PAWTUCKET, R.I. -- Nov. 29, 2002 -- Hasbro, Inc. today reported that the Office of Fair Trading in the United Kingdom (the "OFT") issued a decision in its case concerning pricing practices by the Company's United Kingdom subsidiary ("Hasbro U.K.") with certain of its wholesale distributors. The OFT found that Hasbro U.K. had entered into agreements with certain distributors to fix prices in violation of U.K. competition laws and assessed a fine of approximately GBP4.95 million (approximately $7.7 million at current exchange rates).

"We are surprised and disappointed at the level of the fine imposed by the OFT, which we believe to be disproportionate," said Alan G. Hassenfeld, Chairman and CEO of Hasbro, Inc. "The activities cited by the OFT occurred over a very short period of time and through a limited number of wholesale distributors. Hasbro believes that such activities had no significant effect on competitiveness within its small network of distributors or on consumers. We are therefore planning to appeal."

As previously disclosed, the OFT is conducting a second inquiry into Hasbro U.K.'s trading arrangements with certain of its direct retail accounts. The OFT has yet to issue a final decision in the retailer case, although it had issued a preliminary decision in May of 2002 proposing to find that Hasbro U.K. had entered into unlawful pricing agreements with two of its retail accounts. The Company expects the OFT to announce a final decision in the retailer case within the next several months.

In the case of appeal by the Company, no payment of any fine in either the wholesaler or retailer case will be required until such appeals are finalized.

The Company is in the process of analyzing the OFT's decision and whether that decision affects the previously disclosed range of loss for the two cases of approximately GBP160,000 to GBP26,000,000. In light of the OFT decision in the wholesaler case, the Company now believes that once it completes its analysis of the OFT's decision, it will accrue a charge to earnings above and beyond the GBP160,000 charge originally taken in 2001. The Company is working with counsel to complete its analysis of the OFT's decision and the status of the cases, and anticipates taking this charge in the fourth quarter of 2002. Currently, the Company does not expect the amount of the charge to exceed approximately GBP13.5 million or approximately $20.9 million at current exchange rates.