• Net revenues were down 4%, to $454.9 million compared to $474.2 million a year ago;
• Net loss of ($3.7) million, or ($0.02) per diluted share, compared to net earnings of $6.5 million, or $0.03 per diluted share in 2004;
• Toy segment net revenues were up 9%, reflecting the initial shipment of STAR WARS products in advance of the May 19th movie release;
• Balance sheet continues to be strong, ending the quarter with cash, net of debt of $237.9 million.

Hasbro, Inc. (NYSE: HAS) today reported first quarter results. Worldwide net revenues for the quarter were $454.9 million compared to $474.2 million a year ago and included a $7.0 million positive impact from foreign exchange. The Company reported a net loss for the quarter of ($3.7) million or ($0.02) per diluted share, compared to net earnings of $6.5 million or $0.03 per diluted share in 2004.

"While our first quarter performance was mixed, overall, results were in line with our expectations as our business continues to be more weighted to the back half of the year," said Alfred J. Verrecchia, President and Chief Executive Officer.

Revenues in the U.S. Toys segment were $166.5 million for the quarter compared to $152.4 million a year ago, reflecting the initial shipment of STAR WARS products in advance of the May 19th movie release. The segment reported operating profit of $7.9 million for the quarter compared to $1.0 million last year.

Revenues in the Games segment were $99.0 million for the quarter compared to $127.6 million a year ago. The Games segment reported operating profit of $1.2 million compared to an operating profit of $19.6 million last year, primarily due to the decline in volume, particularly trading card games which have a higher margin than the board game business.

International segment revenues were $177.9 million for the quarter compared to $180.7 million a year ago. Absent a $7.1 million positive impact from foreign exchange, International segment revenues decreased 5.5% in local currency to $170.8 million. The International segment reported an operating loss of ($8.7) million compared to a loss of ($10.0) million a year ago.

"Due to the actions we have taken over the last few years to significantly lower our breakeven point, we delivered an operating profit despite lower revenue," said David Hargreaves, Chief Financial Officer. "This reduced breakeven point, combined with our strengthened balance sheet, positions us to deliver improved profitability this year."

The Company also reported first quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $42.6 million compared to $45.7 million in 2004. The attached schedule provides a reconciliation of EBITDA to net earnings (loss) for the first quarters of 2005 and 2004.

Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.