Exhibit 99.1

   

MARVEL REPORTS Q1 EPS OF $0.58 AND RAISES 2008 FINANCIAL GUIDANCE

Iron Man Launches with #1 Opening Weekend Domestic Box Office

of $100.75 Million, the 2nd Best Non-Sequel Debut Ever,

and Worldwide Box Office of $201 Million

Marvel Announces Feature Film Release Slate: Iron Man Sequel and Thor in Summer 2010 and Two Avenger-themed Movies in Summer 2011

New York, New York – May 5, 2008 -- Marvel Entertainment, Inc. (NYSE: MVL), a global character-based entertainment and licensing company, today reported operating results for its first quarter ended March 31, 2008.  Marvel also announced the opening weekend box office performance of its debut Iron Man feature film, and unveiled its self-produced feature film slate through 2011.  Iron Man debuted this weekend, generating an estimated domestic box office of $100.75 million for the three-day weekend.  This performance represents the 10th best opening weekend ever and the 2nd best non-sequel feature film debut ever - second only to Spider-Man, also a Marvel character.  On a worldwide basis, Iron Man has generated an estimated $201 million in global box office to date.   In keeping with the Company’s increasing focus on entertainment and licensing opportunities, Marvel also announced it has substantially completed its exit from direct toy operations and consequently will no longer report the results of its remaining toy business as a separate reportable segment effective with Q1 2008.

Marvel Entertainment, Inc. Segment Net Sales and Operating Income (Unaudited) (in millions)
		Three Months Ended March 31,
		2008	2007
Licensing (1):	Net Sales	$ 84.6	$119.7
	Operating Income	85.4	98.8
Publishing:	Net Sales	26.5	27.5
	Operating Income	9.9	11.5
Film Production:  Operating Loss		(2.0)	(3.0)
All Other (1):	Net Sales	1.5	4.2
	Operating Income	(5.8)	(6.2)
TOTAL NET SALES		$  112.6	$  151.4
TOTAL OPERATING INCOME		$    87.5	$  101.1

(1) Income from Marvel’s licensee Hasbro previously reported in the Toy segment is now recorded within the Licensing segment.  Marvel’s remaining in-licensed toy lines are now aggregated with corporate overhead in “All Other.”  Q1 2007 segment information has been restated accordingly.

Reflecting contributions in the year-ago first quarter related to the coming release of Spider-Man III, Marvel reported Q1 2008 net sales of $112.6 million and net income of $45.2 million, or $0.58 per diluted share, compared to net sales of $151.4 million and net income of $46.8 million, or $0.54 per diluted share, in Q1 2007.

Marvel Entertainment Q1 2008 Results, 5/5/08 page 2 of  9      

Feature Film Slate Update:

Marvel today updated its feature film slate strategy and plans for the next three years, locking in key release windows for its character franchises.  In order to focus its attention on maximizing the success of an Iron Man sequel and the launch of Thor in the summer of 2010 and because Marvel believes that the summer is the optimal time to launch a new property, the Company will not release a self produced film in 2009.  Marvel plans to launch its 2010 film slate with the release of the sequel, Iron Man 2, on April 30, 2010, followed by the launch of Thor on June 4, 2010.    Additionally, Marvel is planting its feature film stakes for summer 2011 with an Avengers-themed summer – a two-picture project which will debut on May 6, 2011 with The First Avenger: Captain America (working title), followed by The Avengers in July 2011.

Marvel’s Chairman, Morton Handel, commented, “Adjusting for the strong year-ago contribution from the Spider-Man JV, Marvel’s Q1 2008 operating results continued to demonstrate strong global demand for consumer products based on the Company’s portfolio of characters.  Marvel’s self-produced feature film slate launched this past weekend with a performance that firmly establishes Iron Man as a major new film franchise, and the Company eagerly awaits the June premiere of The Incredible Hulk, Marvel’s second self-produced film.  In addition, Marvel has been investing in other important areas of growth such as the Internet where, to lead the Company’s newly formed Global Digital Media Group, Marvel recently announced the hiring of Ira Rubenstein.  Marvel has a strong foundation to build from, and the Company is adding infrastructure to maximize these opportunities.”

