Christie Hefner to Step Down at Playboy

CHICAGO,
December 8: Christie Hefner is stepping down as the
chairman and CEO of Playboy Enterprises, but will stay on as CEO until January
31, and will remain as a member of the board until a new CEO is in place.

Jerome Kern
has been appointed to serve as interim non-executive chairman. Kern joined
Playboy's board of directors in 2002. He is a partner in Enki Strategic
Advisors and president of Kern Consulting, which he founded in 2001 after
serving as chairman and CEO of On Command Corporation.

Kern said:
"In the course of her tenure, Christie has overseen Playboy's transition
from a domestic magazine publisher to a global lifestyle and multimedia
company. She directed the company's entry into TV, online and mobile and helped
each of those businesses reach profitability. Under her leadership, the
Licensing Group grew from insignificance to become the company's most
profitable business. Christie's commitment to the company has been
unparalleled, and we are pleased that she has agreed to stay on to help oversee
the transition. We wish her all the best in her future endeavors."

"Playboy
Enterprises Inc. has literally and figuratively been my life and career for
more than 30 years," Hefner commented. "Last month marked my 20th
anniversary as CEO; just as this country is embracing change in the form of new
leadership, I have decided that now is the time to make changes in my own life
as well. I believe the company's businesses are well positioned for future
growth, and I can leave the company confident that the current management team
will be able to capitalize on our achievements and the opportunities in
development.

"I have
had a remarkable career with Playboy. I never expected to go into the family
business, much less to stay here this long, but I have enjoyed the challenges
and opportunities the past decades have presented. It has been a privilege to
be part of the company's dedicated team of employees, and I look forward to helping
the board find a successor who can work effectively with this talented group of
people," Hefner said.

Playboy
founder Hugh Hefner said: "I asked Christie to step up as president when
the company faced serious financial difficulties more than two decades ago. She
has worked tirelessly to expand the company's franchise, and, as a result of
her efforts, the company today has more consumers and fans than at any time in
our history. Of course, as her father, my first priority is Christie's
happiness. While I will miss her leadership here, I believe that she will go on
to achieve even greater personal success."

—By
Kristin Brzoznowski