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EMAK Worldwide Announces Wind Down of Relationship With Burger King Corp.
Thursday, October 08, 2009 4:50 PM


(Source: Business Wire)trackingEMAK 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.



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