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Nelvana Spins New Toy Deal

Nelvana and Spin Master Ltd. have teamed up on a line of specialty toys and games developed from two new animated action adventure series. The toys and games from the animated series DI-GATA DEFENDERS and BAKUGAN, which is in production and will begin airing in 2007, are set to make their debut at the Spin Master booth at the Canadian Toy & Hobby Fair on Saturday, Jan. 27, 2007, at the Metro Convention Centre in Toronto (Booth #602). Both companies, headquartered in Toronto, are working together to market and promote the toys.

The first collaborative property is DI-GATA DEFENDERS, a 2D action-adventure series for kids 6-11. A ratings' success since it premiered on TELETOON in Aug. 2006, DI-GATA follows four young heroes on their quest to find four pure stones and to recast the "spell of binding," restoring order to the realm of RaDos. The series has also been sold in France, Italy, Germany, Mexico, Latin America, India and Australia, with more international sales imminent.

Spin Master has signed on as master toy licensee for DI-GATA and is producing a game, which includes action figures, dice and trading cards, replicating the battles from the TV series. The dice game will hit store shelves in Canada in March 2007, with apparel, interactive and accessories to follow in coming months.

The second property, BAKUGAN, a co-production between Nelvana, Spin Master, Sega Toys, TMS and Japan Vistec, is a 2D traditional series in the anime style, which tells the story of Dan and his friends as they battle their Bakugan Brawlers to save Vestroia and ultimately Earth from destruction. It's for kids 6-11 and 52x30 episodes of the show are being produced.

Spin Master will be producing and distributing the BAKUGAN merchandise line globally, excluding Asia. The game features marble-like balls and metallic playing cards that are used to transform the balls into multiple collectible characters. Players can compete against various opponents and select from a wide range of strategy options. This, combined with the card game features, hopes to create an entertainment brand with depth and long-term potential. The toys have already been released in Japan and have become a massive hit.

"Nelvana is very excited to join forces with Spin Master in the development of these two fantastic properties," said Doug Murphy, president, Nelvana Enterprises. "It is especially exciting given the evident synergies stemming from our Canadian connection. This partnership will certainly produce two of the most successful action/adventure properties we have seen in some time."

"The collaboration of energetic entertainment and innovative product is vital to engaging children," said Ronnen Harary, chairman/ceo, Spin Master Ltd. "Spin Master is thrilled to partner with Nelvana to bring life to these incredibly exciting action-adventure properties."

Nelvana is part of Corus Ent. Inc., a Canadian-based media and entertainment company. For more information, visit www.corusent.com.

Spin Master Ltd. is a multi-category children's entertainment company that, since 1994, has been designing, developing, manufacturing and marketing consumer products for children around the world. Spin Master is ranked among the top 10 North American toy manufacturers. Spin Master is comprised of such best-selling brands as Air Hogs, Aquadoodle, Bella Dancerella, Black Belts, Bounce 'Round, Lil'Luvables Fluffy Factory, Moon Sand and Marshmallow. Spin Master employs more than 300 people with offices in Toronto, New York, Los Angeles, Paris, London, Hong Kong and China. For more information, visit www.spinmaster.com.

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Rick DeMott
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