First Quarter Segment Review:

· Marvel is now reporting the net sales and operating contribution from its license agreement with Hasbro within the Licensing segment.  Net sales in the Licensing Segment decreased in Q1 2008 principally reflecting a decline in net sales from the Spider-Man merchandising joint venture (JV) with Sony and a decrease in income from Hasbro to $8.3 million, compared to income from Hasbro of $20.8 million in Q1 2007.  

Net sales for the Spider-Man JV declined to $29.7 million in Q1 2008, versus $56.9 million in Q1 2007.  The year-over-year decline in JV net sales was anticipated, as the high level of net sales in Q1 2007 was triggered by “on shelf dates” related to the May 2007 release of Spider-Man III.  This decline was offset in part by increases in domestic and international consumer products licensing, as well as from a higher level of license revenue from Marvel Studios related to the Spider-Man, X-Men and Fantastic Four movie properties.  Marvel’s Q1 2008 Licensing segment operating income results also reflect settlement payments from two licensees in connection with the termination of their respective interactive license agreements.  The settlements totaled $19 million and were recorded as other income.  Operating margin in the Licensing segment was 101% in Q1 2008, reflecting the benefit of these settlement payments included in operating income but not included in net sales.  The operating margin for the Licensing segment was 83% in Q1 2007. 

Marvel Entertainment, Inc. Licensing Sales by Division (Unaudited) (1) (in millions)
	Three Months Ended
	3/31/08	3/31/07
Domestic Consumer Products	$  25.7	$  41.0
International Consumer Products	15.0	18.4
Spider-Man L.P. (Domestic and International)	29.7	56.9
Marvel Studios	14.2	3.4
Total Licensing Segment	$  84.6	$119.7

Marvel Entertainment Q1 2008 Results, 5/5/08 page 3 of  9      

(1) As noted above, income from Marvel’s toy licensee Hasbro, Inc. is now reflected within Marvel’s Licensing segment in Domestic and International Consumer Products.  The year-ago period has been restated to reflect this treatment.  In prior periods, income from Hasbro had been recorded within the separately reported Toy segment.

· Marvel’s Publishing Segment net sales declined by $1.0 million or 4% to $26.5 million in Q1 2008 principally due to the timing of major publishing initiatives.  Q1 2008 net sales reflected a decline in comic book sales within the direct channel and lower advertising and custom sales, offset in part by continued strong growth in the Mass Market channel.  The year-over-year decline in direct channel sales principally reflects strong sales of high profile titles Civil War and The Death of Captain America in the year ago period, versus no comparable specialty titles in Q1 2008.  Operating income in the Publishing segment declined by 14% on a year-over-year basis to $9.9 million in Q1 2008 with an operating margin of approximately 37% compared to approximately 42% in the prior-year-period.  Based on its planned slate of publishing initiatives, including the release of the Secret Invasion series in late Q2 2008, Marvel expects its Publishing segment to return to traditional margins for the full year 2008.

· Marvel’s Film Production segment operating losses were $2.0 million for Q1 2008, compared to $3.0 million in Q1 2007, reflecting overhead costs that were capitalized into Marvel’s self-produced films in Q1 2008.  Film Production segment operating costs consist primarily of employee compensation and the expenses associated with Marvel Studios’ office in California.

· Among the items in All Other is Corporate overhead, which was $6.5 million in Q1 2008 and $3.6 million in Q1 2007.  The difference in year over year Corporate overhead is principally attributed to a one time credit in Q1 2007 of $1.9 million associated with pension accounting.  All Other also includes the results of in-licensed toy lines: for Q1 2008, net sales of $1.5 million and operating income of $0.7 million; for Q1 2007, net sales of $4.2 million and an operating loss of $2.6 million.

