To: Panita who wrote (68960 ) 4/15/1999 9:59:00 AM From: kendall harmon Read Replies (2) | Respond to of 119973
MAT here is the release Thursday April 15, 9:05 am Eastern Time Company Press Release SOURCE: Mattel, Inc. Mattel to Launch Online Venture, Expects to Create Internet Subsidiary LOS ANGELES, April 15 /PRNewswire/ -- Mattel, Inc. (NYSE: MAT - news) today announced that the company will spend an initial $50 million to launch an Internet venture, which is expected to result in the creation of a new subsidiary later this year, a portion of which may be offered to the public. ''Upon completion of our merger with The Learning Company, which is expected next month, Mattel will be uniquely positioned to succeed on the Internet,'' Jill E. Barad, Mattel's chairman and chief executive officer, said. ''Our vision is to create a premier online destination and E-commerce site to better serve children and their families. ''With brands like Barbie®, Carmen Sandiego(TM), Hot Wheels®, American Girl®, Family Treemaker, Reader Rabbit® and Fisher-Price®, we will have an unprecedented portfolio of branded proprietary content and products that can be brought together at one 'Mattel.com' web destination,'' Barad said. ''We expect this strategy to result in over $60 million of E-commerce revenues this year, with gross margins that are greater than our traditional business. ''Our powerful brands bring consumers to our sites, and cause them to return again and again,'' Barad said. ''Many of these sites today average visits of 20 minutes or more in duration because of the unique entertainment and educational experience they provide. And the most exciting content we have planned is yet to come. ''Together with The Learning Company we operate over 80 web sites, and we begin this venture with a 25 million-name database of consumers who already trust our many proprietary brands,'' she said. ''We see tremendous synergies to be achieved by harnessing all of this brand power at one Internet destination. ''We will provide superior customer service, offering many of our software and toy products, as well as new downloadable electronic software, through the convenience of one shopping cart,'' she said. ''And we will fulfill orders through the $1 billion combined existing capacity of The Learning Company, Pleasant Company and Mattel,'' Barad said. ''This strategy will be a win/win for our traditional retailers, E-tailers and Mattel, as we employ new cooperative concepts that will benefit us all,'' Barad said.