Mattel is the master toy licensee of one of the most anticipated entertainment properties of the year: Harry Potter. The products, including dolls, games, puzzles, activity sets, vehicles, and plush and collectible characters, are being released in two waves. In the first wave, during Spring 2001, Mattel will introduce book-based products from J.K. Rowlings' first book, "Harry Potter and the Sorcerer's Stone." The second wave of products will be based on Warner Bros.' movie and will be available in October 2001.

The company that we've had the longest association with is The Walt Disney Company, dating back to the 1950s. In 1988, we revived our previous association with the entertainment giant and introduced a line of infant and preschool toys based on such world-famous characters as Mickey Mouse, Donald Duck, Goofy, Pluto, and Winnie The Pooh.


The infant and preschool division also has a long-standing and successful partnership with the Sesame Workshop, which has been

extended through the year 2010, to develop a comprehensive line of Sesame Street toys. The partnership has produced such hit toys as Tickle Me Elmo, Sing 'n Snore Ernie, and Rock & Roll Elmo.


And when the number one kid's network and the number one toy company come together, success isn't far behind. For almost ten years, Mattel has been bringing Nickelodeon characters from the silver screen and television screen to life.


One of our most recent partnerships, with Sony Family Pictures Entertainment and the

Kids WB, produced the number one new action figure brand of 2000: Max Steel. With over $90 million in wholesale sales in year one, it was an immediate hit. The Max Steel Show currently airs in 81 countries around the globe.


In 2001, we partnered with leaders in the interactive arena, Vivendi Universal Publishing and THQ. As part of the two separate worldwide, multi-year licensing agreements, Mattel will provide the content from our vast library of power brands, including Barbie^TM, Hot Wheels^TM, and Fisher-Price^TM, and the interactive media companies will provide the technological and distribution expertise.