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FOR:                         4Kids Entertainment, Inc.
                                 Sara Stern Levin
                                 646-822-4257
                                 slevin@4Kidsent.com

KCSA                       Todd Fromer / Garth Russell
CONTACTS:            (212) 896-1215 / (212) 896-1250
                                  tfromer@kcsa.com / grussell@kcsa.com

4Kids Entertainment Reports Year-End 2006 Results

_______

NEW YORK, March 16, 2007 – 4Kids Entertainment, Inc. (NYSE: KDE)

, a global provider of children’s entertainment and merchandise licensing, today announced financial results for the quarter and year ended December 31, 2006.

Net revenues in the fourth quarter of 2006 totaled $18.3 million, as compared to $23.5 million for the same period in 2005. The Company’s net loss for the quarter ended December 31, 2006 was $(2.3) million, or $(0.18) per diluted share (consisting of a loss from continuing operations of $(2.5) million, or $(0.19) per diluted share and income from discontinued operations of $0.2 million or $0.01 per diluted share), as compared to net income of $0.5 million, or $0.04 per diluted share, for the fourth quarter of 2005 (consisting of a loss from continuing operations of $(1.2) million, or $(0.09) per diluted share and income from discontinued operations of $1.7 million, or $0.13 per diluted share). As of June 30, 2006 the Company’s media buying subsidiary, The Summit Media Group, Inc., ceased operations and reports Summit’s results as a discontinued operation.

For the year ended December 31, 2006, net revenues totaled $71.8 million, as compared to $80.6 million for the year ended December 31, 2005. The Company’s net loss for the year ended December 31, 2006 was $(1.0) million, or $(0.08) per diluted share (consisting of a loss from continuing operations of $(1.7) million, or $(0.13) per diluted share and income from discontinued operations of $0.7 million, or $0.05 per diluted share), compared to net income of $5.1 million, or $0.37 per diluted share for the year ended December 31, 2005 (consisting of income from continuing operations of $3.0 million, or $0.22 per diluted share and income from discontinued operations of $2.0 million, or $0.15 per diluted share). The diluted weighted average common shares outstanding for the year ended December 31, 2006 were 13,104,051 shares compared with 13,536,830 shares for the year ended December 31, 2005.

Alfred R. Kahn, 4Kids Entertainment’s Chairman and Chief Executive Officer, said, “Our financial results for 2006 were disappointing with the Company losing $1.7 million from continuing operations. Net revenues were down for the year as a result of decreased licensing revenue from the “Teenage Mutant Ninja Turtles” and “Yu-Gi-Oh!” properties and a decline in ad sales revenues from 4Kids TV. We also incurred substantial severance and other related costs in 2006.”

“The Company started a number of important initiatives in 2006 that we are hopeful will benefit the Company beginning in 2007” said Kahn. “We entered into a relationship with Microsoft and, in the fall of 2006, launched Viva Piñata, an animated series based on the Microsoft property. In December 2006, we started a trading card company, TC Digital Games LLC, and purchased a 50% interest in the Chaotic trading card game companion website which, when it goes live in May 2007, will enable kids to upload codes from the Chaotic trading cards to the website and play the Chaotic trading card game online. We believe that the trading card company and the Chaotic website will also provide the Company with platforms upon which to launch future properties and will enhance the Company’s ability to compete in the digital universe.”

“We also implemented a number of cost-cutting initiatives aimed at reducing overall expenses including negotiating a multi-year extension of our agreement with Fox to broadcast 4Kids TV through the 2007-2008 season,” Kahn continued.

“We are excited about next week’s theatrical release by Warner Bros. and The Weinstein Company of TMNT, the new Teenage Mutant Ninja Turtles movie. We are hopeful that the movie will drive demand for Turtles merchandise, including the new TMNT video game from Ubisoft. We also look forward to the late May release of the Chaotic trading card game to comic and hobby stores and to the launch of its companion website, www.chaoticgame.com, at that time.”

“With cash and investments of $111.0 million and no debt at December 31, 2006, 4Kids remains well positioned for the future,” concluded Kahn.

About 4Kids Entertainment

Headquartered in New York City with an international office in London, 4Kids Entertainment, Inc. (NYSE: KDE), is a global provider of children’s entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries, provides domestic and international merchandise licensing; product development; television, film, music and home video production and distribution; and Web site development. For further information, please visit the Company’s Web sites at www.4KidsEntertainment.com and www.4Kids.TV.

