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Message: Merry Christmas!

Here's hoping that Santa helps extend the trend!

for the third quarter ended September 30, 2010
We are pleased to report a fourth consecutive quarter of improvement in our year-over-year net sales.

Our improved performance is due primarily to the retail success of our major 2010 product initiatives in the toy business.

Toy sales were up 18% for the third quarter and 24% for the nine-month period ended
September 30, 2010.

In the Preschool category, we are benefiting from the strength of innovation in our core Mega Bloks offering and the successful launch of Thomas & Friends in global markets.

In Boys products, Halo has been strong all year and Dragons Universe is generating good sales in the back half of the year, just as Iron Man 2 did in the first six months.

We are seeing good growth in toy sales in North America and a strong rebound in international

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