Fourth Quarter Highlights

• Worldwide net sales up 4 percent;
• Domestic gross sales down 3 percent;
• International gross sales up 18 percent;
• Worldwide gross sales for core brands: Barbie® up 4 percent; Hot Wheels® up 21 percent; Core Fisher-Price® up 15 percent and American Girl® brands down 2 percent;
• Operating income was $362.1 million, down $26.6 million.

Full-Year Highlights

• Worldwide net sales up 6 percent;
• Domestic gross sales down 1 percent;
• International gross sales up 17 percent;
• Worldwide gross sales for core brands: Barbie® up 1 percent; Hot Wheels® up 16 percent; Core Fisher-Price® up 19 percent and American Girl® brands down 2 percent;
• Operating income was $730.1 million, up $1.3 million.

Mattel, Inc. today reported 2007 fourth quarter and full-year financial results. For the quarter, the company reported net income of $328.5 million, compared to last year's fourth quarter net income of $286.4 million. For the year, the company reported net income of $600.0 million, compared to last year's net income of $592.9 million.

For the fourth quarter, operating income of $362.1 million included charges and incremental costs of approximately $42 million related to the company's product recalls during 2007. For the year, operating income of $730.1 million included charges and incremental costs of approximately $110 million related to the company's product recalls during 2007.

"Considering the challenges we faced in 2007, the business performed fairly well, including strong performances from our international business as well as Core Fisher-Price®," said Robert A. Eckert, chairman and chief executive officer of Mattel. "The new year not only offers its own set of challenges, including higher costs for commodities, labour and quality testing, but it also offers a new set of opportunities, as we build on the momentum of our international success and introduce a strong line-up of toys based on entertainment properties."

Financial Overview
For the quarter, net sales were $2.19 billion, a 4 percent increase from $2.11 billion last year. On a regional basis, fourth quarter gross sales were down 3 percent in the U.S. and were up 18 percent in international markets. Operating income for the quarter was down 7 percent to $362.1 million.

For the year, net sales were $5.97 billion, a 6 percent increase from $5.65 billion last year. On a regional basis, full-year gross sales were down 1 percent in the U.S. and were up 17 percent in international markets. Operating income for the year was $730.1 million, flat compared to the prior year.

Mattel Girls & Boys Brands
Fourth quarter worldwide gross sales for the Mattel Girls & Boys Brands business unit were $1.35 billion, up 9 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 4 percent and worldwide gross sales for Other Girls Brands were up 19 percent. Worldwide gross sales for the Wheels category, which includes the Hot Wheels®, Matchbox® and Tyco® R/C brands, were up 15 percent. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, were up 6 percent for the quarter.

For the year, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $3.70 billion, or up 8 percent. Worldwide gross sales for the Barbie® brand were up 1 percent. Worldwide gross sales for Other Girls Brands were up 2 percent for the year. Worldwide gross sales for the Wheels category were up 14 percent. Worldwide gross sales for the Entertainment business, including Radica® and Games and Puzzles, were up 16 percent.

Fisher-Price® Brands
Fourth quarter worldwide gross sales for the Fisher-Price® Brands business unit, which includes the Fisher-Price®, Little People®, and Power Wheels® brands, were $840.3 million, up 4 percent due to strong international sales of Core Fisher-Price®. For the year, worldwide gross sales for the Fisher-Price® Brands business unit were $2.44 billion, up 8 percent driven by double-digit global sales growth of Core Fisher-Price®.

American Girl® Brands
Fourth quarter gross sales for the American Girl® Brands business unit, which offers American Girl® branded products direct to consumers, were $241.6 million, down 2 percent. For the year, gross sales for the American Girl® Brands business unit were $431.3 million, down 2 percent.