The transaction is expected to be financed with a combination of cash and debt and is expected to close in the first quarter of 2012.  The transaction is not expected to have a material impact on Mattel’s 2012 earnings, but is expected to be increasingly accretive as the benefits of owning these brands are reflected in Mattel’s results, including the addition of Thomas & Friends® wood business in 2013 and retention of Thomas & Friends® plastic and die-cast business from 2015 onwards.

The transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.  RBC Capital Markets, LLC acted as financial advisor and Latham & Watkins LLP served as legal advisor to Mattel in connection with the transaction.  BofA Merrill Lynch acted as financial advisor and Weil, Gotshal & Manges LLP served as legal advisor to HIT Entertainment in connection with the transaction.

About HIT Entertainment

HIT Entertainment is one of the world's leading independent children's entertainment producers and rights-owners. HIT's portfolio includes properties, such as Thomas & Friends, Barney, Bob the Builder, Fireman Sam, Angelina Ballerina, Mike the Knight, Pingu and Rainbow Magic. Launched in 1989, HIT’s lines of business span television and video production, content distribution, publishing, consumer products licensing and live events and has operations in the UK, US, Canada, Hong Kong and Japan.  HIT is a part-owner of US-based preschool channel, Sprout®. For more information, visit www.hitentertainment.com.

About Apax Partners

Apax Partners is one of the world’s leading private equity investment groups.  It operates across the United States, Europe and Asia and has more than 30 years of investing experience.  Funds under the advice of Apax Partners total over $40 billion around the world.  These Funds provide long-term equity financing to build and strengthen world-class companies.  Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services.

About Mattel

As the worldwide leader in play, the Mattel family comprises such best-selling brands as Barbie, the most popular fashion doll ever introduced, Hot Wheels, American Girl and Fisher Price brands, which includes Little People, Power Wheels and a wide array of entertainment-inspired toy lines. In 2011, Mattel was named as one of FORTUNE Magazine's "100 Best Companies to Work For" for the fourth year in a row, and was also ranked among Corporate Responsibility Magazine's "100 Best Corporate Citizens." With worldwide headquarters in El Segundo, Calif., Mattel employs approximately 31,000 people in 43 countries and territories and sells products in more than 150 nations. At Mattel, we are "Creating the Future of Play." Follow Mattel on www.facebook.com/mattel and www.twitter.com/mattel.