NewKidCo Announces Exclusive Worldwide Distribution Agreement with The Learning Company.

BURLINGTON, Mass.--(BUSINESS WIRE)--March 4, 1999--

Deal Leads off with Shipment of Sesame Street(R)

Branded Videogames for PlayStation(R)

and Game Boy Color (R)

NewKidCo International Inc.(OTC BB:NKCIF; TSE:NKC) announced today a worldwide distribution agreement with The Learning Company, Inc.(NYSE:TLC) under which all of NewKidCo's children's video game software will be sold and distributed exclusively by The Learning Company. The multi-year agreement contemplates required minimum annual purchases by The Learning Company and provides for a $2,000,000(U.S.) advance to NewKidCo by The Learning Company.

"NewKidCo's product line provides us a unique opportunity to achieve significant market share in the burgeoning children's video game market," said Greg Bestick, President of the TLC Learning Division. "With NewKidCo's portfolio of video games based on the leading children's characters, we see a perfect fit."

"As we break ground in the young children's video game market, this agreement provides us access to additional resources and strengthens our ability to market and distribute more effectively to retailers worldwide," says Hank Kaplan, President of NewKidCo LLC. "We also foresee that this arrangement will enhance our appeal as a partner to licensors of the top children's characters."

"This partnership with The Learning Company validates our strategy and further positions NewKidCo to become the leader in young children's video games," said Richard Rabins, CEO of NewKidCo International Inc.

As part of this distribution agreement, NewKidCo today announced that it has begun shipment of Elmo's ABCs(TM) and Elmo's 123s(TM) for Game Boy Color and Elmo's Letter Adventure(TM) for PlayStation. Later this month the two companies plan to ship the second Sesame Street PlayStation title, Elmo's Number Journey(TM), as well as, Hello Kitty's Cube Frenzy(TM), a PlayStation game designed for girls.

About NewKidCo International

NewKidCo International Inc.(OTC BB:NKCIF; TSE:NKC) owns a controlling interest in NewKidCo LLC, a joint venture publishing video games for young children on "next generation" game console systems. NewKidCo's mission is to become the leading provider in the children's video game category with such popular licensed properties as Sesame Street's 'Elmo' from Children's Television Workshop(R), Steven Spielberg presents TINY TOON Adventures(R) from Warner Bros and Hello Kitty(R) from Sanrio. NewKidCo's products are sold nationwide through the retail channel. For more information please visit http://www.newkidco.com.

Alpha Software Corporation based in Burlington, Mass. is a wholly-owned operating company of NewKidCo International Inc. publishing CD-ROM titles in the business utility, entertainment and lifestyle categories.

Press material can be accessed at http://www.newkidco.com

About The Learning Company

The Learning Company, Inc.(NYSE:TLC) is one of the country's leading developers of consumer software for the entire family. The company publishes some of the best-known education, reference, personal productivity and family entertainment brands on the U.S., including Reader Rabbit, Sesame Street(R), Carmen Sandiego, National Geographic, American Greetings, The Print Shop, Family Tree Maker, 3D Home Architect and Myst. The company's products are sold in more than 23,000 retail stores in North America and through multiple distribution channels including school sales, online, direct marketing and OEM. The Learning Company also develops, publishes and distributes products internationally through subsidiaries in France, Germany, the United Kingdom, Holland, Japan and Australia, and with distributors throughout Europe, Latin America and the Pacific Rim. The Company's headquarters are located at One Athenaeum Street, Cambridge, Mass. 02142; telephone [phone]; fax [phone]. The corporate web site is located at www.learningco.com and Customer Service can be reached at 617-761-3000.

PlayStation is a registered trademark of Sony Computer Entertainment America. Game Boy and Game Boy Color are registered trademarks of Nintendo of America, Inc. Sesame Street is a registered trademark of The Children's Television Workshop. Steven Spielberg Presents TINY TOON ADVENTURES is a registered trademark of Warner Bros. Inc. Hello Kitty is a registered trademark of Sanrio Co. Ltd. NewKidCo is a trademark of NewKidCo International Inc. All other trademarks are property of their respectful owners.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including without limitation risks of intellectual property rights and litigation, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company's products, risks of downturns in economic conditions generally, risks associated with competition and competitive pricing pressures, risks associated with foreign sales, risks associates with the sell-through of products in the sales channels, risks associated with customer concentration and other risks detailed in the Company's filing with the Securities and Exchange Commission.