The information contained in this press release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors beyond the Company’s control, including general economic conditions, consumer spending levels, competition from toy companies, motion picture studios and other licensing companies, the uncertainty of public response to the Company’s properties and other factors could cause actual results to differ materially from the Company’s expectations.

Tables follow







4KIDS ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2006 and 2005
(In thousands of dollars, except share data)


Assets 2006
2005
Current assets:      
     Cash and cash equivalents  $  18,066   $  35,142  
     Investments  92,910   78,383  


     Total cash and investments  110,976   113,525  
 
     Accounts receivable - net  30,498   32,193  
     Prepaid 4Kids TV broadcast fee, net of  
       accumulated amortization  --   6,606  
     Prepaid income taxes  5,924   2,312  
     Prepaid expenses and other current assets  3,916   1,683  
     Current assets from discontinued operations  326   2,316  
     Deferred income taxes  707   466  


     Total current assets  152,347   159,101  
 
Property and equipment - net  2,126   2,853  
 
Other assets: 
     Accounts receivable - non-current, net  138   891  
     Investment in unconsolidated affiliate  2,702   --  
     Film and television costs - net  14,827   12,208  
     Non-current assets from discontinued operations  1,333   --  
     Deferred income taxes, non-current  1,733   1,971  
     Other assets - net  6,189   6,914  


Total assets  $181,395   $183,938  


Liabilities and stockholders' equity 
Current liabilities: 
     Due to licensors  $    6,536   $  13,503  
     Accounts payable and accrued expenses  14,317   9,239  
     Current liabilities from discontinued operations  20   1,486  
     Deferred revenue  5,014   5,297  


     Total current liabilities  25,887   29,525  
 
     Deferred rent  771   1,016  


     Total liabilities  26,658   30,541  


Commitments and contingencies  
 
Stockholders' equity 
     Preferred stock, $.01 par value - authorized, 3,000,000 shares; none issued  --   --  
     Common stock, $.01 par value - authorized, 40,000,000 shares; 
       issued, 14,933,218 and 14,826,643 shares; outstanding 13,183,218 and 
         13,076,643 shares in 2006 and 2005, respectively  149   148  
     Additional paid-in capital  62,859   61,415  
     Accumulated other comprehensive income  1,329   428  
     Retained earnings  123,649   124,655  


   187,986   186,646  
          Less- cost of 1,750,000 treasury shares in 2006 and 2005  33,249   33,249  


   154,737   153,397  


Total liabilities and stockholders' equity  $181,395   $183,938  




4KIDS ENTERTAINMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2006, 2005 AND 2004
(In thousands of dollars, except share data)



2006
2005
2004
Net revenues   $        71,781   $       80,607   $       99,189  



Cost and expenses: 
     Selling, general and administrative  39,155   33,835   33,437  
     Production service costs  11,259   8,851   10,029  
      Amortization of television and film costs  8,041   9,790   9,639  
     Amortization of 4Kids TV broadcast fee  22,462   26,408   27,859  



     Total costs and expenses  80,917   78,884   80,964  



(Loss) income from operations  (9,136 ) 1,723   18,225  
 
Other income: 
     Interest income  4,143   2,834   1,469  
     Gain on sale of investment in equity securities  --   234   --  



      Total other income  4,143   3,068   1,469  



(Loss) income before income taxes  (4,993 ) 4,791   19,694  
 
(Benefit from) provision for income taxes  (3,506 ) 1,762   7,907  
Loss from unconsolidated operations - net of a tax benefit of $218  (280 ) --   --  
Minority interest - net of tax of $30 
   39   --   --  



(Loss) income from continuing operations  (1,728 ) 3,029   11,787  
 
Income from discontinued 
operations  722   2,040   943  



Net (loss) income  $       (1,006 ) $         5,069   $       12,730  



Per share amounts: 
 Basic (loss) earnings per common share 
   Continuing operations  $         (0.13 ) $           0.23   $           0.86  
   Discontinued operations  0.05   0.16   0.07  



 Basic (loss) earnings per common share  (0.08 ) $           0.39   $           0.93  



Diluted (loss) earnings per common share 
  Continuing operations  $         (0.13 ) $           0.22   $           0.82  
  Discontinued operations  0.05   0.15   0.07  



Diluted (loss) earnings per common share  $         (0.08 ) $           0.37   $           0.89  



Weighted average common 
shares outstanding - basic  13,104,051   13,115,687   13,683,756  



Weighted average common 
shares outstanding - diluted  13,104,051   13,536,830   14,335,343  






The following information was filed by 4Licensing Corp on Friday, March 16, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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