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K'NEX to Distribute BRIO Toys

BRIO Names K'NEX Exclusive Distributor for North America

Osby, Sweden, March 2006 -- Leading toy manufacturers BRIO and K'NEX have signed an agreement making K'NEX the exclusive distributor of all BRIO toys in North America. The long-term contract will go into effect June 1, 2006.

"The U.S. is a very important market for us," said Thomas Bräutigam, BRIO's CEO. "Through K'NEX's already established channels with American retailers, we will gain access to more stores than previously. The agreement is in line with our aim of strengthening BRIO's position in the American market."

K'NEX, based in Hatfield, PA, in the U.S., manufactures the world's top-selling non-brick building toys. Winner of more than 150 awards for its innovative and educational toys, K'NEX was founded in 1992 by Joel Glickman, inventor of K'NEX, who is the company's owner and CEO.

"We feel very positive about this opportunity to strengthen both BRIO and K'NEX," said Michael Araten, K'NEX president and COO. "There are many synergies between our two companies; both are dedicated to creating quality toys that inspire children's imagination and provide high play value. Both are leaders in their fields. This agreement represents the perfect partnership of two strong global brands."

About BRIO
BRIO is a Swedish company that designs and sells toys, prams and children's furniture. The company was founded in 1884 and is today an international group linked with the BRIO, ALGA, SIMO and Carena brands. The BRIO Group also includes Scanditoy, an extensive wholesaler of toys in the Nordic countries. BRIO has over 600 employees, is represented in some 50 countries and its shares have been quoted on the Stockholm Stock Exchange's O List since 1985. www.brio.net.

About K'NEX
Founded in 1992, K'NEX Industries was established to make and sell what has become one of the world's leading integrated construction systems for children. Winner of over 150 international awards and recognitions, K'NEX seeks to build young minds with its exciting product line and critically acclaimed K'NEX Education program. For more information, please visit www.knex.com.

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