Marvel and Stan Lee Settle All Outstanding Litigation

Marvel Enterprises, Inc. announced today that it has settled all pending litigation with Stan
Lee. The settlement agreement covers the lawsuit filed by Mr. Lee in November 2002 in
which Mr. Lee claimed entitlement, under an agreement with Marvel, to a participation in
Marvel's profits from various sources, including the Spider-Man movies and other film and
television productions that utilize Marvel characters. The settlement covers Mr. Lee's
participation claim for both past and any potential future payments. Specific terms of the
settlement agreement were not disclosed.

John Turitzin, Marvel's General Counsel, said, "Stan is one of the founders of today's comic
book industry. We are pleased with the settlement and are happy to have resolved all of our
disputes with him."

Eric Green of Resolutions, LLC mediated the settlement.

Lee’s suit, of course, was filed in November of 2002, and in it Lee claimed that Marvel had embarked
upon a “shameful scheme” to deprive him of monies from the film versions of characters he’d had a
hand in developing – a stipulation which was written into his contract in 1998:

“f) In addition, you shall be paid participation equal to 10% of the profits derived during your life by
Marvel (including subsidiaries and affiliates) from the profits of any live action or animation television
or movie (including ancillary rights) productions utilizing Marvel characters. This participation is not
to be derived from the fee charged by Marvel for the licensing of the product or of the characters for
merchandise or otherwise. Marvel will compute, account and pay to you your participation due, if any,
on account of said profits, for the annual period ending each March 31 during your life, on an annual
basis within a reasonable time after the end of each such period.”

In January of this year, the Court sided with Lee, saying in a partial summary judgment that Lee was
indeed owed money from the films. At the time, Marvel claimed they would appeal the Court’s
decision.

The case became fairly high profile, both within and outside of the comics market, as 60 Minutes
featured Lee on two occasions, one prior to the suit, which, some claim, Lee's expressions suggested he
was troubled about his relationship with Marvel in light of the very successful string of movies; and
one after the suit had been filed.

Both the announcement of Lee's settlement, and that Marvel has entered into a production deal with
Paramount which will see Marvel producing its own movies came hours before Marvel released it's Q1
2005 numbers, which noted a $10 million charge related to the matter.

Trying to draw lines between the newsflurry, the deal between Marvel and Paramount, as well as the
over $500 million in financing, allowing Marvel to produce its own movies means that movies just
became much larger potential profit generators for Marvel than they were previously. With Lee's
settlement for all past and future Marvel movies (as mentioned in the Q2 numbers), in place, one could
easily assume that Lee will be effectively cut out of this larger profit pie from which Marvel's new role
as movie producer could result.