JAKKS Pacific Inc. Reports Record Second Quarter 1998Results.

MALIBU, Calif.--(BUSINESS WIRE)--July 22, 1998--JAKKS Pacific Inc. (Nasdaq/NM:JAKK) Wednesday announced strong net sal months ended June 30, 1998.

This marks the eighth consecutive quarter of record results for the comnt shares outstanding for the second quarters Net income increased to

$1.4 million, or $0.2periods of 1998 and 1997 was 7,422,000 and 4,53f executive officer of JAKKS Pacific, said: "Jally well. Further, our Road Champs(R), Remco(R) and Child Guidance(R) lines are yielding robust sales and becoming important contributors to our growth. In the die-caement is with the Bass Anglers Sportsman Socief die-cast collectible cars for adult collectorsre with THQ Inc. to develop WWF wrestling video games for Titan Sports. Our strong relationship with Titan was the primary impetus behind that agreement, which shoulerging position within the industry. We remain on track in our strategy to build a portfolio of toy brands w JAKKS Pacific and its affiliates develop, manufactureand market toys and related products for children, ihe Road Champs and Remco brand names, Child Guiard-looking statements. Such statements reflect the current views of the company with respect to future events and are subject to certain risks, uncertainties and assumptions. Although the company believes that the expectations reflscribed herein. -0-

                35,925
    Accounts receivable, net                     11,807,929  8,735,528
    Inventory, net                                2,776,980  1,948,250
    Deferred product development costs, net       1,116,487    807,603
    Advance royal            5,749,648  3,955,856
Less accumulat    626,713
Goodwill, net
486,669     Accounts payable and accrued expenses       $ 9,607,379
$8,594,523
    Current portion of debt           bilities                  10,937,227
11,559,213

Convertible debentures                            6,000,000  6,000,000
Deferred income taxes                                  6,086,896  6,086,896
      Total liabilitrespectively                1          4
    Common stock, $.001 par value, 25,000,000
     shares authorizel paid-in capital                   26,598,354
21,693,061
    Retained earnings                             5,822,462  4,402,636


     grant of options                               115,325    141,937

      Net stockholders' equity    49,335,514 $43,604,815


                JAKK      Six Months Ended
                         sales:
Cost of goods           8,802,058  4,10st of sales          10,013,122
4,855,911  16,6ion of
intangible
assets                    346,859    200,976     694,926      314,519
Selling, general
 and
administrative
expenses                2,913,976  1,895  1,426,339    720,806   2,194,198
  893,800
 Weighted
average shares
 outstanding         interest
costs, net of tax, assuming conversion of convertible debentures as
of Jan. 1, 1998.

or Silverman Heller Associates Lori Parks/Eugene Heller, 310/208-2550