JAKKS started as a traditional toy company, and now with our Play Along acquisition and beloved favorites such as Cabbage Patch Kids® and Care Bears® now part of our toy offerings, our portfolio is packed with winners. The successful re-introduction of the world-famous Cabbage Patch Kids late in 2004 immediately positioned JAKKS as one of the industry leaders in the large doll category. Nominated by the Toy Industry Association and our industry peers as Girls Toy of the Year and Property of the Year, Play Along’s Cabbage Patch Kids line prominently increased retail presence for JAKKS in the toy aisles for 2004.

Care Bears and Teletubbies®, which Play Along has shipped for more than three consecutive years each, helped establish JAKKS Pacific as a major player in the preschool plush toy category. Care Bears was the number one licensed plush brand at retail in 2004 and we expect this popularity to continue. JAKKS has also extended the Care Bears license into the Flying Colors brand for art activities, and even kites.

New product lines for 2005 include Sky Dancers® action dolls and Doodle Bear® Plush, both of which were big hits in the ’90s, and which we look forward to introducing to a new generation of young kids today.

JAKKS continues to offer toys that boys from 4 to 84 years old love to play with. In 2004, we introduced the WWE™ Classic Superstars assortment, which in 2004 included great wrestlers from the past such as Andre the Giant and Jimmy “Superfly” Snuka. WWE action figure sales increased in 2004, and we believe this growth was largely due to JAKKS recognizing that the Classic Superstars line would be a favorite with both the kid and adult collector market.

As we look to ways to capitalize on popular and growing trends, we pinpointed vehicle customization and created a line of performance and collectible wheels called Fly Wheels™, which launched late in 2004, and is off to a phenomenal start. The product has presence in all the major accounts domestically and many countries throughout the world, and sell-through of the core line is strong. JAKKS will add new playsets, wheels assortments and accessories in 2005—all 100% licensed with the top names in the industry.