4Kids Entertainment, Inc. (NYSE: KDE), a global provider of children’s entertainment and merchandise licensing, today announced financial results for the third quarter of 2007 and for the nine months ended September 30, 2007.

Net revenues in the third quarter of 2007 totaled $12.2 million from continuing operations as compared to $17.6 million for the same period in 2006. The Company’s net loss for the quarter ended September 30, 2007 was $(4.2) million, or $(0.31) per diluted share (consisting of a loss from continuing operations of $(4.2) million, or $(0.31) per diluted share) as compared to a net loss of approximately $(265,000), or $(0.02) per diluted share, in the same period in 2006 (consisting of a loss from continuing operations for the third quarter of 2006 of $(231,000), or $(0.02) per diluted share and a loss from discontinued operations of $(34,000), or $(0.00) per diluted share). The diluted weighted average common shares outstanding for the quarter ended September 30, 2007 was 13,211,222 shares compared with 13,100,477 shares for the same period in 2006. The Company has reported the results of Summit Media, its media buying subsidiary, as a discontinued operation since its operation ceased in June 2006.

For the nine months ended September 30, 2007, net revenues totaled $39.1 million from continuing operations compared to $53.5 million for the same period in 2006. The Company’s net loss for the nine months ended September 30, 2007 was $(6.6) million, or $(0.50) per diluted share (consisting of loss from continuing operations of $(6.6) million, or $(0.50) per diluted share), as compared to net income for the nine months ended September 30, 2006 of $1.3 million, or $0.10 per diluted share (consisting of income from continuing operations of $775,000, or $0.06 per diluted share, and income from discontinued operations of $542,000, or $0.04 per diluted share). The diluted weighted average common shares outstanding for the nine months ended September 30, 2007 were 13,196,621 shares compared with 13,373,422 shares for the same period in 2006.

Al Kahn, Chairman and CEO of 4Kids Entertainment, stated, “While we are disappointed by the financial results so far this year, we believe that we have taken important steps to strengthen our business for 2008 and beyond. On October 24, 2007, we released the highly anticipated Chaotic Trading Card Game to comic and hobby stores nationwide and launched the public beta version of the Chaotic website, www.chaoticgame.com. We expect sales of the Chaotic Trading Card Game to the comic and hobby channel to contribute to revenues in the fourth quarter. Beginning in the first quarter of 2008, the Chaotic Trading Card Game will be distributed to the mass market. Chaotic represents a potentially dramatic shift in our business model as we will be able to add the gross revenues and profits from the distribution and sale of trading cards to the revenues from our share of the royalties that we receive in our traditional licensing business.”

“In addition, on October 3, 2007, we announced a new five-year broadcast deal with The CW Network, under which we will provide children's programming on Saturday mornings from 7 a.m. until 12 p.m. beginning in the 2008-09 broadcast season. We believe this deal will drive greater exposure for our hit properties and provide us with the opportunity to build ratings and increase advertising revenues over the long-term. Our strong balance sheet enables us to be pursue opportunities that we expect will increase shareholder value,” concluded Kahn.

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