The Middleton Doll Company: Announces Shareholder Approval of Stock Split Transaction

WAUKESHA, Wis.The Middleton Doll Company (the “Company”) announced today that its shareholders approved a 1,000-to-1 reverse stock split of the Company’s common stock followed by a 1-to-1,000 forward stock split, with the result that shareholders who hold fewer than 1,000 shares prior to the stock split transaction will have their partial shares cashed out at a price of $0.50 in cash per share on a pre-split basis. Shareholders who hold 1,000 or more shares prior to the stock split transaction will continue as shareholders of the Company following the stock split transaction.

The stock split transaction is currently scheduled to take effect January 9, 2009. In conjunction with the stock split transaction, the Company intends to deregister its common stock and preferred stock under the Exchange Act, and, therefore, terminate its obligations to file reports with the Securities and Exchange Commission.

Shortly after January 9, shareholders whose partial shares are to be cashed out will receive instructions regarding the method of exchanging old stock certificates for cash. Shareholders need not do anything with their stock certificates until they receive instructions.

Mellon Investor Services LLC, the Company’s transfer agent, will act as the exchange agent for the purpose of implementing the exchange of stock certificates in the stock split transaction.

The Company also announced that shareholders approved amendments to the terms of the Company’s preferred stock eliminating the dividends, extending the maturity date from July 1, 2008 to July 1, 2011, and allowing for partial redemptions upon the sale of assets and complete redemption upon the sale of substantially all of the assets.

About The Middleton Doll Company
The Middleton Doll Company currently operates in two segments, consumer products and financial services. The Company’s consumer products segment is comprised of Lee Middleton Original Dolls, Inc., a designer and marketer of lifelike collectible and play dolls, and License Products, Inc., which does business as FirsTime Manufactory, a designer and marketer of clocks and home décor products that are sold to major national retailers. The Company’s financial services segment is comprised primarily of the remaining assets of the lending and real estate leasing business of its former subsidiary, Bando McGlocklin Small Business Lending Corporation, now owned by Lee Middleton Original Dolls. The Company does not intend to continue in the financial services segment after the remaining financial services segment’s assets are sold.

The Middleton Doll Company news releases
are available on-line 24 hours a day at:
http://www.middletondollcompany.com

Contacts
The Middleton Doll Company
Craig Bald
(262) 347-2904