Background

1. SKYLANDERS™ FRANCHISE: THE SUCCESS STORY Background • Skylanders Spyro’s Adventure ® changed the way kids look at toys and video games, as well as how they interact with them by ‘Bringing Toys to Life’. In a boldly innovative adventure game that carved out a new category in the industry of video games and toys, players collect real-world toys and transport them directly into the game using a mystical Portal of Power®.™ • Each toy contains a “brain” that remembers the player’s shared experiences and leveled-up abilities (e.g. stats, ability and attack upgrades, and gold collected) directly within each toy and this allows players to personally customize and power-up their characters • Using the mystical Portal of Power®, players lead a team of heroic Skylanders characters in an adventure to save their world. Portal Masters will journey through areas of Skylands, encountering enemies, solving fun puzzles, overcoming hazards and obstacles, and finding a variety of collectable rewards and treasure • Following the worldwide success of the original game, its sequel SkylandersGiants™ built upon the breakthrough fundamentals of Skylanders Spyro’s Adventure —merging the physical and virtual realms with an innovative line of cross-platform toys with “brains,” which players everywhere can magically bring to life in the world of Skylands • Through its successthe Skylanders franchise has also joined the mobile gaming world by bringing its signature blend of physical and virtual play from the console experience to mobile devices with: • Skylanders Battlegrounds™ • Skylanders Lost Islands™ • Skylanders Cloud Patrol™

2. Franchise Success • The Skylanders franchise (incl toys) crossed $500 million in U.S. sales, reaching this milestone faster than any other kids’ gaming property • Skylanders Spyro’s Adventure was the #1 best-selling kids’ game of 2011¹ • Skylanders Giants (incl toys) generated more than $195 million in U.S. sales 2 • Skylanders was the second largest videogame franchise in 2012, behindCall of Duty 3 • Over 19 million Skylanders toys have been sold across Europe since the release of Skylanders Spyro’sAdventure 4 • ¹According to The NPD Group, Gfk Charttrack, and internal estimates • ²According to The NPD Group • 3According to NPD, GfK and Internal estimates, inclusive of video game accessories • 4According to MC GfK data from January through November 2012 • Accolades • Skylanders Spyro’s AdventureandSkylanders Giants has been awarded a number of industry accolades and nominations across the U.S. and Europe, including: •  National Parenting Center’s Seal of Approval (U.S.) • National Parenting Publications Awards (U.S.) • Parent Tested Parent Approved Seal of Approval (U.S.) • BAFTA and Mums’ Choice Awards (UK) • Giga Maus Awards (Germany) • Italian Games Awards “Product of the Year 2011” • Swedish Games Awards “Franchise of the Year 2012” • Top Toys Award at Kid Expo 2012 (France) • 2013 Toy of the Year Awards Nomination: “Game of the Year” • 2013 Toy of the Year Awards Nomination: “Property of the Year” • 2013 Toy of the Year Awards Nomination: “Boy Toy of the Year” • 2013 Toy of the Year Awards Nomination: “E-connected Toy of the Year” • Skylanders Giants has also been featured in coveted “hot holiday gift” lists, including: • 2012 Toys“R”Us Holiday Hot Toy List • Toy Insider’s “Hot 20 Toys for the Holidays” • Time to Play’s “Holiday 2012 Most Wanted List” • Licensing Program • The Skylandersfranchise is supported by a robust licensing program that includes more than 120 licensees worldwide in more than 75 different categories, including Plush, Apparel, Home Décor, Bed and Bath, Party Goods, Board Games and Back to School, among others