Urges Stockholders to Protect their Investment by Rejecting Crown`s Consent
Solicitation
LOS ANGELES–(Business Wire)–
EMAK Worldwide, Inc. (OTC: EMAK) today issued an open letter to stockholders
setting the record straight with regard to false and misleading attacks on the
Company`s Board of Directors by Crown EMAK Partners, LLC (“Crown”), the
preferred stockholder of EMAK. EMAK urges common stockholders to protect their
investment in EMAK by rejecting Crown`s consent solicitation. EMAK`s revised
board was seated only two months ago and has set forth an action-oriented
strategy to restore EMAK as a market leader and reinvigorate EMAK`s share price
which has fallen by 90% over the past five years. Crown has been quick to
criticize the EMAK Board`s strategy but has announced no plan of its own to grow
stockholder value and no plan to replace the contribution made by the products
business which accounted for two-thirds of EMAK`s operating income in 2009.

The full text of the letter follows:

April 14, 2010

Dear EMAK Common Stockholders:

As you know, EMAK`s preferred stockholder, Crown EMAK Partners, LLC (“Crown”), is attempting to take control of your Board of Directors and has been aggressively soliciting stockholder consents to amend EMAK`s bylaws to, among other things, reduce the size of EMAK`s board to three directors, two of whom would be designated by Crown.

We believe that, as EMAK`s preferred stockholder, Crown`s interests are very different from yours. While the common stockholders have lost approximately $75 million in value in the past five years, due to Crown`s liquidation preference, the $25 million Crown invested remains intact. If Crown succeeds in taking control of the EMAK Board, common stockholder value is at risk as Crown would have the power to impose transactions that serve Crown`s unique interests as a preferred stockholder – regardless of the
impact to common stockholders.

We urge common stockholders to protect your investment in EMAK by NOT responding to the Crown solicitation and by signing, dating and returning the enclosed WHITE Consent Revocation card. Stockholders who have previously provided consent may revoke that consent by signing, dating and returning the WHITE Consent Revocation Card today.

CROWN CONTINUES TO MAKE FALSE AND MISLEADING STATEMENTS
ABOUT YOUR BOARD

In a desperate attempt to garner your support, Peter Ackerman, who controls Crown, has made false statements and deceptive assertions in order to distort the facts regarding your newly seated Board and its actions. However, as in any business, our credibility is an important asset, and we want to set the record straight. You should know the truth:

Here`s What Crown Said Here`s the Truth
“The fact is that Crown is not a threat. Crown wants to exchange its preferred stock
We have no interest in controlling EMAK or undertaking for new securities with new rights, and
any transaction hurtful to the common [stockholder].” Crown will use its control over EMAK`s
Board to impose a transaction on EMAK and
the common stockholders.

Consider the following testimony in the
Court of Chancery of the State of Delaware
by Jeffrey Deutschman, Manager of Crown
and EMAK director:
— “Crown believes that its consent, by
putting three directors on, if approved by
the shareholders, would allow the exchange
offer process to go forward.”

When asked if Crown needed two out of three
seats on EMAK`s Board in order to
negotiate with EMAK about the valuation
for its exchange transaction, Deutschman
responded:
— “I think it certainly is helpful.”

Deutschman also acknowledged the truth of
the following statement made by the prior
incumbents in November 2009:
— “The Board of Directors perceived a
danger from Crown based upon Crown`s
repeated statements that it would force
EMAK to honor its liquidation preference
despite the effect it would have on the
value of the common shares.”
“…the reduction in the board size [`control`] that On April 6, 2010, ISS, a leading
Crown seeks is temporary and can be eliminated if independent proxy voting advisory firm,
holders of 50% of the stock desire to increase the recommended that EMAK stockholders reject
size of the board.” the consent solicitation from Crown. Let
the report speak for itself(1) Permission
to use quotations from the ISS report was
neither sought nor obtained.:

