------------------------------------------------
The Punisher 2 Lions Gate Writer, Director, Targeted for
2006
----------------------------------------------------------------------
Deathlok Paramount Script, Director, Targeted for
2006
---- ------------------------------------------------------------------
Spider-Man 3 Sony/Columbia Director, May 4, 2007 release
---------------------------------------------------------- ------------
Namor Universal Pictures Script, Targeted for 2007
--------------- -------------------------------------------------------
The Hulk 2 Universal Pictures Development , Targeted for 2007
----------------------------------------------------------------------
Wolverine Fox Development, Targeted for 2007
----------------------------------- -----------------------------------

Marvel Character Feature Film Projects in Development
Ant -Man, Black Panther, Captain America, Nick Fury, Silver Surfer,
Thor
------------------------- ---------------------------------------------

Marvel Character Animated Direct-to-Video Projects in Development
----------------------------------------------------------------------
Partnership with Lions Gate to develop, produce and distribute
original animated DVD features.

Domestic licensing overages of $35 million (compared to $37
million in 2004). 5,553 5,811
Product and package design costs, net. 577,171 566,908
Retained earnings (deficit).

amend superheros

Licensing Sales by Category
(in thousands)
----------------------------------------------------------------------
Three Months Ended
3/31/05 3/31/04
--------------------------------------------------------- -------------
Apparel and accessories $24,855 $19,697
---------- ------------------------------------------------------------
Entertainment (including studios, themed
attractions and electronic games) 24,927 5,444
----------------------- -----------------------------------------------
Toy Royalties 5,083 6,348
----------------------------------------------------------------------
Other (Domestics, food and other) 16,361 15,371
-------------------------------- --------------------------------------
Total 71,226 46,860
----------------------------------------------------------------------

Reflecting the charge related to the settlement of the Stan Lee
litigation, total licensing operating expenses increased 66% to $31. Strange. 26,
thirty-minute 2D/3D animated episodes are planned with initial TV
airings in 2006. Marvel's operations are focused in three
areas: entertainment (Marvel Studios ) and licensing, comic book
publishing and toys. 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. Classifying
Toy Biz Worldwide income in the toy division, the licensing division
is now expected to generate roughly 50% of total sales for the year
with operating margins ranging between 60% - 70%. (5,164) (4,857)
Additional paid-in capital.