1. State of the Toy Industry April 3, 2007 Annual 2006 Data

2. Toy Industry Overview Supercategory Overview Boys & Girls Retailers Licensing Opportunities Movies Wuz^ With Kids? Agenda

3. Overview

4. 2006 Was The Year Of The Rebound For Toys Billions of DollarsBillions of Units +0.3%-1.9% - 4.6%- 4.4% Source: The NPD Group / Consumer Tracking Service

5. Average Retail Price, Unit Sales Distribution Unit Price Mix Has Changed 57% 55% 23% 22% 21% 23% 3.3B 3.0B -9% Unit % Change +2% -10% -12% Source: The NPD Group / Consumer Tracking Service

6. Big 5 European Countries Combined Grow Value Sales by 2% Change vs. 2005 +5% -2%+2%Flat POS

7. Quarterly Trends Show Growth Total Industry % Change – by Quarter in 2006 v 2005 Easter in 2006 was in April (Q2) whereas Easter in 2005 was in March (Q1). Source: The NPD Group / Consumer Tracking Service

8. Toys Increases Time Share Among 5-12 Year Olds 14.9% 9.4% All Other 6.8% 6.5% 6.4% 5.7%4.9% 4.8% 4.7% -0.6 +0.7 +0.8 +0.3 +0.2 -0.6 -0.2 -0.4 Pt Chg Source: The NPD Group / Kids Leisure Time II All Other includes non-elective activities such as eating dinner, personal hygiene, and taking naps.

9. Parents Love Toys! Toys help my child learn. The time we spend playing with toys together brings us closer together. Source: The NPD Group / Parents’ Opinions on Toys Toys keep my child from watching too much TV. Playing with toys allows my family to interact with each other without distractions. I think toys are more interesting and stimulating today than they used to be. I feel that I am a good parent when my child plays with toys. Statements Evaluated – Top 2 Box Agree

10. Innovation, Adaptation, Evolution Drove Sales In 2006 Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change 53% 20% 27% Source: The NPD Group / Consumer Tracking Service

11. Dollar Share (%) Share Point Change 2006 vs. 2005 Annual 2005 Ranking Dollar Volume Percent Change 2006 vs. 2005 Top 10 Manufacturers, 2006 Dollar Share 1 2 3 4 6 5 7 9 8 14 Most Top Manufacturers Grew Source: The NPD Group / Consumer Tracking Service

12. Boys, By Age of Recipient Dollars, 2006 +9% -2% +1% +10% -6% Two Boy’s Segments Showed Significant Increases Source: The NPD Group / Consumer Tracking Service

13. Girls, By Age of Recipient Dollars, 2006 +5% +8% +3% -9% -14% Girls 0-8 Grew Source: The NPD Group / Consumer Tracking Service

14. More Toy Dollars Are Spent Per Child/Year Than Ten Years Ago Per Capita Estimates Of Toy Dollars Across Age Ranges, Annual 2006 Note: Population estimates used are based on Census Bureau Projections of U.S. Population

15. More Kids Source: U.S. Census Bureau Projections of Kids 2005 (,000) 2010 (,000) 5 & Under24,40925,610 6-811,59412,402 9-1216,21515,911 +5% +7% -2%

16. Industry Sales are on the upswing Kids are spending more time playing with toys and their parents like that Innovation is paying off for manufacturers The core consumer is showing significant growth Growth expected to continue as the population of kids goes up over the next few years The Building Blocks Are In Place

17. Supercategory Overview

18. Four Supercategories Drove Sales In 2006 Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change Source: The NPD Group / Consumer Tracking Service

19. Youth Electronics Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

20. Vehicles Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

21. Arts & Crafts Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

22. Infant / Preschool Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

23. Dolls Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

24. Building Sets Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

25. Outdoor & Sports Toys Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

26. Games & Puzzles Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change

27. Plush Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change Source: The NPD Group / Consumer Tracking Service

28. All Other Toys Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change Source: The NPD Group / Consumer Tracking Service

29. Action Figures & Accessories Dollar Sales (MM) Annual 2006 vs. 2005 Dollar % Change Source: The NPD Group / Consumer Tracking Service

30. Demographics

31. Boys, By Age of Recipient Dollars, 2006 +9% -2% +1% +10% -6% Two Boy’s Segments Showed Significant Increases Source: The NPD Group / Consumer Tracking Service