Balance Sheet And Share Repurchase Update:

As of March 31, 2008, Marvel had cash and investments of $150.6 million (including $23.2 million in restricted cash) with no outstanding borrowings under its $100 million line of credit with HSBC Bank.  In Q1 2008, Marvel purchased approximately 414,000 shares of its common stock, at an average price of $24.01, for total consideration of $9.9 million.  The Company has approximately $128 million remaining under its share repurchase authorizations, including its $100 million February 2008 authorization.

Marvel Studios Entertainment Pipeline (Development and release dates for licensed properties are controlled by studio partners)
Feature Film Projects Being Developed by Marvel – partial list
Film/Character	Studio	Status
Iron Man	Marvel	Released May 2, 2008
The Incredible Hulk	Marvel	Scheduled for June 13, 2008 release
Iron Man 2	Marvel	Scheduled for April 30, 2010 release
Thor	Marvel	Scheduled for June 4, 2010 release
The First Avenger: Captain America (working title)	Marvel	Scheduled for May 6, 2011 release
The Avengers	Marvel	Scheduled for July 2011 release
Ant-Man	Marvel	Writer/director engaged
Licensed Marvel Character Feature Film Line-Up
Film/Character	Studio/Distributor	Status
Punisher: War Zone	Lionsgate	Scheduled for December 5, 2008 release
X-Men Origins: Wolverine	Fox	Scheduled for May 1, 2009 release
Marvel Character Animated TV Projects
Character	Studio	Status

Marvel Entertainment Q1 2008 Results, 5/5/08 page 4 of  9      

Fantastic Four: World’s Greatest Heroes		Moonscoop SAS (France)	26, 30-minute episodes airing internationally.
Spectacular Spider-Man		Sony	Currently airing on Kids’ WB
Wolverine and the X-Men		First Serve Toonz (India)	26, 30-minute episodes in development; scheduled for Spring 2009 release on Nicktoons.
Iron Man: Armored Adventures		Method Films (France)	26, 30-minute episodes in development; scheduled for Spring 2009 release on Nicktoons.
Hulk Gamma Corps		TBD	In development; scheduled for Spring 2009 release.
Super Hero Squad		TBD	In development; scheduled for Spring 2009 release.
Marvel Character Animated Direct-to-DVD Projects
Title		Partner	Status
Next Avengers: Heroes of Tomorrow		Lionsgate	Scheduled for Late-2008 release.
Hulk Vs.		Lionsgate	Scheduled for Early-2009 release.
Thor: Son of Asgard		Lionsgate	Scheduled for Late-2009 release.
Planet Hulk		Lionsgate	Scheduled for Early 2010 release.
Marvel Character Live Stage Projects
Project	Producers			Status
Spider-Man, the Musical	Hello Entertainment/David Garfinkle, Martin McCallum, Marvel Entertainment, SONY Pictures Entertainment			In development/opening date to be determined; Julie Taymor director; music & lyrics by U2’s Bono and The Edge
Marvel 2008 Video Game Releases (Release dates controlled by Publishing partner)
Publisher	Title			Status
Sega	Iron Man			Released, Friday, May 2, 2008.
Sega	The Incredible Hulk			Scheduled for release Tuesday, June 3, 2008.
Activision	Spider-Man: Web of Shadows			Scheduled for release Fall 2008.

Exit from Toy Operations

In Q1 2008, Marvel substantially completed its exit from direct toy operations that were primarily focused on the in-licensed Curious George toy line and consequently will no longer report “Toys” as a separate reportable segment.  Marvel is now reporting the net sales and operating contribution from its license agreement with Hasbro within the Licensing segment.  Marvel has assigned the Curious George license to a division of Jakks Pacific but has retained the minimum guarantee obligation associated with this license, which remains fully accrued as of March 31, 2008.  Revenues and operating income contribution from the remaining sale of toys are now aggregated within the category “All Other” which also includes Corporate overhead.

