The toy chain will release its first line of ``E.T.'' products in September, timed with the opening of its 100,000-square-foot Times Square megastore. Toys R Us CEO John Eyler said he's been working with Spielberg to develop a new line of toys for the film, whose original consumer products tie-ins have been out of retail circulation for a decade and a half.

``He's a very inventive toy creator,'' Eyler said of the famed filmmaker. ``We've actually been working on product development for four months now. We've been working in anticipation of this announcement.''

The new line is expected to include toys, games, puzzles, sporting goods, apparel, accessories, gifts, collectibles, party goods, school supplies and electronics. But Eyler said all parties are sensitive to the potential for oversaturating the market with ''E.T.'' merchandise and will take pains to avoid that.

``This is a remarkable opportunity to extend the special appeal that 'E.T.' has achieved in all of our lives,'' Spielberg said in a statement. ``We welcome this relationship and look forward to many years to come.''

Eyler added: ``We're interested in bringing this property to life as a long-term property. We hope this is a license that lasts for many years in our stores.''

He declined to say if the toy chain paid an upfront sum to secure the ``E.T.'' rights.

Cynthia Cleveland, president of Universal Consumer Products Group, said the studio also is pursuing agreements with some potential ``blue-chip partners'' to develop interactive ``E.T.'' products as well.

The 20th anniversary edition of ``E.T.'' will include previously unseen footage, new computer-generated enhancements and a digitally remixed soundtrack, officials said. The 1982 picture, Universal's highest-grossing domestic film ever at $399.8 million, was last re-released in 1985.

SOURCE: Reuters/Variety REUTERS

[Posted 10/23/2000]