Cover Concepts (www.coverconcepts.com) distributes materials such as textbook covers, coloring books, posters, bookmarks and other educational materials, free of charge, to a BPA International-audited network of over 43,000 public schools, reaching a universe of more than 30 million children in grades K-12. Cover Concepts' database enables it to target specific demographic or age groups with branded products and samples. Cover Concepts recently extended its distribution network to include daycare centers, public libraries and summer camps.
Free products distributed within the Cover Concepts network include:
-- Book Covers
-- Locker Posters
-- Teaching Guides
-- Health & Beauty Samples
-- Coloring Sheets
-- Incentive Programs
-- Growth Charts
Cover Concepts anticipates advertising revenue of approximately $4 million and a modest operating profit in 2003 from a team of 12 sales representatives and administrative personnel. Marvel purchased Cover Concepts from Hearst Communications, Inc.
Gui Karyo, President - Publishing, commented, "Though small in size, this acquisition represents an exciting new growth initiative for the publishing division and is one of several steps Marvel is taking to expand its reach to children. Cover Concepts will provide the distribution to schools for various new products targeting the valuable 'tween' demographic (ages 8 to 12) that could begin as early as fall 2004. These products could include lesson plans, periodicals, and other areas of publishing that are traditionally targeted to this demographic. From a financial perspective, we believe this accretive acquisition should provide an exceptional return on investment and more importantly, provide us with a means for expanding the demographic reach of Marvel publishing as well as provide relationships with advertisers that were not previously Marvel Comics customers."
About Marvel Enterprises
Marvel Enterprises, Inc. is a leading global character-based entertainment licensing company that has developed and owns a library of over 4,700 characters which have entertained generations around the world for over 60 years. Marvel's operations are focused in entertainment and consumer product licensing and comic book publishing. Marvel's creative teams at its Marvel Studios, Marvel Comics and Toy Biz divisions support the development of feature films (and DVD/video), video games, TV series and toy lines based on its characters. Marvel also licenses its characters for use in a broad and growing range of consumer products and services including apparel, collectibles, food and promotions. Marvel Comics is a leading global comics publisher and an invaluable source of intellectual property; Marvel Studios works with studios to develop feature film and entertainment projects; and Toy Biz is a recognized leader in toy design, sales and marketing that develops and oversees both licensee and in-house toy lines. For additional information visit http://www.marvel.com.
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.