MEGA Brands to Develop Mega Bloks® Thomas & Friends™ Construction Toys

MONTREAL, May 26, 2011 - MEGA Brands Inc. and HIT Entertainment announced today the extension of their global licensing agreement to develop construction sets based on the world's Number One preschool licensed toy property, Thomas & Friends™.

Under the expanded contract, MEGA Brands is granted the global rights to create all-new construction toy sets based on the exciting world of Thomas & Friends™, including new iconic characters and Island of Sodor destinations straight from the popular long-running television series.

With new sets launching this fall for the holiday season, the Mega Bloks Thomas & Friends™ collection allows children to build their very own adventures by entering a world of imagination.

"The Mega Bloks Thomas & Friends building sets have been very successful and we look forward to our continued relationship with HIT Entertainment," said Vic Bertrand, Chief Innovation Officer of MEGA Brands. "We're delighted to bring these beloved characters and adventures to life for children and families to enjoy."

"MEGA Brands has created an innovative and acclaimed line of Thomas & Friends construction toys that has captured the creativity and imaginations of Thomas fans worldwide," said Pam Westman, Executive Vice President, The Americas, HIT Entertainment. "MEGA Brands is a world-class partner, and we are thrilled to continue this successful partnership."

Thomas & Friends™ remains as popular as ever. Thomas & Friends™ is the Number One preschool toy property in the UK, a position it has held for the past 11 years. It remained the Number One preschool toy license in the US for 10 straight years(1) and has been the Number One preschool home entertainment brand in the US since 2009(2). The unrivaled popularity of the global brand continues with Thomas also being the Number One preschool toy license in Germany and Australia, as well as the Number One foreign preschool brand in China, Japan and Korea.

For more information on Mega Bloks® Thomas & Friends™ products, please visit www.megabloks.com.

About MEGA Brands

MEGA Brands is a trusted family of leading global brands in construction toys, games & puzzles, arts & crafts and stationery. They offer engaging creative experiences for children and families through innovative, well-designed, affordable and high-quality products. Visit http://www.megabrands.com for more information. Follow us on Twitter @megabrands.

The MEGA logo, Mega Bloks, Rose Art, MEGA Puzzles, MEGA Games and Board Dudes are trademarks of MEGA Brands Inc. or its affiliates.

About HIT Entertainment

HIT Entertainment is one of the world's leading independent children's entertainment producers and rights-owners. HIT's portfolio includes properties, such as Thomas & Friends™, Barney™, Bob the Builder™, Fireman Sam™, Angelina Ballerina™, Mike the Knight™, Pingu™ and Rainbow Magic™. HIT represents Chapman Entertainment's Fifi and the Flowertots™ and Roary the Racing Car™ in North America, as well as Wallace & Gromit™, Shaun the Sheep™, Timmy Time™ and Aardman Classics from Aardman Animations. HIT also acts as representative for The Wiggles® in the UK. Launched in 1989, HIT's lines of business span television and video production, content distribution, publishing, consumer products licensing and live events and has operations in the UK, US, Canada, Hong Kong and Japan. HIT is a part-owner of US-based preschool channel, Sprout®. For more information, visit www.hitentertainment.com.

1 Source: The NPD Group / Consumer Tracking Service
2 Source: Nielsen