RNS Number:3605L
Entertainment Rights PLC
21 May 2003


21 May 2003

                              ENTERTAINMENT RIGHTS PLC

                                Licensing Agreement


Entertainment Rights Plc ("ER") announced today that it has been advised by
Mattel Inc. that the agency agreement with Link Licensing Ltd (a wholly owned
subsidiary of ER) for the representation of certain non-doll Barbie(R) licensed
merchandise and publications in the UK will not be renewed beyond 31 December
2003.  Mattel advised that as a result of a recent internal group restructuring,
Mattel will be taking this activity in-house with effect from January 2004.


Given the continued expansion of the ER Group, its focus on investing in its
owned properties and the recent success of Basil Brush(R) and Postman Pat(R),
the ER Board considers that the termination of the agency agreement with Mattel
will not have a material impact on the future profitability of the ER Group. In
addition, Link Licensing Ltd is entitled to a compensation payment on
termination which is the equivalent of 1.5 times the average commissions
retained by Link Licensing Ltd under the agency agreement during the 3 years
immediately preceding its termination.


Entertainment Rights Distribution Ltd will continue its representation of the
Barbie(R) franchise through its long term television and home entertainment
licensing agreements with Mattel. Total units sold to-date under ER management
of the feature films BarbieTM in the Nutcracker and BarbieTM as Rapunzel exceed
5 million units with television sales to over 90 countries.  In March 2003, ER
and Mattel announced that ER had secured worldwide (excluding North America)
television and video rights to the third successive BarbieTM movie, BarbieTM of
Swan Lake which is currently scheduled for release in October 2003.


Commenting, Mike Heap Entertainment Rights' Chief Executive said:


"In light of Mattel's recent internal group restructuring, it is understandable
that they have decided to take licensing and merchandising activities in-house
consistent with their global operations. We enjoy an excellent long term
partnership with Mattel and the highly successful BarbieTM television and video
franchise distribution remains with us on long term contract.  We look forward
to continuing this success and our relationship with Mattel with the release of
the third BarbieTM feature, BarbieTM of Swan Lake, later this year. Current
trading within the Group continues in line with market expectations."


Richard Dickson, Senior Vice President Worldwide Consumer Products of Mattel
said:


"Following our recent internal group restructure and in keeping with our global
activities, we have decided to manage the UK licensed merchandise operations
in-house.  We are pleased to continue our partnership with Entertainment Rights
on the BarbieTM television and video contracts, which have been hugely
successful to date."


Barbie(R) and associated trademarks are owned by and used under licence from
Mattel Inc. (c) 2003 Mattel Inc. All Rights Reserved.


                                      Ends


Enquiries


Elizabeth Gaines
Finance Director
Entertainment Rights Plc                                 Tel 020 8762 6200

Tim Spratt/Michelle Morton
Financial Dynamics                                       Tel 020 7831 3113


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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