32. Boys, 0-2 Years Old 2005: $2.0B 2006: $2.2B % Change: 8.7% Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Boys, 0-2 Years Old Key Findings & Opportunities: Toys for 0-2 year old boys have the highest average retail price, at $9.32 27% of toys for 0-2 year old boys are purchased by grandparents Purchases made by Hispanics and Asians helped drive the overall growth for this age group Source: The NPD Group / Consumer Tracking Service

33. Boys, 3-5 Years Old 2005: $2.9B 2006: $2.9B % Change: -2.3% Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Key Findings & Opportunities: Toys for this group have the lowest average retail price, at $7.32 3-5 year olds have the highest share of Licensed sales, at 35% Approximately half of 3-5 year old boys ask for specific and/or brand/type of toy Boys, 3-5 Years Old Source: The NPD Group / Consumer Tracking Service

34. Boys, 6-8 Years Old 2005: $2.0B 2006: $2.0B % Change: 1.4% Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Key Findings & Opportunities: While Mass Merchants were the #1 channel for this group, the Online Channel grew the most Purchases made for Christmas/Hanukah and Birthday’s grew, which offset declines for other occasions Boys, 6-8 Years Old Source: The NPD Group / Consumer Tracking Service

35. Boys, 9-11 Years Old 2005: $1.2B 2006: $1.3B % Change: 9.8% Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 +35% -7% -15% +5% +3% +80% +167% Key Findings & Opportunities: Average retail prices climbed to $8.79 in 2006 vs. $7.73 in 2005, a 14% increase Boys 9-11 are more likely to ask for a specific toy more than any other age group Purchases made by Grandparents increased +4 share points Boys, 9-11 Years Old Source: The NPD Group / Consumer Tracking Service

36. Girls, By Age of Recipient Dollars, 2006 +5% +8% +3% -9% -14% Girls 0-8 Grew Source: The NPD Group / Consumer Tracking Service

37. Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Girls, 0-2 Years Old 2005: $2.0B 2006: $2.1B % Change: 4.8% Key Findings & Opportunities: Toys for this group have the highest average retail price, at $9.42 Girls 0-2 years old have the highest share of Licensed toys, at 30% 29% of toys for 0-2 year old girls are purchased by the grandparent Girls, 0-2 Years Old Source: The NPD Group / Consumer Tracking Service

38. Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Girls, 3-5 Years Old 2005: $2.8B 2006: $3.0B % Change: 7.8% Key Findings & Opportunities: Average retail prices climbed to $8.50 in 2006 vs. $7.62 in 2005, a 11% increase Purchases made by Parents increased 4 share points while purchases made by Grandparents decreased -2 share points Purchases made for Birthday’s are up 22% to almost $700MM Girls, 3-5 Years Old Source: The NPD Group / Consumer Tracking Service

39. Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Girls, 6-8 Years Old 2005: $2.1B 2006: $2.1B % Change: 2.8% Key Findings & Opportunities: Girls are becoming more vocal! 2/3 of 6-8 year olds are asking for a toy, most of that comes from girls asking for a specific toy 6-8 year old girls under-indexed for purchases made by African Americans Purchases made for Christmas/Hanukah and Birthday’s contributed to overall growth in this segment Girls, 6-8 Years Old Source: The NPD Group / Consumer Tracking Service

40. Top Dollar Sales Categories (MM) – Annual 2006 vs. 2005 Girls, 9-11 Years Old 2005: $1.2B 2006: $1.1B % Change: -9.0% Key Findings & Opportunities 33% of sales came from items introduced in 2006, vs. 27% from items introduced in 2005 71% of 9-11 year old girls are asking for a specific toy Hallmark was the fastest growing retailer among this age group, and the Toy Store Channel grew the most Girls, 9-11 Years Old Source: The NPD Group / Consumer Tracking Service

41. Retailers

42. The Big Get Bigger…And Target Is Gunning For #2 Retailer Dollar Share Source: The NPD Group / Consumer Tracking Service

43. Per Store Sales Stronger For Toys ‘R Us For 2 Consecutive Years Retailer Dollar Sales Per Store (,000) – Annual 2006 Wal-MartToys ‘R UsTarget +8% +1% # Stores3,0663,1893,3316816795861,3081,3971,448 Source: The NPD Group / Consumer Tracking Service

