Mattel and Intel Launch Intel® Play™ Line of PC-Enhanced Toys

Intel Play QX3™ Microscope and Intel Play Me2Cam™ Will Be Showcased at American International Toy Fair in New York

NEW YORK, Feb. 3, 1999 -- Mattel, Inc. (NYSE: MAT) and Intel Corporation today announced the first two products in the Intel® Play™ line of PC-enhanced toys. These products will be shown at the American International Toy Fair in New York on Feb 8-12. The products combine the power of PCs and the "magic" of toys into a new generation of interactive play. The products, Intel Play QX3™* Microscope and Intel Play Me2Cam™*, will be available from Mattel in the fall of 1999, at an approximate retail price of $99 each. The products have been jointly designed and developed by a team of engineers and toy designers from the two companies.

"Mattel and Intel have joined forces to create interactive toys that revolutionize the way children play and learn," said Doug Glen, chief strategy officer of Mattel, Inc. "Intel Play products tap into children's natural curiosity with fun, open-ended, exploratory play experiences that build self-esteem, cognitive skills, and enthusiasm for creative discovery."

"The Intel Play products apply technology in imaginative ways that continue to make PCs the center of learning and play for kids today," said Ronald J. Whittier, senior vice president for Intel and general manager of the Content Group. "Parents trust that Mattel knows play and Intel knows technology. These products blend both companies' expertise to encourage children to have fun with Intel processor-based PCs."

Intel Play products tap the power of the PC to create "magical" never-seen-before play experiences. Instead of using technology as an ingredient to add extra features to a traditional toy, Intel Play products put the power of the PC in a child's hands -- empowering kids to play, learn and create in new and different ways.

Intel Play QX3 Microscope
With the Intel Play QX3 Microscope, children can magnify and display microscopic objects on their PC screens and then play with the images in creative ways. The microscope uses digital video imaging technology to let kids view, enlarge and save images of bugs, plants and other everyday objects. The microscope can also be lifted off its base so children can explore the world around them. The software included with the microscope allows children to capture video and still images, as well as create time-lapse movies which they can share by printing, e-mailing or creating an on-screen show.

Intel Play Me2Cam
The Intel Play Me2Cam creates a whole new system of play where children see themselves on the computer screen and use their own bodies to navigate in a virtual world. The Me2Cam system comes with a digital video camera and CD-ROM software. In the fall, the Me2Cam will ship with a CD-ROM suite of games called Fun Fair™*. Other application packs featuring additional learning and creativity activities will follow.

Both Intel Play titles are accompanied by software that guides parents through the set-up and provides children with fun, age-appropriate play experiences.

With $4.8 billion in annual revenues, Mattel, Inc. is a worldwide leader in the design, manufacture and marketing of children's products. Headquartered in El Segundo, Calif., Mattel has offices and facilities in 36 countries and sells its products in 155 countries throughout the world.

* Other names and brands may be claimed as the property of others.