BARBIE IN THE NUTCRACKER

Leading distributor of quality family and children's programming joins Mattel in
bringing one of the world's best-known brands to consumers in a whole new way

SANTA MONICA, February 23, 2001 - Continuing its leadership position in the distribution of family-oriented home entertainment, Artisan Entertainment's Family Home Entertainment (FHE) division will distribute Barbie In The Nutcracker, the first ever full-length feature film for Mattel's (NYSE: MAT) Barbie brand. FHE is emerging as the distributor of choice for producers -- for both its ability to distribute product directly to mass market and specialty retailers -- as well as its marketing savvy.

The agreement, which covers the distribution of the direct to video feature in both VHS and DVD formats, marks a truly groundbreaking initiative by Mattel in the diversification of the renowned Barbie brand into the entertainment marketplace. Barbie in the Nutcracker is scheduled to hit stores in October 2001.

Said Glenn Ross, President, FHE, "Barbie is no less than an American icon and we are pleased to be working with Mattel to bring this beloved doll to life and into the homes of the millions who adore her. Artisan and FHE have built their reputation on providing families with quality programming and this Barbie film fits right in with our existing relationships with the industry's top brand names in the family entertainment category."

"We continue to evolve the Barbie Brand to further engage and entertain girls," said Adrienne Fontanella, President/Girls, Mattel. "With the magic of bringing Barbie to life in an unexpected way and the power of Artisan's distribution, we feel we can better reach girls to spark their dreams and create a whole new relationship with the Brand."

This modern adaptation of the holiday classic casts Barbie doll in two roles - Clara and the Sugarplum Princess, as she embarks on the adventure of a lifetime. It is through this magical experience that Barbie shows girls that with self-reliance and confidence, anything is possible.

Captured on the 75-minute stop motion computer animated video by Mainframe Entertainment, the tale is enhanced with magical dance scenes choreographed by acclaimed choreographer Peter Martins and features the original score by Tchaikovsky. Martins will create the dance sequences performed by five premier dancers from the New York City Ballet and Mainframe Entertainment will then use these real-life images as a basis for bringing the beautiful dance scenes to the screen in a way never seen before.

Barbie In The Nutcracker will also have a supporting cast of characters and exciting products. From Barbie as the Sugarplum Princess and Ken as Prince Eric to Kelly and Tommy as their feature characters and an enchanting horse and candy sleigh, girls will have the opportunity to play out the Barbie in the Nutcracker story as Barbie dances on her first-ever special ballet stand. Special Barbie sleepwear and a Barbie in the Nutcracker Hallmark ornament will also be available. In addition, girls can follow along with the beautifully illustrated Barbie In The Nutcracker book featuring the engaging tale that will inspire a new generation of girls and be passed down for generations to come.

Since the Barbie doll's creation in 1959 as a paper-doll-inspired friend, she has firmly established herself as the most popular fashion doll of all time. For more than four decades, Mattel has maintained that title by adapting Barbie's look, lifestyle and fashions to meet the changing times. While the Barbie Brand represents Mattel's roots in girls' toys, the toy company has flourished in the girls' toy market with several best-selling brands including American Girlç, Diva Starz(tm), Polly Pocket!ç and Cabbage Patch Kidsç. Headquartered in El Segundo, California, Mattel has offices and facilities in 36 countries and markets its products in more than 150 nations throughout the world.

FHE is home to some of the most popular family and children's entertainment brand names. Among the best sellers are titles from: Hallmark Home Entertainment, including Alice in Wonderland starring Whoopi Goldberg and Martin Short and Gulliver's Travels with an all star cast including Ted Danson, Mary Steenburgen and Peter O'Toole; Hallmark Hall of Fame titles including Sarah, Plain and Tall starring Glenn Close and Christopher Walken and O Pioneers! starring Jessica Lange, David Strathairn and Anne Heche; Discovery Channel including titles from The Learning Channel (TLC) and Animal Planet such as the popular Crocodile Hunter series; The Baby Einstein Company's slate of Video Board Books including Baby Shakespeare, Baby Van Gogh and Baby Bach, and time honored classics like Scholastic's Clifford The Big Red Dog and The Miracle Maker. Artisan Entertainment Inc. is a leading independent entertainment company that produces and distributes motion pictures and other programming in the home entertainment, theatrical, broadcast and pay television and Internet markets.

Artisan Home Entertainment has an extensive library of over 6,700 titles and distributes video product directly to over 13,000 retail stores in the United States from popular brands such as All of this seems repetitive. Discovery, Hallmark Home Entertainment, Hallmark Hall of Fame, and its own Family Home Entertainment brand, which has released such titles as Merlin, Alice in Wonderland, and Clifford The Big Red Dog and award winning product from The Baby Einstein Company. Other titles available from Artisan Home Entertainment include Terminator, Terminator 2: Judgment Day, Dirty Dancing, The Blair Witch Project, Buena Vista Social Club, the Rambo series, It's a Wonderful Life, On Golden Pond, The Last Emperor and The Piano. Artisan Entertainment also has a joint venture with Marvel Enterprises to develop, produce and distribute character-based programming across multimedia outlets. On the theatrical side, Artisan Pictures is an independent producer and distributor of theatrical product, whose recent releases include Requiem for a Dream and Dr. T and the Women. Artisan has output agreements with Showtime Networks for domestic pay television as well as theatrical output deals with Alliance Atlantis in Canada, Momentum Pictures in the U.K., Highlight Communications in Germany and Lauren Films in Spain. Artisan's product is sold in international territories through Summit Entertainment.