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Non-Tech : Radica Games (RADA) -- Ignore unavailable to you. Want to Upgrade?

To: E.Bogusch who wrote (2428)	2/9/1998 9:00:00 AM
From: Scott	Respond to of 7111

Very interesting. Looks like Hasbro is trying to corner the market on hand held electronic games. This could be good for Radica as Hasbro may spin off some of Tiger's production to Radica as part of their OEM agreement.

To: E.Bogusch who wrote (2428)	2/9/1998 9:04:00 AM
From: mod	Read Replies (2) \| Respond to of 7111

Hasbro Acquires Tiger Electronics NEW YORK (Feb. 9) BUSINESS WIRE -Feb. 9, 1998--Hasbro Inc. (ASE:HAS) and Tiger Electronics Inc. announced today that they have entered into a definitive agreement for Hasbro to acquire the operating assets of Tiger and its affiliates. Tiger, based in Vernon Hills, Ill., is a leader in the development and distribution of electronic entertainment, including hand-held games, toys and learning aids. Privately held Tiger was founded in 1979 by its current President and CEO, Randy Rissman and Senior Executive Vice President, Roger Shiffman. Some of Tiger's top sellers include TV and Family games, Brain and Action games such as Brain Warp, Puzzle games like Lites Out, as well as Giga Pets, Game.Com, and Laser Tag. The purchase price is approximately $335 million, subject to certain closing adjustments, plus the value at closing of inventory, tooling, equipment and certain prepaid assets. The companies reported that the Hart Scott Rodino Anti-Trust Improvement Act waiting period has expired, and the transaction should be completed early in the second quarter. "Tiger brings Hasbro a rich portfolio of brands and expertise in an area that has great growth potential for us, particularly as electronic entertainment technologies converge," said Alan G. Hassenfeld, chairman and chief executive officer of Hasbro Inc. "The combination of Hasbro's and Tiger's product development know-how, together with our global brands and international marketing strength, make for an exciting match. We are also particularly pleased that Randy and Roger will continue to operate the company." "The sale of Tiger to Hasbro allows us to accelerate the growth of our products on a global basis, while expanding the opportunities for our dedicated employees," said Randy Rissman, Tiger's Chief Executive Officer. "We are proud to become part of the Hasbro family of companies and look forward to helping them become the market leader in electronic toys and electronic games." Hasbro is a worldwide leader in the design, manufacture and marketing of toys, games, interactive software, puzzles and infant care products. Both internationally and in the U.S., its Playskool, Kenner, Tonka, OddzOn, SuperSoaker, Milton Bradley, Parker Brothers, and Hasbro Interactive products, provides children and families with the highest quality and most recognizable toys and games in the world. -0- ld/bos* CONTACT: Hasbro Inc. Wayne S. Charness (News Media) Renita O'Connell (Investor Relations) 401/727-5600 or 212/645-2400 or Tiger Electronics Inc. Scott J. Forester, 847/913-8100

To: E.Bogusch who wrote (2428)	2/9/1998 9:18:00 AM
From: mod	Read Replies (2) \| Respond to of 7111

On first glance, it would appear to me to be a short-term negative for Radica. I would assume Radica will lose the Hasbro OEM business (which is not a big profit center) to Tiger, and Tiger gets access to better financing/research/distribution etc. OTOH, the fundamentals of Radica don't really change, so long-term the outlook remains positive. The key question is how will Radica's relationship with Hasbro change? Hasbro/Tiger is a much more formidable competitor than Tiger alone. I wonder if this is the news that emboldened FAHN et al to short Radica recently. Since the Hart-Scott-Rodino waiting period (15 days if cash tender offer, otherwise 30 days) has expired, this deal must have been signed for a while, and therefore there was ample time for the information to have become known. Since no one could think of a rational reason to short Radica, this news suddenly makes the decision to short RADAF much more understandable. Dennis