“[I]f Crown is successful in changing the
bylaws, reducing the board size and
gaining a majority board position, it is
likely to be more difficult for common
shareholders to increase the board going
forward since they would have to undo the
bylaw change. This fact could render
shareholders with limited recourse other
than relying on Crown`s `trust me`
argument…”
“75% of the common stock not part of Don’s [Donald A. "Don`s group" consists of holders of
Kurz, Chairman of the EMAK Board of Directors] group approximately 2.6 million shares of common
has voted with us [Crown] to shrink the size of the stock whose interests are fully aligned
board and take other actions to keep Don from with the common stockholders as a whole.
controlling the company.” An absolute majority of the common stock
voted in December 2009 to elect new
directors. These new directors were seated
on February 9, 2010.

We believe Crown is being disingenuous.
Most of the support Crown is claiming from
the common stockholders comes from present
or former insiders whose interests are not
aligned with all common stockholders, such
as:
— EMAK CEO James Holbrook, who is
responsible for EMAK`s downfall over the
last five years, who is a defendant in
lawsuits in Delaware and California, and
who is subject to being terminated for
cause if Crown does not take control.
— Former EMAK Chairman Stephen Robeck, who
shares responsibility for EMAK`s downfall
over the last five years and is a
defendant in lawsuits in Delaware and
California.
— Former senior executives who have been
retained by Holbrook as consultants and
who can thank Holbrook, Crown and the
prior board for granting them lucrative
bonuses and severance payments as well as
hundreds of thousands of voting shares.

“[Mr. Kurz] offered last September to exchange Crown’s Mr. Kurz made a written proposal to Peter
preferred stock for $5.5 million of EMAK’s cash and a Ackerman in September 2009 that reflected
three-year $20 million EMAK note. All Crown had to do the exact terms requested by Mr. Ackerman
was agree to Don becoming CEO with an annual salary in a phone call with Mr. Kurz. It makes NO
of half a million dollars…Later…we discussed with mention of Mr. Kurz serving as CEO or of
Don a settlement where he and his group would acquire any salary for a new CEO – and there was
the products business for a nominal sum. He wouldn’t NO discussion of these details during the
take it, unless EMAK also agreed to buyback all of phone conversation. The proposal by Mr.
his group’s shares for $2 per share, or more than $5 Kurz was an attempt to avoid litigation
million in total. Since this payment would have gone and instead allow a last ditch effort to
only to Don’s group and not the rest of the save the critical Burger King business
stockholders, this demand for greenmail was not in which was lost a few weeks later.
the best interests of any of the stockholders (other
than Don and his group), and we would not support Mr. Kurz made separate proposals in January
it.” 2010 to split the Company and end all
fights over control. The proposal to
buyback shares for $2.00 per share,
suggested by a person acting as a
mediator, was priced in order to put
capital back into the Company to fund the
business going forward for the benefit of
all stockholders. Mr. Kurz left the
Company as its CEO five years ago when the
stock was trading at $10.50 a share. He
has no interest in cashing out at $2.00.

A separate written proposal by Mr. Kurz
offered the exact deal that Crown says it
now wants – to have the agency services
business in a private company in exchange
for the preferred stock.

The fact is that Mr. Kurz has made three
compelling settlement offers to Crown over
a four month period. All of them would
have avoided millions of dollars spent in
legal fees and offered something
substantial for the common stockholders.

Mr. Ackerman never had the courtesy to
respond to Mr. Kurz`s written proposals.
Instead, he chose to publicly spin them
and pursue his efforts to take control of
EMAK.
“Don has been trying to regain his Let the facts speak for themselves:
job as CEO for many years.” 1999 – Q1, 2005 (Mr. Kurz in charge as CEO/Chairman):
— Revenues averaged over $200 million per year
“Don already had his turn as CEO.” — EBITDA averaged over $14 million per year
— Cash generated from operations over $60 million.
— Stock price averaged over $10 per share and out
performed all benchmark indexes
— Company traded on the NASDAQ Global Market
Q4, 2005 – 2009:
— Revenues now trending well under $100 million annually
— EBITDA averaged $1 million per year
— Stock price severely under-performed all benchmarks
and is currently stuck at $1 per share
— Company is now delisted and deregistered

