Under the terms of the agreement, 4Kids Technology, Inc., will invent, create and engineer the Tech Toys with Toys "R" Us being responsible for the final development, manufacture and sale of the products. The Tech Toys include electronic features that enhance play patterns making them particularly appealing to kids and their parents.

"We are delighted to partner with Toys "R" Us to bring these Tech Toys to market exclusively at Toys "R" Us, one of America's leading toy retailers," said Alfred R. Kahn, Chairman of 4Kids Entertainment.

About 4Kids Entertainment, Inc.

4Kids Entertainment, Inc., is a vertically integrated company whose subsidiaries are dedicated to the best in children's entertainment. Headquartered in New York City with international offices in London, 4Kids Entertainment is a global provider of children's entertainment and merchandise licensing. 4Kids, through its wholly owned subsidiaries, provides domestic and international merchandise licensing and product development; television, film, music and home video production and distribution; media buying and planning; and Web site development.

About Toys "R" Us

Toys "R" Us, one of the world's leading retailers of toys, children's apparel and baby products, currently sells merchandise through 1,584 stores worldwide: 689 toy stores in the United States; 526 International toy stores, including franchise stores; 148 Kids "R" Us children's clothing stores; 178 Babies "R" Us stores; and 43 Imaginarium stores, and through Internet sites at http://www.toysrus.com, http://www.babiesrus.com and http://www.imaginarium.com.

This press release contains forward-looking statements. Due to the fact that the Company faces competition from toy companies, motion picture studios and other licensing companies, and the uncertainty of public response to the Company's properties, actual results or outcomes may differ materially from any such forward looking statements.