Financial Guidance:

Reflecting the Company’s strong first quarter performance, Marvel today raised its 2008 financial guidance for net sales, net income and diluted EPS as highlighted in the table below.  Marvel’s 2008 financial guidance does not include revenues or expenses related to the box office, home video/DVD, TV or media sales performance of the company’s self-produced Iron Man or The Incredible Hulk films as the Company does not currently have sufficient performance information to reliably estimate the impact of these films on the Company's Filmed Production financial results.  Marvel’s 2008 financial guidance does reflect the overhead costs related to its film production business, and the interest and fees related to the origination of Marvel’s $525 million film slate facility, as well as the anticipated results of the Company’s licensing, publishing and toy operations (including Iron Man and Hulk movie toys and merchandising).  The primary assumptions for the Company’s full year 2008 financial guidance as noted below have been updated to reflect the elimination of Marvel’s Toy segment and the associated restatement noted earlier in this press release.

Marvel Entertainment Q1 2008 Results, 5/5/08 page 5 of  9      

Marvel Entertainment – Financial Guidance
(in millions, except per-share amounts)		Updated 2008 Guidance (1)	Previous 2008 Guidance (1) (2)	2007 Actual
Net sales		$370 - $400	$360 - $400	$486
Net income		$104 - $122	$100 - $118	$140
Diluted EPS		$1.35 - $1.55	$1.30 - $1.50	$1.70
(1)	Marvel’s financial guidance for 2008 does not reflect revenues or expenses related to the box office, home video/DVD, TV or media sales performance from the Company’s self-produced films, Iron Man and The Incredible Hulk.
(2)	As provided on February 19, 2008.

Primary Assumptions/Drivers for Full Year 2008 Financial Guidance:

· Marvel’s Licensing segment is expected to contribute net sales of approximately $240M - $265M in 2008 and to generate an operating margin of approximately 65% -75%.  Marvel expects that full year-2008 Licensing segment net sales (now including income from Hasbro) will have the following approximate mix:

- 49% from Domestic Consumer Products, including income from Hasbro.

- 31% from International Consumer Products, including income from Hasbro.

- 13% from Spider-Man L.P.

- 7% from Marvel Studios (excludes revenues related to Marvel’s self-produced feature films)

· Marvel’s Publishing segment is expected to contribute net sales of approximately $130M – 135M in 2008 and to generate an operating margin of approximately 41% - 43%.

· Reflecting corporate overhead and anticipated contributions from in-licensed toy lines, Marvel expects to report net sales of approximately $1.5M – $2.5M in 2008 in the “All Other” category.  Those sales are anticipated to generate a breakeven operating margin.  Traditional corporate overhead, excluding toy contributions, is expected to approximate $26.0 million in 2008 compared to $22.4 million in 2007, reflecting increasing levels of personnel and other expenses.

· Marvel anticipates an effective tax rate of 39% in 2008.

· Marvel’s guidance is based on 78.2 million diluted shares for 2008 and does not reflect any future share repurchase activity.

Marvel cautions investors that variations in the timing of licenses and entertainment events, the timing of their revenue recognition, and their level of success result in variations and uncertainty in forecasting the Company’s financial results.  These factors could have a material impact on year-over-year annual and sequential quarterly results comparisons as well as on Marvel’s ability to achieve its financial guidance.

About Marvel Entertainment, Inc.

With a library of over 5,000 high-profile characters built over more than sixty years of comic book publishing, Marvel Entertainment, Inc. is one of the world's most prominent character-based entertainment companies.  Marvel utilizes its character franchises in licensing, entertainment (via Marvel Studios), and publishing (via Marvel Comics), with emphasis on feature films, home DVD, consumer products, video games, action figures and role-playing toys, television and promotions.  Marvel's strategy is to leverage its franchises in a growing array of opportunities around the world.  For more information visit www.marvel.com.

Except for any historical information that they contain, the statements in this news release regarding Marvel's plans are forward-looking statements that are subject to certain risks and uncertainties, including a decrease in the level of media exposure or popularity of Marvel's characters, financial difficulties of Marvel's licensees, changing consumer preferences, delays and cancellations of movies and television productions based on Marvel characters, and concentration of Marvel’s toy business in a single licensee.

