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LEGO Sells $1 Billion in the US in 2010

LEGO Systems Records Over $1.0BN in 2010 U.S. Consumer Sales; Drives Category and Industry Shares to Record Levels
- Six consecutive years of double-digit percent growth propels world's leading construction toy maker to #3 manufacturer in its key growth market

NEW YORK, February 14, 2011 -- American International Toy Fair - LEGO Systems, Inc., makers of the world's leading construction toys, for the first time in its 50-year history in the American market surpassed $1.0 billion in consumer sales of LEGO® products, reaching its highest share of construction toys and total U.S. toy market ever.

2010 U.S. Year-end Highlights (source: research firm The NPD Group)

  • Surpassed the $1.0 billion dollar mark in consumer sales
  • +25% increase in consumer sales over 2009 marks sixth consecutive year of U.S. consumer sales growth
  • Assumed #3 U.S. toy manufacturer position after gaining nearly one full share point to a record high 4.8% of total U.S. toys
  • Bolstered #1 rank in U.S. construction toys with category share increasing +4.2 points to 82.2% after +90% increase in 4+ construction toy sales
  • LEGO DUPLO® became America's #1 preschool construction toy brand at 38% of the U.S. preschool construction category, a +9 share points increase over previous year resulting from reinstated national retail distribution
  • Successful launch into children's games with LEGO Games securing 12.6% of the category in 6 months on shelf
  • LEGO was the top property in adventure video games last year in dollars and units, selling 5 million games
  • Contributed roughly 50% of total toy industry consumer sales growth dollars

"It's exciting to see how 2010 sales growth across all LEGO segments in the U.S. supports our strategy to deliver a wide range of products for builders of all ages and interests," said Soren Torp Laursen, president, LEGO Systems. "Beyond the products, we take competitive inspiration from the macro market to create a multi-faceted surround sound brand experience that bridges physical and virtual play worlds to engage children's imaginations."

LEGO Games, the world's first collection of constructible board games, easily surpassed the company's goal for launch share to reach #2 ranking in children's games. Six new games will launch this year, as well as a new subgenre of adventure games called HEROICA, featuring four constructible missions that can be played individually or combined to create an ultimate gaming experience.

"LEGO Games is a great example of our innovation model at work," Laursen continued. "When we expand into a new category, we leverage the LEGO play pattern to change the way people engage with that category, rather than replicating what is already available, and the result was very well received by consumers."

2010 sales for DUPLO pushed the brand to the lead position of the preschool subcategory, while strong sales of classic themes and core building sets, like LEGO CITY, ATLANTIS, CREATOR and general boxes and tubs of bricks were complemented by continued momentum in LEGO STAR WARS™, spring launches of LEGO brand Toy Story and Prince of Persia sets and a holiday sell-out of LEGO Harry Potter™ to further the company's leadership of the 4+ subcategory.

LEGO Systems unveils its largest collection of build-and-play toys ever � 170 new products designed to cater to children of all ages and interests � at the American International Toy Fair this week in New York City. From a new homegrown franchise called NINJAGO that spins three play patterns into one storyline, to new lines inspired by Disney's Pirates of Caribbean and Cars 2 feature films, to its burgeoning LEGO DUPLO preschool collection and evergreen favorites like LEGO CITY, the prospects for continued growth are strong.

"We are very optimistic about further U.S. development of the LEGO brand in 2011, given that we start the year from our strongest position ever and with incredible momentum with consumers," Laursen said. "Our competitive focus remains sharp on developing the broad range of products in the 360-degree brand experience that sets LEGO apart."

Select new LEGO products launched in January, with additional novelty launches coming in April, May, July, August and November.

LEGO Systems, Inc. is the North American division of The LEGO Group, a privately-held, family-owned company based in Billund, Denmark, one of the world's leading manufacturers of creatively educational play materials for children. The company is committed to the development of children's creative and imaginative abilities, and its employees are guided by the motto adopted in the 1930s by founder Ole Kirk Christiansen: "Only the best is good enough." Visit the virtual LEGO world at www.LEGO.com.

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