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                                  EXHIBIT 99.1

                         [Letterhead of Brody / Berman]


FOR:   Marvel Entertainment Group, Inc.
FROM:  Brody Berman Associates, Inc.
       Contact:  Bruce Berman or Kathryn A. Davis (212) 490-0090

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                 MARVEL ENTERTAINMENT GROUP, INC. (OTC: MRVGQ)

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                       TOY BIZ & MARVEL TRUSTEE ANNOUNCE

                              SETTLEMENT AGREEMENT


NEW YORK, NY, May 12, 1998 ... Toy Biz, Inc. (NYSE: TBZ) and Marvel
Entertainment Group, Inc. (OTC: MRVGQ) announced today that an agreement,
subject to court approval, has been reached among Toy Biz, John J. Gibbons,
Chapter 11 Trustee of Marvel, representatives of Marvel's Senior Secured
Lenders and certain other parties to settle litigation commenced by Marvel
against Toy Biz, Marvel's Senior Secured Lenders and those other parties as
well as litigation commenced by Toy Biz against Marvel. On March 30, 1998, the
United States District Court for the District of Delaware, which has been
administering the Marvel Chapter 11 cases entered a judgment declaring that the
supervoting rights associated with the class B common stock of Toy Biz owned by
Marvel, which enabled Marvel to control the Toy Biz board, terminated on June
20, 1997 when Carl C. Icahn took control of Marvel. This judgment has been
appealed by Marvel's Trustee and others to the United States Court of Appeals
for the Third Circuit. On April 13, 1998, the Court of Appeals stayed, pending
the outcome of the appeal, the previously scheduled confirmation hearing on the
plan of reorganization that had been proposed by Toy Biz and Marvel's Senior
Secured Lenders. That Plan of Reorganization provides for the combination of
Toy Biz and Marvel.

            If the settlement agreement is approved by the District Court which
is overseeing Marvel's bankruptcy, the Trustee has agreed to seek to have the
stay of confirmation hearing vacated, to defer consummation of the appeal and
to withdraw the appeal upon consummation of the Plan of Reorganization. Under
the terms of the proposed settlement agreement, the Trustee, the Senior Secured
Lenders of Marvel, Toy Biz and others will exchange releases, including
releases from the lawsuit commenced by Marvel. That lawsuit was commenced by
Marvel when it was controlled by the Icahn interests against the Senior Secured
Lenders, Toy Biz and others.

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                                                              Page Two - Marvel


Among the parties against whom Marvel brought its lawsuit are Ronald O.
Perelman and certain of his affiliates and associates, who are not being
released. The proposed settlement also provides for the amendment of the
proposed Plan of Reorganization so that Marvel equityholders and entities
entitled to securities litigation claims will receive three series of warrants
upon consummation of the amended Plan of Reorganization entitling them to
purchase common and convertible/exchangeable preferred stock to be issued by
the combined company. The first series of four million warrants will have a
term of six months and will allow the recipients to purchase common stock, in
the combined company at a price of $12.00 per share (subject to increase based
on the issuance date of the warrants). The second series of three million
warrants will have a term of six months and will allow the recipients to
purchase convertible/exchangeable preferred stock in the combined company at a
price of $10.65 per share (also subject to increase based on the issuance date
of the warrants). The final series of five million warrants will have a term of
four years and will allow the recipients to purchase common stock in the new
company at a price of $18.50 per share. Finally, the equityholders and class
securities litigation claimants will be entitled to receive distributions from
any recovery on certain future litigation.

         In addition to the approval of the District Court which is overseeing
Marvel's bankruptcy, the agreement is subject to the approval of the Senior
Secured Lenders that have agreed to support the Plan of Reorganization. Toy Biz
expects to receive the Senior Secured Lenders' approval shortly and will be
seeking court approval of the settlement together with Marvel's Chapter 11
Trustee expeditiously. The agreement is subject to confirmation of the amended
Plan of Reorganization by June 30, 1998, which will require the Court of
Appeals to lift its stay, and consummation of the amended Plan of
Reorganization by August 15, 1998.

         Joseph Ahearn, President and CEO of Toy Biz, commented that: "We are
extremely pleased with the settlement reached with Marvel's Chapter 11 Trustee.
The settlement represents another significant step in resolving the issues that
have delayed the resolution of our Plan of Reorganization." John J. Gibbons,
Chapter 11 Trustee of Marvel commented that: "I am pleased that we have been
able to achieve a settlement with Toy Biz that will provide an opportunity to
resolve litigation associated with Marvel's bankruptcy and end the eighteen
month process associated with confirming a Plan of Reorganization for Marvel.
This settlement represents a significant step forward and I believe all
involved have worked diligently to get to this settlement."

         Common shares of Marvel Entertainment Group, Inc. were suspended from
trading on the New York Stock Exchange on April 15 pending delisting as a
result of the Company's inability to meet NYSE's continuing listing
requirements. Marvel's common shares currently trade on NASDAQ's "Bulletin
Board" under the symbol MRVGQ. However, there is no assurance that the
Company's shares will continue to trade on the "Bulletin Board" or on another
exchange.

         Marvel Entertainment Group, Inc. is a leading youth entertainment
company. Operations include publishing of comic books, trading cards and
activity stickers, and licensing of its characters for consumer products, media
and advertising promotions.

                     - FORWARD LOOKING STATEMENT FOLLOWS -

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---------------------------
FORWARD-LOOKING STATEMENT

         Statements in this news release and in the annual report on Form 10-K
for the year ended December 31, 1997, Form 10Qs and 8Ks, and other filings such
as "intend", "estimated", "believe", "expect", "anticipate" and similar
expressions which are not historical are forward-looking statements that
involve risks and uncertainties. Such statements include, without limitation,
the Company's expectation as to future financial performance. In addition to
factors that may be described in the Company's Securities and Exchange
Commission filings, including this filing, the following factors, among others,
could cause the Company's financial performance to differ materially from that
expressed in any forward-looking statements made by, or on behalf of, the
Company: (i) the ability of the Debtor Companies to successfully reorganize in
bankruptcy and the timing and outcome of such bankruptcy proceedings and the
resolution of the Company's dispute with Toy Biz; (ii) the ability of the
Company to obtain an additional or new debtor loan or other financing; (iii)
continued weakness in the comic book market which cannot be overcome by the
Company's new editorial, production and distribution initiatives in comic
publishing; (iv) continued general weakness in the trading card and children's
activity sticker market; (v) the effectiveness of the Company's changes to its
trading card and publishing distribution; (vi) a decrease in the level of media
exposure or popularity of the Company's characters resulting in declining
revenues based on such characters; (vii) the lack, of continued commercial
success of properties owned by major licensors which have granted the Company
licensee for its sports and entertainment trading card and sticker businesses;
(viii) unanticipated costs or delays in completing projects associated with the
Company's new ventures including media, interactive software and on-line
services and theme restaurants; or (ix) the ability of the Company to make its
information systems year 2000 compliant.