Statement from MGA Entertainment: Judge to Rule on MGA`s Motion for Stay Pending Appeal

LOS ANGELES--(Business Wire)--
On Friday, May 8, 2009, U.S. District Judge Stephen Larson granted MGA`s request
for an expedited hearing on the company`s right to continue making and selling
Bratz dolls until its case is heard by the Ninth U.S. Circuit Court of Appeals,
citing MGA`s "moving" arguments. The hearing will take place on Monday May 18,
2009. Highlights from MGA`s Motion include the following arguments, among
others:

"The MGA Parties seek a stay pending appeal of the injunctions…this Court
granted to Mattel on December 3, 2008.... The[se] Orders address a wide range of
highly complex and novel legal issues, as well as hotly disputed factual and
expert questions, and provide for relief that includes perhaps the largest
transfer of a brand in U.S. history and the largest toy recall in U.S. history,
with an enormous cost imposed on retailers, distributors [and] licensees.

"Mattel`s iteration of the brand will necessarily bear little resemblance to
MGA`s Bratz. Because the 12/3 Orders only grant Mattel `ownership' over two
dimensional drawings and a single sculpt that materially varies from the Bratz
products on the market today, Mattel will have to design its own Bratz dolls,
and entirely new environs for those dolls to live in. Although MGA may no longer
label them `Bratz,' the vast majority of the Bratz brand, as well as the
packaging, fashions, face paint, and marketing campaigns still belong
exclusively to MGA-as do all of the Bratz characters outside the original four….

"Yet the evidence in this case, and the harsh reality of the market place, have
already demonstrated that creativity and innovative thinking are not Mattel`s
strong suit, as evidenced by Mattel`s repeated failures to capture any
meaningful share of the `tween' market through their ill-fated `Flavas' line,
among others. Mattel`s devotion to Barbie and the corporate culture that Mattel
has developed to support its hegemony in the toy industry present a very real
danger to Bratz as a brand and to the availability of choice to consumers."

MGA Entertainment
Rachel Treister, 818.383.5200
Negar.Treister@gmail.com
or
Sandra Ravan, 818.894.2525 x6592
sravan@mgae.com

Copyright Business Wire 2009