As we bring the Popeye TV/DVD project to a close, I want to take this time to sincerely thank each and every one of you for your contributions to this project. We simply could not have achieved as much as we did this past year without the support and efforts of our licensees and partners.

When King Features first initiated its cross-platform marketing campaign to introduce Popeye to a new generation of fans, our goal was to lay down a solid foundation on which to build Popeye's future. The past year has been a very exciting and extremely busy time in Popeye's history. From lighting the Empire State Building green on Popeye's 75th anniversary in January and appearing on his very own Popeye-themed race car at the NASCAR Nextel race in Daytona in July to officially adopting Swee'pea during National Adoption Month in November, 2004 was the year that Popeye muscled his way into the media spotlight and captured attention.

King Features will work to maintain the momentum that we have created for Popeye. In the next month, our marketing department will be conducting a comprehensive market research study on the Popeye franchise. We are looking to identify the target markets, product categories and distribution channels that will drive maximum growth opportunities within Popeye's entertainment and licensing categories.

That said, we also are very eager to hear your opinions of the new Popeye animation. I kindly ask you to complete the Popeye questionnaire that we sent to you earlier and return it to us as soon as possible. Your opinion will be very helpful in how we move forward.

This new year will mark a continuation of our efforts to ensure that Popeye, one of the most beloved classic cartoon characters in history, endures and remains strong for the next 75 years!

Sincerely,

T.R. Shepard III