44. It’s A Seasonal Game Retailer Dollar Share – Annual 2006 Source: The NPD Group / Consumer Tracking Service +2 % Chg.

45. Both Toys ‘R Us And Target Had Double-digit Growth Per Store In Q4 Retailer Dollar Sales Per Store (,000) – 4 th Quarter Wal-MartToys ‘R UsTarget +10% Source: The NPD Group / Consumer Tracking Service

46. There Are Regional Ups & Downs for the Big 3 Retailers Retailer Dollar % Change – Annual 2006 vs. 2005 Wal-Mart+1% Toys R Us -16% Target+10% Wal-Mart -1% Toys R Us 0% Target +6% Wal-Mart +2% Toys R Us -2% Target +29% In Northeast MSAs with population >2.5M TRU +9% Wal-Mart -3% Toys R Us -9% Target +25% WEST CENTRAL NORTHEAST SOUTH Source: The NPD Group / Consumer Tracking Service

47. The Big 3 Are Evenly Matched In The Largest Metro Areas Retailer Dollar Share by MSA (Market Size Area) – Annual 2006 55%45% Source: The NPD Group / Consumer Tracking Service Population Size

48. Price Strategy Matters Average Consumer Reported Price by Retailer – Annual 2006 Wal-MartToys ‘R UsTarget Source: The NPD Group / Consumer Tracking Service

49. Price Matters Unit Distribution of Sales by Price Point – Annual 2006 18% 25% 52% Source: The NPD Group / Consumer Tracking Service

50. Target  Focused Grew sales on a per store basis and expanded the # of stores to 1,443 in 2006 vs. 1,350 in 2005 Grew in all regions Strong in 4 th quarter Strong development in hot new properties (e.g. 29% of Go Diego Go sales in 2006)

51. Toys ‘R Us  Refocused Per store sales grew +8% in 2006 (4 th quarter +10%) Held price assortment strategy of toys Grew with blockbuster properties (Cars The Movie, Sesame Street, Littlest Pet Shop) Grew with the right new properties (Kid Tough, Designer World, Go Diego Go) Grew with originality (Shake N Go Racers, LEGO City, Six Flags)

52. Wal-Mart  Opportunities Focus on per store sales Build 4 th quarter appeal Focus on shifting trends in the toy industry (Youth Electronics flat 2006 vs. 2005) Price distribution strategy for toys doesn’t match with growth areas (largest share of toys in $0-$5 range, but this range has largest unit declines in industry) Missed hot items with higher price points (Designer World, Roboreptile)

53. Licensing Opportunities

54. Licensed Toys Were Flat Non-Licensed Toys 73% Licensed Toys 27% Annual 2006 Non-Licensed Toys 73% Licensed Toys 27% Annual 2005 Dollar Share of Licensed vs. Non-Licensed Toys Annual 2004 Non-Licensed Toys 75% Licensed Toys 25% Source: The NPD Group / Consumer Tracking Service

55. Annual 2005 Ranking Dollar Volume (MM) Top 10 Properties - Ranked on Annual 2006 Dollar Sales A Perspective On Top Properties Annual 2006 vs. 2005 % Change Source: The NPD Group / Consumer Tracking Service

56. Dora The Explorer Skips Past Star Wars In Race To The Wire Annual 2005 Ranking Annual 2006 vs. 2005 % Change Dollar Volume (MM) Licensed Sales Only, Brand Data Excluded Top 10 Licenses - Ranked on Annual 2006 Dollar Sales Source: The NPD Group / Consumer Tracking Service

57. Annual ‘06 Dollar Volume (MM) Cars Easily Drove Into #1 Growth License Spot Annual ‘06 vs. ’05 % Change Absolute $ Growth Change Annual ‘06 vs. Annual ‘05 (MM) Licensed Sales Only, Brand Data Excluded Top 10 Absolute Dollar Growth Licenses Source: The NPD Group / Consumer Tracking Service

58. 7 Of The Top 10 New Licenses Were Based On TV Shows, Not Movies New licenses are those with <$1MM in prior year. Top 10 New Licenses - Ranked on Annual 2006 Dollar Sales (MM) In it’s first year (2002), Dora the Explorer had $68MM in sales Source: The NPD Group / Consumer Tracking Service

