Sizable Costume and Accessory Line Complements JAKKS' Dress-up and Pretend Play Portfolio

JAKKS Pacific, Inc. has entered into a definitive agreement to acquire the assets of leading Halloween costume and decor company Disguise, Inc. and a related Hong Kong company, both subsidiaries of France-based Cesar S.A. This newest acquisition will firmly position JAKKS in the Halloween industry and further bolster its industry-leading position in the children's dress-up category.

San Diego-based Disguise is a 21-year-old leading manufacturer of Halloween costumes and accessories, with an expansive and innovative line based on hundreds of new and classic favorites for all ages. Disguise's portfolio includes non-licensed Halloween costumes based on everything from horror, pirates, historical figures and aliens to animals, vampires, angels and more, as well as popular licensed characters from top intellectual property owners including Disney, Marvel, Mattel, and many others. Disguise has received six "Licensee of the Year" LIMA Excellence Awards since 2002 for its outstanding licensed costume programs.

"Our entry into the Halloween industry is the next step in our acquisition strategy as we further diversify our portfolio with products such as Disguise® costumes that should provide synergies with our existing role-play and dress-up business, while simultaneously positioning JAKKS in the approximately $2 billion seasonal Halloween costume business," said Stephen Berman, President and COO of JAKKS. "We have been watching this business for years and believe we are going to inject some major league excitement into the celebration of Trick or Treat for both retailers and consumers with a great new variety of innovative product offerings for millions of fans of Halloween."

The acquisition is subject to closing conditions, including approval by Cesar's secured creditors, and is expected to be completed in December 2008. BNP Paribas acted as financial advisors to JAKKS Pacific in this transaction.