For three consecutive months, the VIDEONOW personal video player was ranked the number one TV-promoted product in the toy industry by a survey of retailers and wholesale distributors conducted by The Toy Book, a leading toy industry publication.

"VIDEONOW COLOR has it all... the brand is a proven success by every measure, and we are confident that the millions of consumers already immersed in the VIDEONOW brand will love everything about VIDEONOW COLOR," said Brian Goldner, Hasbro's President, U.S. Toys Group. "We have put together an all-star lineup of content that kids will love to watch and also collect."

"VIDEONOW is a brand that helped invent an exciting new category for tweens," said Wayne Yodzio, vice president, divisional merchandise manager for Toys "R" Us, Inc. "Customer enthusiasm for VIDEONOW COLOR in Toys "R" Us stores in the New York market indicate this will likely be one of the hit toys of the year. We look forward to the nationwide launch of VIDEONOW COLOR this fall."

Retailing for approximately $75, the VIDEONOW COLOR player combines the high-caliber programming and easy portability of the original VIDEONOW player with an awesome colorful, ergonomic design, a larger, back-lit screen and improved video playback quality. Now kids and tweens can enjoy a bigger, better VIDEONOW viewing experience anytime, anywhere - in COLOR!

The VIDEONOW COLOR personal video player is from Hasbro, Inc.'s Tiger Electronics, the brand that has gained a reputation over the years for identifying and bringing to market the hottest tech toys for kids.

"We are so impressed with this incredible leap in quality and innovation," said Andre Recke, manager for Hilary Duff. "VIDEONOW COLOR has a new backlit screen and higher resolution that should take this exciting product to an entirely new level."

Both Duff's "HILARY AROUND THE WORLD" VIDEONOW COLOR Personal Video Disc (PVD) and Hawk's "TONY HAWK'S SECRET SKATEPARK TOUR" PVD will be featured in the VIDEONOW COLOR advertising campaign. Duff and Hawk will be on-hand at Toys "R" Us Times Square to introduce the VIDEONOW COLOR line � now available in New York and nationally in September - and unveil footage from both the "HILARY AROUND THE WORLD" PVD, which includes footage shot during the filming of Duff's new movie A Cinderella Story, and the "TONY HAWK'S SECRET SKATEPARK TOUR" PVD.

The VIDEONOW proprietary PVDs � to be available for approximately $8.99 each and $16.99 for three-packs � will offer the hottest names in children's entertainment, featuring popular titles from Nickelodeon, including SpongeBob Squarepants, The Fairly OddParents, The Amanda Show (starring Amanda Bynes), All Grown UP!, and The Adventures of Jimmy Neutron, Boy Genius, as well as popular episodes of ABC's America's Funniest Home Videos, NBC's Fear Factor, American Idol and TLC's Trading Spaces, among others.

The VIDEONOW COLOR player is backward compatible � so the installed base of more than 4 million VIDEONOW personal video discs, already in kids hands, will play on the next generation of VIDEONOW hardware technology; each color unit will play both the new color Personal Video Discs as well as the original Personal Video Discs which will play in black and white.

"We believe that VIDEONOW COLOR is the perfect product for today's 'on-the-go' kids - more than 1.2 million VIDEONOW personal video players and more than 4 million VIDEONOW PVDs were sold last year," said Goldner. "Its performance, content and cool design allows tweens and their siblings to enjoy their favorite shows in style � wherever and whenever they want!"

"Toys "R" Us Times Square has become the place to launch the hottest new toys," said Rick Markee, president, Toys "R" Us, U.S. and vice chairman, Toys "R" Us, Inc. "Hasbro has brought us another innovative product, and we look forward to offering it to our guests nationwide."

About VIDEONOW COLOR

VIDEONOW COLOR, a portable, personal video player with a color LCD screen (for ages 6 years and up) is scheduled to be available at leading national retailers in the fall of 2004 for an approximate retail price of $75. The line features additional software titles and a full line of VIDEONOW COLOR accessories including a VIDEONOW carrying case, deluxe backpack carrying case, Personal Video Disc Case, PVD Jewel Case, headphones and Car Adaptor.

The VIDEONOW COLOR personal video player features a self-contained speaker that delivers crystal clear sound. It also has DC power jack and headphone jack (DC adapter and headphones not included). And with just three AA batteries (not included) you can enjoy more than five hours of continuous entertainment.

About Hasbro, Inc.

Hasbro's Tiger Electronics brand has led the industry in delivering highly innovative, technology-driven entertainment and lifestyle products for the whole family. Some of its most well-known product lines include HITCLIPS, FURREAL FRIENDS, FURBY and GIGA PETS.

Hasbro (NYSE: HAS) is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.

About Toys "R" Us

Toys "R" Us, Inc., one of the world's leading retailers of toys, baby products and children's apparel, operates toy stores in the United States; international toy stores, including franchised and licensed stores; Babies "R" Us stores and Geoffrey stores. Toys "R" Us, Inc. currently sells merchandise through 1,472 stores worldwide: 681 toy stores in the United States; 581 international toy stores including licensed and franchise stores; 200 Babies "R" Us stores, and 4 Geoffrey stores. Toys "R" Us, Inc. also sells merchandise through its Internet sites at www.toysrus.com, www.babiesrus.com, www.imaginarium.com and www.sportsrus.com. The company is in the process of closing its 8 remaining freestanding Kids "R" Us stores.