• Net revenues of $737.8 million compared to $792.2 million a year ago, a decrease of 7%;
• Net earnings up 11% year-over-year to $43.6 million or $0.29 per diluted share;
• Operating profit improves 9% to $79.7 million; Operating profit margin increased to 10.8% versus 9.2% in second quarter 2009;
• Repurchased 6.7 million shares of common stock at a total cost of $271.4 million during the second quarter

PAWTUCKET, R.I. -- July 19, 2010 -- Hasbro, Inc. today reported 2010 second quarter results. The Company reported net earnings of $43.6 million or $0.29 per diluted share, an increase of $4.4 million or 11%, compared to $39.3 million or $0.26 per diluted share in 2009. The Company reported net revenues of $737.8 million compared to $792.2 million a year ago, a decrease of 7%. Foreign exchange impact was a positive $1.6 million to revenues in the quarter.

"We are executing our long-term strategy by re-imagining, re-inventing and re-igniting our global brand portfolio, which in turn is improving profitability in our business," said Brian Goldner, Hasbro President and Chief Executive Officer. "As we stated previously, the second quarter presented challenging revenue comparisons due to the initial movie product ship-ins last year ahead of the TRANSFORMERS and G.I. JOE movies. Having said this, the strength of our brand portfolio and the execution of the team globally enabled us to partially offset this challenging revenue comparison and improve our profitability year-over-year.

"We continue to expect our revenues to be more heavily weighted to the second half of the year as our major initiatives are beginning to launch," said Goldner. "Accordingly, we still believe we should be able to grow revenues and earnings per share for the full year 2010, including the dilution from our television investments and barring a further decline in foreign exchange, consumer spending or global economic conditions."

"Our business continues to deliver healthy profitability. Our balance sheet remains strong and we are committed to disciplined long-term investments," said Deborah Thomas, Hasbro Chief Financial Officer. "We are generating cash, and consistent with our stated strategy, we are using that cash to invest in our future growth and return it to shareholders through our share buyback and dividend programs."

Worldwide net revenues for major product categories grew in two of the four categories. The Games and Puzzles category increased 22% to $262.2 million; the Preschool category grew 32% to $103.5 million; the Girls category was flat at $133.2 million; and, as expected, the Boys product category decreased 34% to $238.8 million.

U.S. and Canada segment net revenues were $444.5 million compared to $490.9 million in 2009. The results reflect growth in the Games & Puzzles, Girls and Preschool categories which was offset by a decline in the Boys category. The U.S. and Canada segment reported an operating profit of $58.7 million compared to $56.3 million in 2009.

International segment net revenues were $261.4 million compared to $276.2 million in 2009. Foreign exchange had a negative $0.8 million impact on the segment's second quarter revenues. The results reflect growth in the Games & Puzzles and Preschool categories offset by declines in the Boys and Girls product categories. The International segment reported an operating profit of $11.6 million compared to $16.5 million in 2009.

Entertainment and Licensing segment net revenues of $30.5 million increased 26% versus $24.2 million in 2009. The results primarily reflect an increase in movie-related revenue. The Entertainment and Licensing segment reported an operating profit of $13.0 million compared to operating profit of $2.9 million in 2009.

The Company repurchased a total of 6.7 million shares of common stock during the second quarter of 2010 at a total cost of $271.4 million and an average price of $40.49 per share. For the first two quarters in 2010, the Company repurchased a total of 9.5 million shares of common stock at a total cost of $369.1 million and an average price of $38.99 per share. Since the inception of its buyback program in June 2005, the Company has repurchased 70.3 million shares at a total cost of $1.9 billion and an average price of $27.13 per share. As of quarter end, $417.5 million remained in the Company's current share repurchase authorization. During the second quarter and first half of 2010, the Company issued 6.4 million and 11.6 million shares of common stock, respectively, in connection with the redemption of its convertible debentures, which were called in April 2010.

About Hasbro

Hasbro, Inc. is a worldwide leader in children's and family leisure time products and services with a rich portfolio of brands and entertainment properties that provides some of the highest quality and most recognizable play and recreational experiences in the world. As a brand-driven, consumer-focused global company, Hasbro brings to market a range of toys, games and licensed products, from traditional to high-tech and digital, under such powerful brand names as TRANSFORMERS, PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM and WIZARDS OF THE COAST. Come see how we inspire play through our brands at www.hasbro.com. (C) 2010 Hasbro, Inc. All Rights Reserved.