Toymax Raises $4.6 Million in Private Placement; Equity financing to fund general corporate purposes and wireless initiatives.

Business Editors/Hi-Tech Writers

PLAINVIEW, N.Y.--(BUSINESS WIRE)--Dec. 13, 2000

Toymax International, Inc. (Nasdaq:TMAX) announced today that pursuant to a private placement, which has commenced, subscriptions and payment of $4.6 million for the purchase of common stock of Toymax and of one of its subsidiaries have been accepted from Toymax founders, David Chu, Steven Lebensfeld and Harvey Goldberg.

Steven Lebensfeld, Toymax CEO, emphasized that the effective price paid for the Toymax stock in the private placement exceeded the current market price of the Company on the Nasdaq National Market.

In the private placement offering, the Company offered units at $300,000 per unit consisting of 100,000 shares of Toymax common stock and 3 million shares of a subsidiary that is developing wireless communications products for children and young adults. The total shares of Toymax stock to be issued at this stage of the private placement are 1,533,333 shares.

The capital infusion will be used for general corporate purposes and to fund the development of the Company's expansion into the wireless digital services market. No commissions or finders' fees are payable in connection with the placement.

"The management team's investment at a significant premium over the current market price demonstrates our confidence in the prospects of our Company and the potential being offered by our future entry into the wireless products market for teens and tweens," said Lebensfeld.

Toymax (www.Toymax.com) is a children's consumer products company that creates, designs and markets innovative and technologically advanced toys and leisure products. Toymax products promote fun and creative play, and are available under several brands: Toymax(R) toys, such as R.A.D.(TM) Robot, Mighty Mo's(TM) vehicles, the award-winning Laser Challenge(TM) brand, and Starter Up(TM) pre-school vehicles; Funnoodle(R) pool and water toys and accessories; Go Fly a Kite(R) kites, windwheels and banners; Candy Planet(TM) candy products; Monogram International gift, novelty and souvenir products; and Yaboom! Entertainment based toys and electronics. Toymax is headquartered in Plainview, N.Y. and its products are available at retailers worldwide.

The statements made in this press release contain certain forward-looking statements. The Company cautions readers that all forward-looking statements are necessarily speculative and accordingly undue reliance should not be placed on any such forward-looking statements, which only speak as of the date made. Actual results may vary materially from those anticipated by the Company for a variety of reasons, including, without limitation, changes in retail sell-through of the Company's products, differences between bookings received from customers and actual orders received, changing consumer demand for its products, Toymax and its subsidiary's dependence on timely development, introduction and customer acceptance of new products, the dependence on a limited number of customers, seasonal and quarterly fluctuations, the dependence on a limited number of product lines, the loss of existing licenses or the inability to renew or extend licenses under favorable terms. The risks highlighted herein should not be assumed to be the only things that could affect the future performance of the Company. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are referred to the documents filed by the Company with the Securities and Exchange Commission, specifically, the most recent reports filed under the Securities Exchange Act of 1934 and the registration statement filed pursuant to the Securities Act of 1933, which identify important risk factors.