MONTREAL, June 9 - Mega Bloks Inc. announced today that it has entered into an agreement with Bandai Co., Ltd. of Japan for the joint development and distribution of construction toys for Japan and other countries in Asia. Details of the venture were made public on the occasion of a special press conference held at the Canadian embassy in Tokyo and attended by Marc Bertrand, President and CEO of Mega Bloks, and Bandai President and COO, Takeo Takasu. Under the terms of the multi-year agreement, Mega Bloks will cooperate with Bandai on the design and manufacture of construction toys specifically geared to the Japanese market. The first jointly developed products, which will be co-branded MEGA BLOKS(R) and BANDAI(R), will be available at retail in Japan this summer. Future plans for the venture include the distribution of selected products by Mega Bloks in North America, Europe and other markets outside Japan and Asia.
"It is a privilege for Mega Bloks to combine forces with a distribution and media powerhouse like Bandai whose wealth of proprietary and licensed characters commands a loyal following inside and outside Japan," said Bertrand. "The significance of this opportunity is that it will greatly assist us in broadening and deepening familiarity with the MEGA BLOKS(R) brand in the world's second largest toy market, Japan, as well as in several other Asian markets where Bandai products enjoy excellent trade and consumer support," he added.
"Bandai exhaustively researched the construction toy category and concluded that Mega Bloks would be a natural partner for this project, given the successful inroads they have made with the MEGA BLOKS(R) construction toy brand," Mr. Takasu commented. "It has turned out that we also have very complementary approaches to product development, so we are confident that this project will yield excellent results," he added. The parties contemplate launching a complete range of construction toys embodying Bandai's well-known characters, such as Power Rangers, Masked Rider, and, for preschoolers, Anpanman.
About Mega Bloks Inc.
Mega Bloks creates fun, educational and high quality construction toys that inspire kids and parents to play and learn together. The MEGA BLOKS(R) system features basic and themed construction toys for boys and girls of all ages. Headquartered in Montreal, Mega Bloks is a global organization employing approximately 1000 people with sales in over 100 countries.
About Bandai Co., Ltd.
Bandai is the leading toy manufacturer in Japan and the world's third largest, with annual revenues in excess of US$2 billion. It produces a wide range of toy, candy, apparel, vending machine, amusement and media products that appeal to children and adults alike and are well known worldwide. Bandai is listed in the first section of the Tokyo Stock Exchange (stock code: 7967) and its ADRs trade under the ticker symbol BNDCY on the NASDAQ Stock Exchange.
(MEGA BLOKS and the MEGA BLOKS logo are registered trademarks of Mega Bloks Inc. BANDAI is a registered trademark of Bandai Co., Ltd. Other trademarks and character names referred to herein are the property of their respective owners).
