Sesame Workshop and Mervyn's department stores have entered into an exclusive agreement to bring merchandise featuring characters from SAGWA, THE CHINESE SIAMESE CAT, a PBS KIDS' series, to Mervyn's 264 stores. From January to March 2003, the retailer will feature SAGWA characters on children's products such as bedding, clothing, plush and watches. A percentage of the proceeds of all SAGWA merchandise sold will support Sesame Workshop educational programs around the world. SAGWA, THE CHINESE SIAMESE CAT, is produced by CineGroupe in association with Sesame Workshop, and adapted from the book THE CHINESE SIAMESE CAT by author Amy Tan, illustrated by Gretchen Schields. SAGWA is also currently appearing in a literacy ad from the Newspaper Association of America (NAA), the first featuring characters from a TV show rather than a movie. Previous ads, which are aimed at kids to encourage them to read, have featured characters from PINOCCHIO, LILO & STITCH, ICE AGE, BEAUTY AND THE BEAST, MONSTERS INC., SHREK, CATS & DOGS, FINAL FANTASY, CHICKEN RUN and STUART LITTLE.