DIC Entertainment and AOL Align to Create Strategic Television and Online Partnership

DIC Entertainment (DIC), a leading independent global brandmanagement company, and AOL online kids destination, KOL, have formedan unprecedented partnership to co-produce a new Saturday morningbranded programming block, "KOL's Saturday Morning Secret SlumberParty on CBS," which will premiere September 16, 2006. DIC and KOLwill also develop online and on-air co-production initiatives inconjunction with the block.

KOL and DIC will co-produce programming for the 2006 broadcastseason, including the new television series "Dance Revolution,"inspired by Konami's hit video game franchise Dance DanceRevolution(R) (DDR). The new dance competition series will be hostedby Radio KOL DJ Rick Adams, who will also continue to maintain hislive online radio show for kids available on KOL. With millions ofkids tuning into his show, DJ Rick has a unique and energetic take onthe world, all from the kids' perspective, which was first discoveredwhen he was a TV host in the UK for Nickelodeon, Bravo and Children'sBBC. "Dance Revolution" will also offer onscreen visuals thatconstantly encourage viewer participation by demonstrating specificdance moves and steps. DIC and KOL are also now in development onprograms for the 2007 season.

In addition, KOL and DIC will develop a website designed totransform the programs airing on "KOL's Saturday Morning SecretSlumber Party on CBS" into a comprehensive and interactive experiencefor kids. KOL will also offer special online programming includinggames, program clips, behind-the-scenes features and more to driveon-air viewership. "Dance Revolution" and the online activities willsupport the schedule of programming debuting this fall on the E/Icompliant branded block. Other programming on the Saturday Morningline-up include CAKE, Horseland, The Animated Trollz and Madeline.Additionally, KOL will create Public Service Announcements on healthyeating, to air during the block and online utilizing KOL's popularoriginal animated character "Princess Natasha."

DIC will seek initial guidance on all programming to air on the"KOL's Saturday Morning Secret Slumber Party on CBS," from children'sexperts from the DIC Educational Advisory Board -- a group comprisedof leading media experts, educators and pediatricians created toprovide information, guidance, advice and general expertise to DIC inthe development of multimedia programs and projects for children.

"With AOL's expertise in developing online programming and oursuccess in building brands such as 'Princess Natasha' and Radio KOL,appealing to millions of kids, we are confident that this landmarkpartnership with DIC will be a tremendous success," said Malcolm Bird,Senior Vice President, AOL Kids & Teens. "Once again, AOL is leadingthe industry by building another initiative that taps the power oftelevision and the online medium to ultimately grow a larger audienceacross both platforms."

"Kids today continue to expand their entertainment options beyondtelevision, and our new partnership with KOL will provide us with atremendous opportunity to reach kids through the launch of the newSaturday morning programming block on CBS as well as through KOL'sgrowing online destination," comments Andy Heyward, Chairman & CEO,DIC Entertainment. "We are thrilled to work with KOL to co-produceinnovative programming and to create a unique cross-promotionalprogram that will drive kids online; increase on-air viewership andprovide our clients with an effective way to reach kids in aprogressive safe environment."

About DIC Entertainment:

DIC Entertainment, a fully-integrated global brand managementcompany, is dedicated to creating, developing, producing,distributing, marketing and merchandising family-based intellectualproperties. The Company serves as the worldwide licensor for renownedbrands such as Strawberry Shortcake, Trollz and Classic Trolls. DIChas distinguished itself by building one of the largest libraries ofwestern-style animation with approximately 2,800 half-hours ofprogramming, including Trollz(TM), Inspector Gadget(TM), StrawberryShortcake(TM), Sabrina(TM), Madeline(TM), Liberty's Kids(TM), Where OnEarth Is Carmen Sandiego?(TM), Sonic The Hedgehog(TM), Super MarioBros(TM) and Care Bears(TM). This year DIC and CBS, will launch,"CBS's Saturday Morning Secret Slumber Party," an all-new brandedblock that will feature FCC-compliant children's programming and willserve as a platform to introduce new programs created by DIC. Thecompany also programs the DIC Kid's Network, a syndicated programmingblock designed to meet FCC standards that airs on over 300 stations inthe U.S. As a pre-eminent supplier of kid's programming worldwide, DIChas developed strategic partnerships with key domestic andinternational broadcast partners throughout North America, Europe,Asia, Latin America, Africa and Australia. DIC is headquartered inBurbank, California with offices in New York, Paris and London.

About KOL(R):

KOL(R) on AOL is designed entirely for kids combining exclusivecontent from industry leading kids' brands and original programming.Reaching millions of kids each month, KOL is leading the nextgeneration of children's entertainment with five animated onlineseries, Princess Natasha(TM), Skwod(TM), Kung Fu Academy(TM) andPilar's Adventures(TM).

About AOL:

AOL and its subsidiaries operate a leading network of Web brandsand the largest Internet access subscription service in the UnitedStates. Web brands include the AOL.com(R) website, AIM(R), MapQuest(R)and Netscape(R). AOL offers a range of digital services in the areasof education, safety and security, communications and music. Thecompany also has operations in Europe and Canada. AOL LLC is amajority-owned subsidiary of Time Warner Inc. (NYSE:TWX) and is basedin Dulles, Virginia.