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                                                                    EXHIBIT 99.2


                        THE L.L. KNICKERBOCKER CO., INC.

            REPORTS THE SETTING OF COURT HEARING FOR APPROVAL OF SALE
           OF SUBSTANTIALLY ALL ASSETS AND CONSIDERATION OF OVERBIDS

Lake Forest, California, August 3, 2001/PR Newswire/ - The L.L. Knickerbocker
Co., Inc. previously reported the filing with the United States Bankruptcy Court
of a motion for order approving overbid procedures and topping fee in connection
with a proposed sale of substantially all of the company's assets (the
"Motion"). The United States Bankruptcy Court held a hearing on the Motion for
July 31, 2001.

At the hearing, the Court approved the Motion as modified in open court. As a
result, there will be a hearing on sale of substantially all of the Company's
assets and to consider overbids on September 4, 2001 at 9:30 A.M.

The overbid procedures include funding a $480,000 deposit by August 29, 2001, an
initial overbid of at least $6,180,000, and subsequent overbids in additional
$300,000 increments. All interested bidders should contact Paul Couchot at
Winthrop Couchot Professional Corporation of Newport Beach, California for
specific information.

The L.L. Knickerbocker Co., Inc. is a multi-brand collectible products, gift,
toy and jewelry company that designs, develops, produces and markets products
over diverse distribution channels. The Company's products are sold through
independent gift and collectible retailers, department stores, electronic
retailers, Internet, and international distributors. The Company is a major
supplier of collectible products and fashion jewelry to the leading electronic
retailer.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: This news release contains forward-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 reflected in such forward-looking statements are
reasonable, should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual future results or events
may vary materially from those described herein.