Financial Expectations for Fiscal Year 2009 Remain Unchanged

LOS ANGELES--(BUSINESS WIRE)--Oct. 8, 2009-- EMAK Worldwide, Inc. (OTC: EMAK), a leading marketing services firm, today announced that after the second quarter of 2010 its Equity Marketing agency will no longer be an approved premiums manufacturing agency of record for Burger King Corp. EMAK advises that the client loss will not impact the Company’s financial results for the current fiscal year.

As reported in EMAK’s financial statements, Burger King-related revenues represent a significant portion of EMAK’s total revenues.

“We’re passionate about the marketing industry and have sharp insights and expertise to share with our other clients,” said Jim Holbrook, EMAK’s Chief Executive Officer. “As a family of marketing agencies, we have significant resources in place to win exciting new clients. We are also adding digital expertise to our ranks, which we will discuss more in-depth in the coming weeks. As a company we are resilient, and our commitment to our promotional products business is unswerving.

“Our expectations for positive EBITDA before charges and positive cash flow for 2009 remain unchanged. We have ample cash and equivalents on hand of approximately $13.5 million as of September 30, 2009, and a $7.5 million untapped bank line. We are in the process of evaluating the full impact of the loss of Burger King. EMAK will release financial results for the third quarter ended September 30 in late October, in line with our normal reporting schedule. At that time we will discuss EMAK’s plans for 2010 and beyond,” concluded Holbrook.

Peter Ackerman, Managing Director of Rockport Capital Inc. and EMAK’s preferred stockholder, added, “While the Burger King setback is unfortunate, I am in full support of Jim and the entire management team and look forward to supporting them as they grow the business.”

As an agency, Equity Marketing brings to bear a wealth of talent and capabilities and a reputation that is unparalleled in the industry. With a seasoned team of employees in Los Angeles as well as Chicago, Indianapolis, Miami, Minneapolis, San Francisco, Hong Kong and China, the agency is a turnkey solution provider that offers licensor relationships, superior creative and product development teams, industrial design, engineering, QA/QC management, low-cost manufacturing solutions, freight management and fulfillment.

About EMAK Worldwide, Inc.

EMAK Worldwide, Inc. is the parent company of a family of marketing services agencies including Equity Marketing, Logistix, Neighbor and Upshot. Its agencies are experts in “consumer activation” by offering strategy-based marketing programs that directly impact consumer behavior. The agencies provide strategic planning and research, consumer insight development, entertainment marketing, design and manufacturing of custom promotional products, kids marketing, event marketing, shopper marketing and environmental branding. The Company’s blue-chip clients include Kellogg, Kohl’s, Kraft, Macy’s, Procter & Gamble and Safeway, among others. Headquartered in Los Angeles, EMAK has offices in Chicago and Hong Kong. More information about EMAK Worldwide is available on the Company’s website at www.emak.com.

Certain expectations and projections regarding the future performance of EMAK Worldwide, Inc. discussed in this news release are forward-looking and are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These expectations and projections are based on currently available competitive, financial and economic data along with the Company’s operating plans and are subject to future events and uncertainties. Management cautions the reader that the following factors, among others, could cause the Company’s actual consolidated results of operations and financial position in 2009 and thereafter to differ significantly from those expressed in forward-looking statements: the Company’s dependence on a single customer; the significant quarter-to-quarter variability in the Company’s revenues and net income; the Company’s dependence on the popularity of licensed entertainment properties and the ability to license, develop and market new products; the Company’s dependence on foreign manufacturers; the Company’s need for additional working capital; the negative results of litigation, governmental proceedings or environmental matters; and the potential negative impact of past or future acquisitions. The Company undertakes no obligation to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks highlighted herein should not be assumed to be the only items that could affect the future performance of the Company.

Source: EMAK Worldwide, Inc.

EMAK Worldwide, Inc.
Media and investor inquiries:
Jim Holbrook
Chief Executive Officer
323-932-4068