1 Permission to use quotations from the ISS report was neither sought nor obtained.

Ask yourself, do you want someone who spreads these untruths in perpetual control of your Company? We encourage investors to call Mr. Ackerman and ask the following questions:

* Why does Crown need perpetual control of the Board to renegotiate the terms of its preferred stock, particularly if all it seeks is a fair deal?
* What does Crown have to say about the threats made by Crown that are admitted in Court papers and testimony by the prior Board and Crown designee Jeffrey Deutschman?
* Why does Crown continue to litigate?
* Why won`t Crown sit down and talk with the new Board, rather than continue to fight a public PR battle?

* Why does Crown need perpetual control of the Board to renegotiate the terms of
its preferred stock, particularly if all it seeks is a fair deal?
* What does Crown have to say about the threats made by Crown that are admitted
in Court papers and testimony by the prior Board and Crown designee Jeffrey
Deutschman?
* Why does Crown continue to litigate?
* Why won`t Crown sit down and talk with the new Board, rather than continue to
fight a public PR battle?

THE NEWLY RECONSTITUTED BOARD IS COMMITTED TO
ENHANCING VALUE FOR ALL EMAK STOCKHOLDERS

Your current Board is committed to enhancing the value of EMAK for ALL stockholders. While Crown is attempting to take control of your company without paying a take-over premium and with NO stated strategy to deliver value to common stockholders, your newly elected Board recently laid out a detailed plan for future growth and success. This plan is to complete a rationalization of EMAK`s existing cost structure, implement a multi-faceted, aggressive growth plan and grow a stable and loyal customer base. We
believe this strategy will enable EMAK to deliver EBITDA margins of 15% and annualized organic growth of 8-12%, and will earn EMAK a reputation for being the leading innovator of the marketing services industry by the end of 2011. We are convinced that by implementing this strategy, we will be able to restore EMAK as a market leader and reinvigorate EMAK`s share price.

Achieving this value for stockholders will depend on EMAK`s talented employees and we would like to thank employees for their unwavering loyalty and focus during this challenging time.

ASK YOURSELF: WHO IS BEST SUITED TO SERVE THE INTERESTS OF
COMMON STOCKHOLDERS?

Board members- newly elected- whose interests are fully aligned with common
stockholders and who have a clear plan for building the value of your investment?

– or –

A preferred stockholder group that is attempting to advance its own interests, to the
detriment of common stockholders?

Protect your investment by rejecting Crown`s solicitation. Please act today to stop Crown`s efforts to seize control of EMAK. First, do not provide your consent to Crown. Second, if you have previously provided your consent, you may revoke that consent by signing, dating and returning the enclosed WHITE Consent Revocation Card today. Finally, even if you have not signed Crown`s consent card, you can show your support for EMAK`s new strategy by signing, dating and returning the enclosed WHITE Consent
Revocation Card. Regardless of the number of shares you own, your revocation is important.

Thank you for your support,

EMAK WORLDWIDE, INC.

Your Revocation Is Important, No Matter How Many Or How Few Shares You Own.

If you have questions about how to revoke your consent, or need additional assistance, please contact
the firm assisting us in the solicitation:

INNISFREE M&A INCORPORATED
Stockholders Call Toll-Free: (888) 750-5834
Banks and Brokers May Call Collect: (212) 750-5833

IMPORTANT
We urge you NOT to sign any consent sent to you by Crown EMAK Partners, LLC.

If you have already done so, you have every legal right to revoke your consent by signing, dating and
returning the WHITE consent revocation card TODAY.

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 2010 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.

Joele Frank, Wilkinson Brimmer Katcher
Matthew Sherman / Tim Lynch, 212-355-4449

Copyright Business Wire 2010