"Big Hugs" for Hasbro's Line of Teletubbies Products; 1998 Hits Included the No. 1 Plush Toy and No. 1 Licensed Children's Puzzle.

NEW YORK--(BUSINESS WIRE)--Feb. 8, 1999--Teletubbies(tm) won the hearts of children, retailers and the media in 1998 by quickly becoming one of the hottest preschool licenses ever and scoring big hits for Hasbro, Inc. (ASE:HAS), including the No. 1 plush toy -- Talking Teletubbies -- and the No. 1 licensed children's puzzle. Teletubbies was created and developed by the multi award-winning team of Anne Wood and Andrew Davenport of Ragdoll Productions (UK) Ltd. It is marketed in the Americas by The itsy bitsy Entertainment Company.

During its first year in the U.S. and Canada, the Teletubbies brand experienced tremendous success for a new license, making it one of the most successful preschool launches ever. Many of Hasbro's Teletubbies products made retailers' "hot" lists in 1998, and Talking Teletubbies won "best toy" from Brandweek, The Toy Book, "CBS This Morning," Parents Magazine and Sesame Street Parents Magazine, among others.

"We are truly thrilled at the phenomenal success that Teletubbies brought to Hasbro in 1998. Teletubbies were very strong at retail from the first day of our launch last May, and they remain strong sellers," said E. David Wilson, President, Sales and Marketing for the Americas. "We are confident that our new line will delight children through the creativity, imagination and fun that children and families expect from the Teletubbies."

"We are proud of all the success Hasbro has received with their range of Teletubby toys," said Kenn Viselman, President, CEO and Chairman of the Board for The itsy bitsy Entertainment Company. Viselman continued with, "These new range of toys are certain to keep the next wave of preschoolers in rapture."

Hasbro unveils its exciting line of new toys and games at the 96th American International Toy Fair beginning February 8th in New York City. Highlights of the line include Teletubbies(tm) Tummy Surprise, soft, cuddly Teletubbies that magically feature illuminated pictures in their tummies, giggle, kick their feet and say fun phrases when their hands are squeezed; and the Teletubbies(tm) Tubby Go Round(tm) Walker, a sturdy, stable walker that toddlers will love to push because Tinky Winky(tm), Dipsy(tm) and Laa-Laa(tm) "chase" each other while Po(tm) plays peek-a-boo from the Tubbytronic Superdome.

Ragdoll Productions was founded by acclaimed children's television program maker Anne Wood in 1984 with the motto: "Ragdoll Works For Children". Worldwide, Ragdoll-produced series for pre-school aged children are shown in more than 60 countries, and in the UK are screened by the British Broadcasting Corporation and the Independent Television Network. Titles include Teletubbies, Rosie and Jim, Tots TV, Brum and Open A Door, and recent awards include the BAFTA (British Emmy) Award for Best Children's Series, Grand Prize at the 24th Japan Prize International Contest in Tokyo for an episode of Teletubbies, and the award to Anne Wood of Fellowship of the Royal Television Society. The company is based in Stratford upon Avon, England.

The itsy bitsy Entertainment Company was launched to offer creators of unique properties a strong, dedicated partnership for production, distribution, licensing and marketing. Founded in 1995 by Kenn Viselman, The itsy bitsy Entertainment Company is known for inspiring "Safehaven Entertainment?" - programming and products that maintain the highest levels of consideration for positive parenting while enhancing children's lives. The company's philosophy is "To be free to learn, Children must be free to dream!" The itsy bitsy Entertainment Company is a member company of North Coast Entertainment, a subsidiary of Handleman Company (NYSE:"HDL").

Hasbro is a worldwide leader in the design, manufacture and marketing of toys, games, interactive software, puzzles and infant products. Both internationally and in the U.S., its Playskool(R), Kenner(R), Tonka(R), OddzOn(R), Super Soaker(R), Milton Bradley(R), Parker Brothers(R), Tiger(tm), Hasbro Interactive(tm) and Galoob(R) products, provide children and families with the highest quality and most recognizable toys and games in the world.