With the conclusion of this audit, MIMCO has determined that the MX3 facility meets compliance standards, which include safety, maintenance, employee communications, payroll and myriad working conditions.

"We found overall conditions at the facility to have improved to a much higher level," said Dr. S. Prakash Sethi, chairman of MIMCO and University Distinguished Professor, Zicklin School of Business, Baruch College. "As this is our third visit to MX3, it's obvious that the company has worked very hard to make this a positive environment for employees by successfully addressing the issues outlined by the independent council in previous audits."

The report also highlighted specific issues that require additional attention, including noise factors and further employee relations and training. But while the report states that noise levels in portions of the plant were noted as an employee concern, Tom Debrowski, executive vice president of worldwide operations for Mattel, confirms that a noise mapping survey has been completed and that Mattel had previously implemented a hearing protection program for employees who work in identified areas.

"The welfare of our employees is tantamount to how we measure and ensure our success as a corporate citizen," Debrowski said. "There always will be various challenges to overcome and new solutions to develop, and much of the success we've experienced can be attributed to the monitoring program itself and the commitment we've made to it."

The audits reaffirm Mattel's commitment to its Global Manufacturing Principles (GMP), the company's self-imposed global code of conduct. The first series of MIMCO audit reports were released in November 1999 documenting Mattel's owned-and-operated manufacturing facilities in Asia. The second series of reports, released in May 2000, detailed two Mattel facilities in Mexico. In May 2001, MIMCO released follow-up audits of two plants in China and one facility in Mexico, as well as an initial audit of a newly constructed facility in China.

About GMP

Mattel's Global Manufacturing Principles (GMP), launched in November 1997, are the cornerstone of the company's ongoing commitment to responsible manufacturing practices around the world. Adherence to GMP seeks to ensure that wages, working and living conditions, and employee access to management are just and fair, as well as to assure protection of the environment.

About MIMCO

MIMCO is an independent body that was voluntarily established by Mattel to monitor the company's GMP compliance. MIMCO uses an independent monitoring system created to provide objective checks and balances to ensure standards are consistently met. MIMCO consists of three independent, highly respected experts in codes of conduct, corporate responsibility, and children's and labor issues worldwide: Dr. S. Prakash Sethi, Dr. Paul F. McCleary, and Dr. Murray L. Weidenbaum. Dr. Sethi is Chairperson of the Council.

About Mattel

Mattel, Inc., (http://www.mattel.com) is the worldwide leader in the design, manufacture and marketing of toys and family products, including Barbie(R), the most popular fashion doll ever created. Dominating the toy and game market, the Mattel family is comprised of such best-selling brands as Hot Wheels(R), Matchbox(R), American Girl(R), Tyco(R) R/C and Scrabble(TM), as well as Fisher-Price(R) brands, including Little People(R), Rescue Heroes(TM), Power Wheels(R) and a wide array of entertainment-inspired toy lines. With worldwide headquarters in El Segundo, Calif., Mattel employs more than 27,000 people in 36 countries and more than 150 nations throughout the world. The Mattel vision is to be the world's premier toy brands -- today and tomorrow.

To view MIMCO reports, please visit the Responsibility page located at http://www.mattel.com.