To build sales and pump up profits - He-Man, Masters of the Universe action figures relaunched - Statistical Data Included

DSN Retailing Today, August 26, 2002

THE POWER OF MATTEL MAKES HE-MAN[TM] RISE AGAIN

In the 1980s, He-Man[TM] and the Masters of the Universe[TM] were the most powerful characters in the universe, not only in a fictional world, but on store shelves as well, where the character spurred sales exceeding $2 billion in toys and licensed product by the end of the 1980s.

Mike Young Productions and Hallmark are relaunching the proven characters with a 90 minute animated feature on Cartoon Network[R] followed by a weekly episode starting September 2002. Mattel will relaunch the property with an extensive toy line and related licensed merchandise. He-Man[TM] and the Masters of the Universe[TM] is, once again, out to conquer the imaginations of boy age 4 to 12.

Nostalgic properties are catching the mindshare of a new set of consumers, and the Masters of the Universe[TM] characters of today are positioned to flex their muscles--for the good of mankind, not to mention retailers--with as much power as they generated two decades ago. The characters are expected to have multigenerational appeal that will drive sales of a variety of products and collectibles.

The He-Man[TM] and the Masters of the Universe[TM] story line is especially compelling in today's modern world. He-Man[TM] is not only powerful, but a role model for good withstanding the threat of encroaching evils. "I Have The Power," the battle cry of Prince Adam[TM] as he transforms into He-Man[TM], is perhaps even more compelling today than it was in the hero's first incarnation.

He-Man[TM] and the Masters of the Universe[TM] represent the ultimate in transformation, empowerment and fantasy. The nemesis of He-Man[TM], Skeletor[TM], is one of the greatest villains of all time and helps kids understand the juxtaposition of good versus evil.

He-Man[TM] and the Masters of the Universe[TM] returns to animation with a contemporary look and fresh new adventures. By doing so, the characters weave together the cutting-edge graphics young boys have come to expect with the classic heritage He-Man[TM] and the Masters of the Universe[TM] enjoys. Few properties can deliver that combination.

The Masters of the Universe[TM] mythology is rich. Castle Grayskull[TM], for instance, holds the knowledge of the universe within a gleaming orb hidden in the depths of its structure. The Sorceress, an oracle of beauty and foresight, stands vigil over the castle and hands the task of guarding the secret of Castle Grayskull[TM] to He-Man[TM]. He-Man[TM] appears when there is danger or when the people of Eternia need his wisdom and strength. The castle is a fortress against evil, which represents a powerful icon to kids.

HE-MAN[TM] CELEBRATES ITS 20TH ANNIVERSARY--MATTEL REINTRODUCES THE POWER OF HE-MAN[TM]

As the Masters of the Universe[TM] franchise turns 20 years old, the essence of the characters has been recapturea by the Mattel design team and marketing team led by its President of Boys' Entertainment Matt Bousquette, who, coincidentally, was part of the Masters of the Universe[TM] initiative two decades ago.

"It has been a fantastic opportunity for me to be a part of the re-launch of He-Man[TM] and the Masters of the Universe[TM]," said Matt Bousquette, President of the Boys/Entertainment Division of Mattel, Inc. "Twenty years ago, the property was a huge hit. Two decades later, He-Man[TM] and the Masters of the Universe[TM] are inspiring a new generation. It's a classic tale of good versus evil that still resonates with kids." The nostalgic good vibes of He-Man[TM] and the Masters of the Universe[TM] is already inspiring one of today's biggest retail success stories, Hot Topic, to stock up on the property. "He-Man"[TM] is an '80s property that our teenage customers remember from when they were younger. We have requests from customers and from our stores," said Cindy Levitt, Vice President and General Merchandise Manager of Hot Topic. "We want to broaden the styles and categories because we have had such success with the items we have had in the stores. Teenagers remember things they grew up with. They are sentim ental memories."

POWERFUL PROMOTIONAL SUPPORT

Today's generation of boys will be introduced to He-Man[TM] and the Masters of the Universe[TM], thanks to new programming coupled with mammoth promotional support for the property.

Mattel plans to pump more than $20 million in both advertising and marketing for the He-Man[TM] and the Masters of the Universe[TM] toys and licensed products, including several retail promotions for fall 2002 and 2003.

Mike Young Productions and Cartoon Network[R] will further ensure the property's popularity with a high-velocity television schedule. To kick things off, there is a 90-minute TV segment produced by Mike Young Productions that will debut in August on the Cartoon Network[R]. The story will undoubtedly attract kids and parents since "He-Man[TM] and the Masters of the Universe[TM]: The Beginning" features the never-before-told origin of He-Man[TM] and Skeletor[TM]. That's followed by 26 new episodes, which reintroduce 14 of the new original characters on 2 teams, good and evil. These diverse teams contain new characters with distinctive looks to round out the property. The story lines keep in mind the more inquisitive and complex minds of today's youngsters.