In addition, in connection with Marvel Studios’ film production operations, including those related to the slate of feature films Marvel plans to produce on its own with proceeds from its $525 million film slate facility (the “Film Facility”), the following factors, among others, could cause Marvel’s financial performance to differ materially from that expressed in any forward-looking statements: (i) Marvel Studios’ potential inability to attract and retain

Marvel Entertainment Q1 2008 Results, 5/5/08 page 6 of  9      

creative talent, (ii) the potential lack of popularity of Marvel’s films, (iii) the expense associated with producing films, (iv) union activity or other events which could interrupt film production, including strikes by Hollywood writers, directors and actors, (v) changes or disruptions in the way films are distributed, including a decline in the profitability of the DVD market, (vi) piracy of films and related products, (vii) Marvel Studios’ dependence on a single distributor for its self-produced films, (viii) that Marvel will depend on its film distributors for the implementation of internal controls related to the accounting of film-production activities, (ix) Marvel’s potential inability to meet the conditions necessary for an initial funding of a film under the Film Facility, (x) Marvel’s potential inability to obtain financing to make more than four films if certain tests related to the economic performance of the film slate are not satisfied (specifically, an interim asset test and a foreign pre-sales test) and (xi) fluctuations in reported income or loss related to the accounting of film-production activities.

These and other risks and uncertainties are described in Marvel's filings with the Securities and Exchange Commission, including Marvel's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Marvel assumes no obligation to publicly update or revise any forward-looking statements.

For further information contact:
Matt Finick – SVP Corporate Development Marvel Entertainment, Inc. 310/550-3132 mfinick@marvel.com	David Collins, Richard Land Jaffoni & Collins 212/835-8500 mvl@jcir.com

Marvel Entertainment Q1 2008 Results, 5/5/08 page 7 of  9      

MARVEL ENTERTAINMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(unaudited)

		Three Months Ended
		March 31,
		2008		2007
		(in thousands, except per share data)
Net sales	$	112,567	$	151,402
Costs and expenses:
Cost of revenues (excluding depreciation expense)		12,467		14,886
Selling, general and administrative		31,519		33,270
Depreciation and amortization		375		1,840
Total costs and expenses		44,361		49,996
Other (expense) income, net		19,326		(349	)
Operating income		87,532		101,057
Interest expense		3,086		2,902
Interest income		979		467
Income before income tax expense and minority interest		85,425		98,622
Income tax expense		33,210		38,311
Minority interest in consolidated joint venture		6,984		13,469
Net income	$	45,231	$	46,842
Basic and diluted net income per share:
Weighted average shares outstanding:
Weighted average shares for basic earnings per share		77,423		83,161
Effect of dilutive stock options, warrants and restricted stock		803		2,910
Weighted average shares for diluted earnings per share		78,226		86,071
Net income per share:
Basic	$	0.58	$	0.56
Diluted	$	0.58	$	0.54
Comprehensive income:
Net income	$	45,231	$	46,842
Other comprehensive income (loss)		145		(1,183	)
Comprehensive income	$	45,376	$	45,659

