Archie's Corner

[mmayr]

Marx Toys and Entertainment Dismisses Case against UIT in Preparation for New Contract


SEBRING, Ohio--(BUSINESS WIRE)--Sept. 17, 2003--Marx Toys And Entertainment (Marx) (OTCBB:MRXT), today, announced that the parties have signed a memorandum outlining all of the points of a new contract and as a result, Marx has dismissed the pending litigation regarding the original contract dispute.

Marx's new CEO, Bob LoMonaco stated, "We are all very pleased with the outcome of our lengthy negotiations. Based on the new agreement, Marx will have the exclusive license to market IM Buddies and many more incredible items using UIT's patented technologies beginning with this upcoming holiday season. The new contract will have a 5 year term instead of the 3 year term of the original agreement and just as importantly, both companies are eagerly moving forward to complete product development and marketing plans for the future."

A formal contract is being prepared for signatures by the end of this week. Last, Marx plans to have the first IM Buddies available by mid-November.

About Marx Toys And Entertainment Corp. Marx Toys And Entertainment Corp. manufactures and markets interactive toys and reissued collectible toys, along with classic games, play sets and ride along toys. Marx's vintage originals are highly collectible amongst hobby enthusiasts. Marx branded toys are sold at more than 400 toy and hobby retailers across the U.S. and has a rich history dating back to 1928. To read more on this history, visit http://www.marxtoys.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Marx Toys And Entertainment Corp. takes no obligation to update or correct forward-looking statements.

CONTACT:

Investor & Media Relations

JD Merlin & Associates, 860-639-9249 or 860-857-1462

[e-mail]

http://www.jdmerlin.com

SOURCE: Marx Toys And Entertainment Corp.

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09/17/2003 09:02 EASTERN