Mattel Delivers Revenue, Earnings Gains

EL SEGUNDO, July 17: Mattel’s revenues were up 8 percent to
$957.7 million for the second quarter, delivering a net profit of $37.4
million, versus last year’s net loss of $94 million.

"We are pleased with our second quarter results,” said
Robert A. Eckert, the chairman and CEO of Mattel. “As expected, we benefited
from our summer entertainment toy lines based on the CARS and Superman movies, as well as the newest American Girl Place in Los Angeles. We
also experienced the second consecutive quarter of growth in the U.S. for the
Barbie brand. While I am pleased with Barbie's progress thus far, we are still
in the process of implementing a variety of enhancements for the brand over the
next year."

Mattel Girls and Boys Brands saw sales rise 8 percent to
$609.6 million. Worldwide gross sales for the Barbie brand were down 1 percent,
as were the company’s other girl brands. Worldwide gross sales for the Wheels
category, which includes Hot Wheels, were down 6 percent. Worldwide gross sales
for the Entertainment business, however, which includes games and puzzles, were
up 38 percent for the quarter primarily due to the launch of the CARS and Superman toy lines.

At the Fisher-Price Brands business unit, revenues increased
8 percent to $365.7 million, with strong growth in the core Fisher-Price and
the Power Wheels brands worldwide.