Marvel Entertainment Q1 2008 Results, 5/5/08 page 8 of  9      

MARVEL ENTERTAINMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

	March 31,			December 31,
	2008			2007
	(in thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	65,547		$	30,153
Restricted cash		23,201			20,836
Short-term investments		61,854			21,016
Accounts receivable, net		19,997			28,679
Inventories, net		11,308			10,647
Income tax receivable		–			10,882
Deferred income taxes, net		23,374			21,256
Prepaid expenses and other current assets		6,016			4,245
Total current assets		211,297			147,714
Fixed assets, net		2,374			2,612
Film inventory		303,322			264,817
Goodwill		346,152			346,152
Accounts receivable, non–current portion		826			1,300
Income tax receivable, non–current portion		5,906			4,998
Deferred income taxes, net		36,773			37,116
Deferred financing costs		10,155			11,400
Other assets		995			1,249
Total assets	$	917,800		$	817,358
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,428		$	3,054
Accrued royalties		82,671			84,694
Accrued expenses and other current liabilities		30,649			37,012
Deferred revenue		95,360			88,617
Film facilities (1)		57,938			42,264
Income tax payable		17,127			–
Minority interest to be distributed		45			556
Total current liabilities		285,218			256,197
Accrued royalties, non-current portion		9,931			10,273
Deferred revenue, non-current portion		56,831			58,166
Film facilities, non-current portion (1)		279,462			246,862
Income tax payable, non-current portion		59,590			54,066
Other liabilities		9,496			10,291
Total liabilities		700,528			635,855
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par value, 100,000,000 shares authorized, none issued		–			–
Common stock, $.01 par value, 250,000,000 shares authorized, 133,404,306 issued and 77,435,629 outstanding in 2008 and 133,179,310 issued and 77,624,842 outstanding in 2007		1,334			1,333
Additional paid-in capital		729,152			728,815
Retained earnings		394,821			349,590
Accumulated other comprehensive loss		(3,250	)		(3,395	)
Total stockholders’ equity before treasury stock		1,122,057			1,076,343
Treasury stock, at cost, 55,968,677 shares in 2008 and 55,554,468 shares in 2007		(904,785	)		(894,840	)
Total stockholders’ equity		217,272			181,503
Total liabilities and stockholders’ equity	$	917,800		$	817,358

(1) Balances as of March 31, 2008 do not reflect an estimate of cash flows to be received from films over the subsequent twelve-month period that are required to be used to repay Film Facility debt.  This estimate will affect the classification of film facilities borrowings as current or non-current and will be disclosed in Marvel’s first quarter 2008 Form 10-Q.

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MARVEL ENTERTAINMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	Three Months Ended
	March 31,
	2008			2007
	(in thousands)
Cash flows from operating activities:
Net income	$	45,231		$	46,842
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		375			1,840
Provision for doubtful accounts		–			425
Amortization of deferred financing costs		1,245			1,245
Unrealized loss on interest rate cap and foreign currency forward contracts		198			444
Non-cash charge for stock-based compensation		1,571			2,231
Excess tax benefit from stock-based compensation		–			(502	)
Loss on sale of equipment		5			–
Deferred income taxes		(4,057	)		15,607
Minority interest in joint venture (net of distributions of $7,279 in 2008 and $1,961 in 2007)		(511	)		11,508
Changes in operating assets and liabilities:
Accounts receivable		9,156			19,134
Income tax receivable		–			40,915
Inventories		(661	)		(891	)
Prepaid expenses and other current assets		(1,771	)		2,821
Film inventory		(38,505	)		(32,554	)
Other assets		56			23
Deferred revenue		5,408			(66,423	)
Income taxes payable		35,569			–
Accounts payable, accrued expenses and other current liabilities		(13,262	)		(18,376	)
Net cash provided by operating activities		40,047			24,289
Cash flows from investing activities:
Purchases of fixed assets		(142	)		(1,256	)
Expenditures for product and package design		–			(298	)
Sales of short-term investments		4,031			29,133
Purchases of short-term investments		(44,869	)		(48,009	)
Change in restricted cash		(2,365	)		(2,082	)
Net cash used in investing activities		(43,345	)		(22,512	)
Cash flows from financing activities:
Borrowings from film facilities		48,274			16,300
Borrowings from line of credit		–			2,000
Repayments of line of credit		–			(19,000	)
Deferred financing costs		–			(395	)
Purchases of treasury stock		(9,945	)		(22,169	)
Exercise of stock options		156			368
Excess tax benefit from stock-based compensation		–			502
Net cash provided by (used in) financing activities		38,485			(22,394	)
Effect of exchange rates on cash		207			18
Net increase (decrease) in cash and cash equivalents		35,394			(20,599	)
Cash and cash equivalents, at beginning of period		30,153			31,945
Cash and cash equivalents, at end of period	$	65,547		$	11,346

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