OAK BROOK, Ill., July 22, 2004 -- McDonald's(R) Happy Meals have changed the way families enjoy dinner out together and to celebrate this quarter century of fun, McDonald's is offering Ty Teenie Beanie Babies in Happy Meals beginning July 23 through August 19. The Happy Birthday Happy Meal(R) will signal the return of the hugely popular Ty Teenie Beanie Babies, this time dressed up as beloved McDonald's icons and McDonaldland(R) characters past and present. McDonald's patrons will receive one of 12 new Ty Teenie Beanie Babies in special birthday Happy Meals at participating McDonald's restaurants nationwide, while supplies last.

This collection of Ty Teenie Beanie Babies will be a new incarnation of long-time McDonaldland character favorites such as Ronald McDonald(R) the Bear, Birdie(R) the Bear, Hamburglar(R) the Bear and Grimace(R) the Bear. Other TY Teenie Beanie Babies showcase tasty favorites like Burger the Bear, McNuggets(R) the Bear, Shake the Bear and Fries the Bear. Familiar McDonald's icons are represented with Golden Arches the Bear, Happy Meal(R) the Bear and Big Red Shoe the Bear. And finally, a special Happy Meal 25th Bear will be emblazoned with the 25th Anniversary Happy Meal logo to commemorate this milestone.

"Many parents today can remember going to McDonald's as a child and the thrill of opening the Happy Meal box to see what toy was inside, and they share that excitement today with their own children," said Kathy Pyle, director of family and kids marketing for McDonald's. "We're excited to bring back one of the most popular Happy Meal offering to celebrate the 25th anniversary of Happy Meals."

Since 1979, the McDonald's Happy Meal program has given kids of all ages a wide variety of toys, gadgets, and games that highlight the most fun and exciting trends. Happy Meals have become a part of growing up for kids and parents who enjoyed the first round of Happy Meals as kids in the '70s and '80s. Happy Meals continue to change with the times, as McDonald's recently debuted Happy Meal Choices as part of McDonald's balanced lifestyles commitment to children. Happy Meal Choices gives young guests the opportunity to enjoy additional food choices with their Happy Meals including Apple Dippers (fresh, peeled apple slices) served with a low fat caramel dipping sauce, and new beverage choices including 100% pure Minute Maid apple juice and low fat white and chocolate Milk Jugs, served in child-friendly containers.

An instant success with kids and collectors, the first Ty Teenie Beanie Babies were offered in April 1997. As a result of the overwhelming demand, McDonald's continued the tradition of offering Ty Teenie Beanie Babies annually through the year 2000.

"We are thrilled to be involved again with McDonald's as part of their 25th Birthday Happy Meal celebration," said Ty Warner, founder and CEO of Ty. "Teenie Beanie Babies have garnered a place in the record books as well as popular culture, and we're honored to be the toy of choice for the anniversary celebration."

McDonald's

McDonald's (NYSE: MCD) is the world's leading food service retailer with more than 30,000 McDonald's restaurants serving 46 million customers each day in more than 100 countries. More than 80 percent of McDonald's restaurants around the world are owned and operated by independent, local businessmen and women. Please visit our website at http://www.mcdonalds.com to learn more about the Company.

TY

Founded in 1986 by Ty Warner, creator of the wildly popular Beanie Babies(R), Ty is the leader in plush toys. In addition to Beanie Babies(R), the company's product line includes: Teenie Beanie Boppers(R), Beanie
Boppers(R), Punkies(R), Pluffies(R), Ty Classic(R), Beanie Buddies(R) and Baby Ty(R). The red Ty Heart Logo(R), recognized around the world, can be found on all Ty products available at finer specialty gift retailers. Visit Ty on the Internet at http://www.ty.com.

McDonald's(R) Celebrates 25 Years of Happy Meals With a Classic Collection of Ty Teenie Beanie Babies(R)

FACT SHEET

McDonald's and Ty are coming together again, this time to celebrate the 25th Anniversary of McDonald's Happy Meals. The Happy Birthday Happy Meal(R), available July 23-August 19 will feature Ty Teenie Beanie Babies decked out as McDonald's icons of the past and present.

Each of these Ty Teenie Beanie Babies are bears who call to mind the
things that make a trip to McDonald's delicious and fun for kids of any age:

• Happy Meal 25th Bear
• Burger the Bear
• Birdie(R) the Bear
• Golden Arches the Bear
• McNuggets(R) the Bear
• Ronald McDonald(R) the Bear
• Happy Meal(R) the Bear
• Shake the Bear
• Hamburglar(R) the Bear
• Big Red Shoe the Bear
• Fries the Bear
• Grimace(R) the Bear

A Ty Teenie Beanie Babies bear will be included in each Happy Meal while supplies last. In addition, many restaurants may offer Ty Teenie Beanie Babies at an a la carte price.