For the quarter, net sales were $745.3 million, flat compared to last year's $742.0 million. Operating income, excluding charges, was up 56 percent at $64.2 million. On a regional basis, domestic first quarter gross sales decreased by 5 percent while international first quarter gross sales increased by 13 percent, or flat in local currency.

"As I have said previously, many of the challenges we experienced last year, including a lackluster economy, low consumer confidence, and the conflict in the Middle East, have continued, if not worsened, in 2003," said Robert A. Eckert, chairman and chief executive officer of Mattel. "Focusing on our long-term strategies has allowed us to execute well through these challenges."

Mattel Brands Business Unit

On February 28, 2003, Mattel announced the consolidation of its Girls and Boys/Entertainment divisions into one business unit, renamed Mattel Brands. The new global division includes the Barbie®, Other Girls Brands, Wheels, and Entertainment categories. As part of the reorganization, American Girl® Brands was separated from the previous Girls business unit and will now be reported separately.

Worldwide gross sales for the Mattel Brands business unit were $532.3 million, a 1 percent increase. Worldwide gross sales for the Barbie® brand were down 1 percent with double-digit international gains offset by declines in domestic sales. Worldwide gross sales for Other Girls Brands, which include the Polly Pocket!®, What's Her Face!(TM) and ello(TM) brands, were up 7 percent for the quarter driven by solid performances by Polly Pocket!® and ello(TM).

For the quarter, worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco® R/C brands, were down 6 percent. Double-digit international growth of Hot Wheels® was offset by domestic declines in the Hot Wheels®, Matchbox® and Tyco® R/C brands.

Worldwide gross sales for the Entertainment category, which also includes the Games and Puzzles and Male Action segments, were up 20 percent for the quarter led by the re-launch of the He Man® and Masters of the Universe® brand, strong gains in the Games and Puzzles segment, as well as solid performances by Yu-Gi-Oh!(TM) and the new Warner Bros. properties.

Fisher-Price® Brands Business Unit

First quarter, worldwide gross sales for the Fisher-Price® Brands business unit, which includes the Fisher-Price®, Little People®, Rescue Heroes(TM), and Power Wheels® brands, were $233.3 million, up 3 percent. Worldwide gross sales of the core Fisher-Price® brand increased 8 percent, bolstered by strong international sales of the Babygear(TM) product line, while Power Wheels® sales declined. Worldwide gross sales for Fisher-Price character brands increased, led by gains in the Dora the Explorer(TM) product line.

American Girl® Brands Business Unit

First quarter, worldwide gross sales for the American Girl® Brands business unit, which offers American Girl® branded products direct to consumers, were $46.4 million, down 8 percent, as increases in the historically-based American Girls Collection® were more than offset by declines in American Girl Today®.

Financial Realignment

Mattel recorded pre-tax charges of $11.6 million in the quarter as part of its $250 million financial realignment plan. The first quarter charges were largely related to the consolidation of its Girls and Boys/Entertainment divisions, consolidation of two manufacturing facilities in Mexico and streamlining back office functions. These charges are included in Cost of Sales ($1.7 million), Other Selling and Administrative Expenses ($1.2 million) and Restructuring and Other Charges ($8.7 million) in the consolidated statement of operations. Since the announcement of the plan in September 2000, Mattel has recorded $235.3 million in pre-tax charges. The company is on track to deliver at least the targeted initial cumulative pre-tax cost savings of approximately $200 million over the three-year duration of the plan.

Live Webcast

Mattel will webcast its 2003 first quarter earnings conference call at 5:30 a.m. Pacific time (8:30 a.m. Eastern time) today. The conference call will be simulcast on the "Investors & Media" section of www.mattel.com. To listen to the call, log on to the Web site at least 15 minutes early to register, download and install any necessary audio software. An archive of the call may be accessed beginning two hours after the completion of the live call.

To listen to a replay of the call via telephone, domestic and international callers should dial + (719) 457-0820. The passcode is 578411. The telephonic playback will be available beginning the morning of the call at 8:30 a.m. Pacific time (11:30 a.m. Eastern time) through Friday, April 18 at 9 p.m. Pacific time (midnight Eastern time).

Information required by Regulation G will be available at the time of the webcast on the "Investors & Media" section of www.mattel.com.

About Mattel

Mattel, Inc., (www.mattel.com) is the worldwide leader in the design, manufacture and marketing of toys and family products, including Barbie®, the most popular fashion doll ever created. Leading the toy and game market, the Mattel family is comprised of such best-selling brands as Hot Wheels®, Matchbox®, American Girl®, and Tyco® R/C, as well as Fisher-Price brands (www.fisher-price.com), including Little People®, Rescue Heroes(TM), Power Wheels® and a wide array of entertainment-inspired toy lines. With worldwide headquarters in El Segundo, Calif., Mattel employs more than 25,000 people in 36 countries and sells products in more than 150 nations throughout the world. The Mattel vision is to be the world's premier toy brands -- today and tomorrow.