59. Top 10 Licenses By Descending Dollars for Ages 0-2, 1999-2006 Only Sesame Street, Winnie The Pooh, & Thomas and Friends Have Licensing Staying Power For Kids Ages 0-2 19992000200120022003200420052006 1SESAME STREET 2WINNIE THE POOH WINNIE THE POOH & FRIENDS DORA THE EXPLORER 3TELETUBBIESBLUES CLUES BOB THE BUILDER DORA THE EXPLORER WINNIE THE POOH & FRIENDS THOMAS AND FRIENDS 4 DISNEY STD.CHARACTERS BARBIEMICKEY & FRIENDSCARE BEARS THOMAS AND FRIENDS WINNIE THE POOH & FRIENDS 5BLUES CLUESBARBIEJOHN DEEREBLUES CLUES THOMAS AND FRIENDS DISNEY PRINCESSCARS THE MOVIE 6BARNEYJEEPTONKA THOMAS AND FRIENDSMICKEY & FRIENDSDISNEY PRINCESSCARE BEARSDISNEY PRINCESS 7JEEP THOMAS AND FRIENDS DISNEY STD.CHARACTERSTONKADISNEY PRINCESSWIGGLESCABBAGE PATCH 8BARBIETONKA THOMAS AND FRIENDSBARNEYBOB THE BUILDERSPIDERMANJOHN DEERE 9TOY STORYBARNEYBOB THE BUILDER SPONGEBOB SQUAREPANTSTONKAMICKEY & FRIENDS SPONGEBOB SQUAREPANTS 10 THOMAS AND FRIENDSTOY STORYJEEPMAGNA DOODLE SPONGEBOB SQUAREPANTS SPIDERMANBACKYARDIGANS Source: The NPD Group / Consumer Tracking Service

60. Top 10 Licenses By Descending Dollars for Ages 3-5, 1999-2006 Only Barbie and Power Rangers Have Consistently Made The Top 10 Licenses List Since 1999 For Kids Ages 3-5 19992000200120022003200420052006 1BARBIE SPIDERMAN DORA THE EXPLORER 2POKEMON THOMAS AND FRIENDSSPIDERMANDISNEY PRINCESS THOMAS AND FRIENDS 3STAR WARSTOY STORYPOWER RANGERS THOMAS AND FRIENDSSPIDERMAN DORA THE EXPLORERSTAR WARSCARS THE MOVIE 4WINNIE THE POOHBLUES CLUESTONKAPOWER RANGERS BARBIE THOMAS AND FRIENDSDISNEY PRINCESS 5TOY STORYWINNIE THE POOHBOB THE BUILDER THOMAS AND FRIENDSPOWER RANGERSSPIDERMANBARBIE 6POWER RANGERS HOT WHEELSJEEPCARE BEARS BATMANSPIDERMAN 7BLUES CLUESHOT WHEELSMONSTERS, INC.TOY STORY DORA THE EXPLORER THOMAS AND FRIENDSBARBIEPOWER RANGERS 8KAWASAKITONKATOY STORYSTAR WARSHULK SPONGEBOB SQUAREPANTSPOWER RANGERSSTAR WARS 9SESAME STREETCHEVROLETSCOOBY DOODISNEY PRINCESSJEEP NINJA TURTLES(TMNT) SPONGEBOB SQUAREPANTS 10HOT WHEELSSESAME STREETWINNIE THE POOHTONKATRANSFORMERSTOY STORYCARE BEARSSESAME STREET Source: The NPD Group / Consumer Tracking Service

61. Top 10 Licenses By Descending Dollars for Ages 6-8, 1999-2006 For Kids Ages 6-8, Barbie and Power Rangers Consistently Make The Top 10 Licenses List 19992000200120022003200420052006 1POKEMON BARBIE YU-GI-OH STAR WARS 2 BARBIEPOKEMONSTAR WARSBARBIESPIDERMANYU-GI-OHCARS THE MOVIE 3BARBIESTAR WARSHARRY POTTERSPIDERMANBEYBLADEBARBIE DISNEY PRINCESS 4POWER RANGERS YU-GI-OHSPIDERMANPOWER RANGERSDISNEY PRINCESSBARBIE 5WWFDIGIMONSTAR WARSHARRY POTTERHULKTRANSFORMERSBATMANYU-GI-OH 6NASCARCHEVROLETDIGIMONPOKEMONTRANSFORMERSNINJA TURTLES(TMNT)SPIDERMAN 7WCWPOWERPUFF GIRLS POWER RANGERS BEYBLADECABBAGE PATCHPOWER RANGERS 8 BEAST WARS/ TRANSFORMERSBRITNEY SPEARSWWFZOIDSPOKEMONCARE BEARSPOWER RANGERSDORA THE EXPLORER 9WINNIE THE POOHWWFNASCARTRANSFORMERSHARRY POTTER SPONGEBOB SQUAREPANTSDISNEY ALL OTHERBATMAN 10TOY STORYHOT WHEELSDRAGON BALL ZRAPUNZELHUMMERPOKEMONNINJA TURTLES(TMNT) SPONGEBOB SQUAREPANTS Source: The NPD Group / Consumer Tracking Service

