• Net revenues up 4% to $988.1 million, compared to $947.3 million a year ago, driven by strong performance from STAR WARS products and the global games business;
• Net earnings of $92.1 million, or $0.47 per diluted share, compared to net earnings of $88.7 million, or $0.43 per diluted share in 2004;
• Games segment net revenues up 7%, with a strong performance from a number of board and electronic games, including CANDY LAND and MONOPOLY brands, as well as STAR WARS LIGHT SABER, MX DIRT REBEL, DREAMLIFE and WILD ADVENTURE MINI-GOLF plug and play games;
• U.S. Toys segment net revenues up 6%, reflecting strong performance from STAR WARS, FURBY, NERF, TRANSFORMERS, PLAYSKOOL and LITTLEST PET SHOP;
• Strong cash flow with a $300 million year-over-year improvement in debt, net of cash.

Alfred J. Verrecchia, President and Chief Executive Officer, said, "We are pleased with our third quarter results. Global revenues were up 4%, driven in part by STAR WARS and a significant increase in our games business excluding trading card games, as well as a strong performance from a number of other Hasbro brands, including FURBY, NERF, TRANSFORMERS, PLAYSKOOL, LITTLEST PET SHOP, MX DIRT REBEL plug and play game, CANDY LAND and MONOPOLY.

"Our performance year-to-date, along with the diversity, strength and innovation in our product line, reinforces the confidence we have in our ability to achieve our full-year financial goals. It's important however, to keep in mind that there is still a lot of business to be done in the fourth quarter. With the higher cost of gasoline and expected increases in home heating costs, it remains to be seen how much of an impact this will have on consumer spending during the holiday season," Verrecchia concluded.

Revenues in the U.S. Toys segment were $393.1 million for the quarter compared to $369.7 million a year ago, reflecting a strong performance from STAR WARS and a number of other brands including FURBY, NERF, TRANSFORMERS, PLAYSKOOL and LITTLEST PET SHOP. The segment reported an operating profit of $34.0 million for the quarter compared to $20.8 million last year.

Revenues in the Games segment were $252.9 million for the quarter compared to $236.5 million a year ago. The segment experienced strength in board and electronic games, including the CANDY LAND and MONOPOLY brands, as well as the following plug and play games: STAR WARS LIGHT SABER, MX DIRT REBEL, DREAMLIFE and WILD ADVENTURE MINI-GOLF. This was partially offset by a decline in trading card games, with both DUEL MASTERS and MAGIC: THE GATHERING trading card games down year over year. The Games segment reported operating profit of $45.5 million compared to $46.4 million last year, primarily due to a higher mix of games with electronic components which tend to have higher product costs than the traditional board games, as well as increases in royalty and amortization expenses related to STAR WARS.

International segment revenues were $333.1 million for the quarter compared to $331.6 million a year ago, reflecting strong performance from STAR WARS and new product introductions such as FURBY and B'DAMAN, as well as a number of other toy and game brands, including MY LITTLE PONY, LITTLEST PET SHOP, PARKER BROTHERS and MILTON BRADLEY board games. Partially offsetting this increase was a decline in BEYBLADE, VIDEONOW and trading card games. Absent a $4.7 million positive impact from foreign exchange, International segment revenues decreased 1% in local currency to $328.4 million. The International segment reported an operating profit of $45.0 million compared to an operating profit of $48.8 million a year ago, primarily due to increases in royalty and amortization expense related to STAR WARS.

"We are particularly pleased to have re-established year-over-year revenue growth in our Games segment, with continued strength in a number of our traditional board games, as well as new introductions in the plug and play category," said David Hargreaves, Chief Financial Officer.

"As a result of our strong cash flow and continued efforts to strengthen our balance sheet we improved our year-over-year debt, net of cash position by $300 million despite having repurchased $31.8 million of common stock year to date," Hargreaves concluded.

The Company reported third quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $187.9 million compared to $168.6 million in 2004. The attached schedules provide a reconciliation of diluted earnings per share and EBITDA to net earnings for the third quarters and nine-month periods 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.