Toys "R" Us, one of the world's leading retailers of toys, children's apparel and baby products, will be the exclusive retailer for all new Teletubbies plush items sold in the US and Canada for 2002-2003. The new line of Teletubbies plush product will make its exclusive debut at Toys "R" Us stores and on-line at Toysrus.com this Fall.

"Toys "R" Us is consistently looking for ways to bring unique items to our guests. As children discover the Teletubbies, they are enchanted for years to come," said Warren Kornblum, Chief Marketing Officer. "By being the exclusive retailer of plush Teletubbies products, we can really have some fun with characters that children love."

"The Teletubbies experience for children is one of laughter, joy and delight," says Andrew Kerr, Vice President, Marketing and Strategic Alliances for Ragdoll. "We believe that Toys "R" Us shares our dedication to the quality of that experience. Their innovative approach to toy retailing, and their concern that the shopping experience for their guests be enjoyable and rewarding, make them our preferred partner in this exciting introduction of new Teletubbies product to children and their caregivers."

Ragdoll has a broadcast arrangement for Teletubbies with PBS through 2008. The award-winning program has been a consistent top ten performer for PBS with children aged 2-5 and with moms with children under the age of three. Teletubbies can be seen in 97% of all households in the US. A global phenomenon, more than one billion children in over 120 territories currently can enjoy Teletubbies.

About Toys "R" Us

Toys "R" Us, one of the world's leading retailers of toys, children's apparel and baby products currently operates 1,604 stores: 698 toy stores in the United States; 511 international toy stores, including franchise stores; 183 Kids "R" Us children's clothing stores; 169 Babies "R" Us stores and 43 Imaginarium stores. Toysrus.com, a leader in online sales of toys and baby goods, sells products through its Internet sites at www.toysrus.com, www.babiesrus.com and www.imaginarium.com.

About Ragdoll

Based in Stratford-upon-Avon, England, Ragdoll was founded in 1985 by acclaimed children's television producer Anne Wood. She created the Teletubbies series with Andrew Davenport for the BBC in 1997. Ragdoll and its children's programming Teletubbies, Brum, Tots TV, Rosie & Jim, BadJelly the Witch and Open a Door have achieved international recognition. Ragdoll's Office for the Americas in New York City will be responsible for successfully introducing and managing all of these innovative Ragdoll properties in North and South America.

Brum is a unique live action comedy series for 3-8 year olds featuring a real little car that travels into the big town for wild adventures. Tots TV was the first mainstream children's program in Britain to feature a different spoken language, and helps children understand that different languages are an everyday part of life around the world. Rosie & Jim, two of the most popular faces in children's television, are much-loved mischievous ragdolls who, along with their friend Duck, live on a narrow boat and secretly come to life for their young audience. Spike Milligan's classic children's book about the wickedest witch in the world, BadJelly the Witch, has been animated by Ragdoll in collaboration with Norma Farnes Management. Based on his original drawings, Spike features in vision as a storyteller interacting with the animated child characters. For more information about Ragdoll Ltd visit website www.ragdoll.co.uk.