62. Importance Of Licensed Toys Has Remained Stable With A Few Notable Changes 2006 Dollar Share of Licensed vs. Non-Licensed Toys By Supercategory Share Chg. from 2005 for Licensed 0+1+2+1+6+1-40+1-4+2 Source: The NPD Group / Consumer Tracking Service

63. Action Figures Is The Largest Licensed Category By A Wide Margin 6% Top 10 Licensed Categories, % Dollar Share with Dollar Percent Change from 2005-2006 7%25%10%21%22%3%37%25%14% Source: The NPD Group / Consumer Tracking Service

64. Kids 0-2 Is Fastest Growing Segment Gender Dollar Share of Licensed Toys by Gender and Age of Recipient, Share Change Annual 2005 v. Annual 2006 +1 pt.-1 pt. Age of Recipient +1 pt. -1 pt. +3 pts. -2 Source: The NPD Group / Consumer Tracking Service

65. Although Licensed Toys For Boys Was Up Only 1%, Licensed Toys For Ages 2 And 3 Saw A Big Jump Age Distribution of Licensed Toys for Boys, Annual 2005 and 2006, Dollar Volume (MM)* Licensed Sales Only, Brand Data Excluded Declines in ages 5-6 mostly due to Star Wars, Yu-Gi-Oh, Batman, Spider-Man and Ninja Turtles. (Video games a factor?) Declines in ages 11-12 mostly due to Star Wars and New Bright. Declines in age 8 mostly due to Yu-Gi-Oh and Star Wars. Gains in ages 2-3 mostly due to Cars, Go Diego Go, Thomas & Friends and Bob the Builder. Gains in age 9-10 mostly due to Transformers and WWE Source: The NPD Group / Consumer Tracking Service

66. Largest Shift In Girls Licensing Was Declines In Girls Ages 2-3 Age Distribution of Licensed Toys for Boys vs. Girls, Annual 2005 and 2006, Dollar Volume (MM)* Licensed Sales Only, Brand Data Excluded Declines in ages 2-3 mostly due to Care Bears, Disney Princess, Cinderella and Mickey & Friends. Gains in ages 0-1 mostly due to Disney Princess and Sesame Street. Gains in age 4 mostly due to Barbie and Little Mermaid. Declines in ages 5-6 mostly due to Care Bears, Strawberry Shortcake and Cabbage Patch. Source: The NPD Group / Consumer Tracking Service

67. Boys Beat Out Girls In All Groups Except Age 2, Still Revealing A Lot Of Opportunity For Girl’s Licensing Age Distribution of Licensed Toys for Boys vs. Girls, Annual 2006, Dollar Volume (MM) Licensed Sales Only, Brand Data Excluded Age 3 Age 2 Gap is $748MM Gap is $23MM Source: The NPD Group / Consumer Tracking Service

68. Half Of The Top 10 Manufacturers Of Licensed Toys Have 50% Or More Of Their Portfolio Tied To Licenses % of Total Sales Licensed Licensed Dollar Volume (MM) Top 10 Manufacturers for Licensed Toys, Ranked on Annual 2006 Licensed Dollar Sales Source: The NPD Group / Consumer Tracking Service

69. Half Of The Top 10 Licensors Showed Growth % Chg. ’06 vs. ‘05 Dollar Volume (MM) Top 10 Licensors, Ranked on Annual 2006 Dollar Sales Source: The NPD Group / Consumer Tracking Service

70. Licensed Sales Only, Brand Data Excluded Top 10 Licenses, Gender of Recipient, Dollar Share Annual 2006 With Few Exceptions, Top Licenses Are Gender Specific Source: The NPD Group / Consumer Tracking Service

