"The main merchandise focus of this store will be clearance products that have already been marked down significantly in our regular KB Toys stores," said Michael L. Glazer, President and CEO of KB Toys. "We can now offer our customers these items in the KB Toys Clearance Center where they have been priced from 20-50% off regular store prices. This format will provide us with an additional link in our supply chain to liquidate last season's products."

Customers visiting the new KB Toys Clearance Center will find a rewarding shopping experience yielding big savings in the more than 15,000 square foot store, the largest store in KB Toys' 80-year history. Wide aisles stocked with thousands of items offer a "treasure hunt" atmosphere where customers can discover last season's hot toys at great savings.

The KB Toys Clearance Center also provides KB Toys with an additional
channel that will allow last season's products to be efficiently moved from regular KB Toys stores to the KB Toys Clearance Center. This steady stream of product movement will ensure a constantly changing assortment at the KB Toys Clearance Center and will make room for regular KB Toys stores to receive fresh, new assortments of the hottest name brand toys and video games.

KB Toys is the nation's largest combined mall-based and online specialty toy retailer, operating more than 1,300 stores in all 50 states, the American Territory of Guam and the Commonwealth of Puerto Rico. KB Toys operates retail stores under the names KB Toys(R), KB Toy Works(R), KB Toy Outlet(TM), Toy Liquidators(R), KB Toy Express(R) and offers online shopping through KBtoys.com(TM) (http://www.kbtoys.com) and eToys(R) (http://www.etoys.com). KB Holdings, Inc., the parent corporation, is a privately held company headquartered in Pittsfield, Massachusetts.