* Worldwide net sales up 7 percent;
* Domestic gross sales down 3 percent and international gross sales up 18 percent;
* Worldwide gross sales for core brands: Barbie® up 6 percent; Hot Wheels® up 20 percent; Core Fisher-Price® up 22 percent and American Girl® brands down 10 percent;
* Operating income was $63.5 million compared to operating income of $49.9 million in the second quarter of 2006.

Mattel, Inc. today reported 2007 second quarter financial results. For the quarter, the company reported net income of $43.1 million compared to last year's second quarter net income of $37.4 million.

"Overall we had a good quarter, especially given the comparisons with strong sales from movie-related toys in last year's second quarter," said Robert A. Eckert, chairman and chief executive officer of Mattel. "While the first half is not particularly significant to the highly seasonal toy industry, our positive results continue to reflect the benefits of our diversified portfolio of global brands."

Financial Overview

For the quarter, net sales were $1.02 billion, up 7 percent compared to $957.7 million last year. On a regional basis, second quarter gross sales decreased 3 percent in the U.S. and increased 18 percent in international markets. Operating income for the quarter was $63.5 million, compared to prior year's operating income for the quarter of $49.9 million.

Mattel Girls and Boys Brands

For the quarter, worldwide gross sales for the Mattel Girls & Boys Brands business unit were $638.4 million, up 5 percent versus a year ago. Worldwide gross sales for the Barbie® brand were up 6 percent, with increases in international markets more than offsetting declines in the U.S. Worldwide gross sales for Other Girls Brands were down 1 percent. Worldwide gross sales for Wheels, which includes the Hot Wheels®, Matchbox® and Tyco® R/C brands, were up 20 percent, led by double-digit growth in the Hot Wheels® and Matchbox® lines. Worldwide gross sales for the Entertainment business, which includes Radica® and Games and Puzzles, declined 2 percent.

Fisher-Price Brands

Second quarter worldwide gross sales for the Fisher-Price Brands business unit, which includes the Fisher-Price® Core, Fisher-Price® Friends and the Power Wheels® brand, were $410.4 million, up 12 percent versus the prior year. This reflects continued strong growth in Core Fisher-Price® worldwide.

American Girl Brands

Second quarter gross sales for the American Girl Brands business unit, which offers American Girl® branded products directly to consumers, were $55.8 million, down 10 percent versus last year.