71. Star Wars Impact On Most Top Boys Properties Was Forceful Post Star Wars Ranking (Apr’05-Mar’06) Apr’05-Mar’06 vs. Apr’04-Mar’05 % Change Dollar Volume Apr’04-Mar’05 (MM) Top 10 Properties for Boys Ages 3-8, Apr’04-Mar’05, Ranked on Dollar Sales Star Wars movie premiered 5/19/05 Source: The NPD Group / Consumer Tracking Service

72. Cars Rolled Over The Competition; Thomas Chugged Along and Crayola Survived Post Cars the Movie Ranking (5/06-1/07) May’06-Jan’07 vs. YAG % Change Dollar Volume (MM) Top 10 Properties for Boys Ages 3-5, May’05-Jan’06, Ranked on Dollar Sales Source: The NPD Group / Consumer Tracking Service

73. Leveraging The Opportunities In Licensing Girls, Girls, Girls Crowded boys market in 2007, but what about after that? More new kids in the U.S. Investigate thoroughly what’s coming in and going out in years ahead and seize opportunities Consider entering areas that are not penetrated with licenses where it makes sense Understand which manufacturers are best by age, gender and product category In most cases, pick a gender In most cases, develop toys across broad age range but target those groups with the appropriate toys

74. Movies

75. February 16 – Ghost Rider – Hasbro

76. March 30 – Ninja Turtles – Playmates

77. May 4 – Spider-Man 3 – Hasbro

78. May 18 – Shrek 3 – MGA Entertainment

79. May 25 – Pirates of the Caribbean – Zizzle

80. June 15 – Fantastic Four – Hasbro

81. June 29 – Ratatouille – Fisher-Price

82. July 4 – Transformers – Hasbro

83. July 13 – Harry Potter – Mattel

84. July 27 – The Simpsons – McFarlane

85. August 10 – Bratz: The Movie – MGA Entertainment

86. So, Wuz ^ With Kids?

87. Wuz ^ With Kids? Source: The NPD Group / Kids Leisure Time II Play With Toys and/or Board Games

88. Kids Of All Ages Are Watching TV/Movies Source: The NPD Group / Kids Leisure Time II Watch TV or Movies 12 hours/ week 14 hours/ week

89. Top 2006 VHS/DVD Sales With Kids <12 As Primary Viewers Tops In Movies Source: The NPD Group, Inc/ VideoWatch

90. Listening to Music, Penetration Source: The NPD Group / Kids Leisure Time II 8 hours/ week 10 hours/ week

91. Top Music Artists (CD) Source: Kids Market Monitor – 2006 Kids Ages 12 & Under

92. Let’s Go Shopping! Source: The NPD Group / Kids Leisure Time II Shopping/ Errands 4.7 hours/ week 5 ½ hours/ week

93. Where Are Kids Age 12 & Under Getting Their Stuff? Toys Video Games Apparel Footwear Movie Videos Music CD’s Source: Kids Market Monitor – 2006 Kids Ages 12 & Under

94. Computer Usage, Penetration (Not Homework Related) Source: The NPD Group / Kids Leisure Time II

95. Overall Kids’ Favorite Websites (Ages 2-14) Source: The NPD Group / Kids & Digital Content, Verbatim Responses, Ranking Only

96. Video Game Playing, Penetration Source: The NPD Group / Kids Leisure Time II

97. The Video Games Industry Breaks New Records Dollar Sales, Billions $11.0B $11.5B $13.5B PC Games Software VG Accessories VG Hardware VG Software +43% +6% +19% +1% Retail games Industry sales grew 18% overall (+$2B) Source: The NPD Group / Video Games

98. PS2 & Nintendo DS Rule for the 12 & Under Crowd 26.7 Source: The NPD Group / Video Games Platform Unit Share, Kids 12 & Under, 2006 66% 67%

99. The Total Market Expands but Kids’ Share Decreases 2005: $10.5B 36% Dollar Share, Total Video Games Industry Source: The NPD Group / Video Games 9% 2006: $12.5B 34% 8%

100. Source: The NPD Group, Inc./Consumer Information Top Games For Kids 12 & Under In 2006

101. Wuz ^ With Kids? Source: The NPD Group / Kids Leisure Time II

102. The Building Blocks Are In Place Industry on the upswing Innovation has paid off Core consumer is growing Birthrates going up Wal-Mart, Toys R Us, Target Properties stable Big movie year

103. Thank You