HARVEY ENTERTAINMENT, whose roster of animated properties include CASPER,THE FRIENDLY GHOST, RICHIE RICH, LITTLE AUDREY, and BABY HUEY, has posted a1998 fourth quarter net loss of $5,869,000, compared to a net income of$627,000 for the fourth quarter in 1997, and a net loss of $11,238,000 forthe year ended December 31, 1998. Net operating revenues for the year-ended1998 were a negative $1,569,000, compared to revenues of $15,404,000 in1997. Meanwhile, the company announced that it has entered into adefinitive Stock Purchase Agreement with Roger A. Burlage, Michael R.Burns, Paul Guez, Ken Slutsky and The Kushner-Locke Company pursuant towhich Harvey will receive $11.5 million in cash and $5.5 million in commonstock of Kushner-Locke in consideration for newly-issued shares of Harvey'sSeries A Convertible Preferred Stock. Says Roger A. Burlage, "We wereattracted to Harvey because of its significant portfolio of world-renowncharacter assets which have achieved very impressive sales and box-officeperformance in several entertainment outlets." Harvey Entertainment hasrecently been the subject of rumors involving a possible takeover by MarvelEntertainment.
