VTech(R) Announces Licensing Agreement With FUNimation(R) Entertainment

VTech(R) Announces Licensing Agreement With FUNimation(R) Entertainment

New V.Smile(TM) Smartridge(TM) to Feature Popular Noddy Character

CHICAGO, Nov. 7 /PRNewswire/ -- VTech, creator of the electronic learning category and the award-winning V.Smile product line, is coming to Toyland next year. VTech and FUNimation today announced a licensing agreement to feature Noddy in a 2006 Smartridge for use with the V.Smile TV Learning System and V.Smile Pocket. The Smartridge will be based on the beloved Noddy character from the international-hit, animated series seen on PBS Kids(R), "Make Way for Noddy," produced by Chorion PLC in collaboration with SD Entertainment. FUNimation(R) Entertainment licenses Noddy in North America.

Noddy will take preschoolers on an adventure that reinforces essential day-to-day skills, such as spelling and counting, while introducing gentle life lessons through an educational video game experience for children ages 3 to 5.

"VTech's partnership with FUNimation is a perfect extension of our mission to provide an entertaining way for kids to engage in video game play with safe, age-appropriate content, which parents can feel good about," said Julia Fitzgerald, vice president of marketing, VTech Electronics North America. "Noddy's kind, honest character will now have a new way to teach kids his life lessons."

"Noddy offers wholesome, family entertainment as he explores, experiments and learns all at the same time. This combination is the ideal match with VTech as it blends fun and education into its award-winning Smartridge library and is an excellent complement to our licensing program," said Bob Brennan, director of licensing at FUNimation Entertainment.

About V.Smile TV Learning System and V.Smile Pocket

VTech's V.Smile TV Learning System turns "game time into brain time" for children ages 3 to 7 by combining educational content, loveable characters and a video game platform into a system that connects directly to the television. V.Smile reinforces essential day-to-day skills and curricula such as language, math, vocabulary and problem solving through entertaining game play. Children navigate each game by using a hand-held, chunky joystick with oversized buttons, which can be adapted for right- and left-handed players alike.

For older kids (ages 5 and up), V.Smile Pocket is a handheld, educational video game system, which provides wireless gaming on the system's high- resolution LCD color screen. V.Smile Pocket reinforces the subjects kids are learning in school, such as advanced memory skills, science, spelling and reading.

V.Smile TV Learning System and V.Smile Pocket are compatible with the entire V.Smile Smartridge library. Each Smartridge features a multi-curricular Learning Adventure game that sets the child on an engaging mission. Smartridges also contain three- to- four Learning Zone games for kids to enjoy specific activities and practice a particular learning area, such as telling time or the alphabet. With 25 Smartridge titles to choose from, 15 of which are new in 2005, kids can skillfully navigate their learning adventures.

The V.Smile TV Learning System retails for approximately $59.99; V.Smile Pocket retails for approximately $89.99; Smartridges retail for approximately $19.99.

About the Agreement

This synergistic licensing agreement forms an integral part of VTech's three-year strategic plan to revitalize its electronic learning products business by developing an entirely new range of innovative products. In particular, the licensing agreement will be a powerful success factor in its V.Smile TV Learning System, a powerful platform that will bring incremental revenues from hardware and exchangeable software cartridges.

About Chorion

Chorion is a leading owner and manager of classic literary-based brands. Its foremost properties include Enid Blyton's Noddy, Roger Hargreaves' Mr. Men and Little Miss series, Agatha Christie's Hercule Poirot and Miss Marple and Georges Simenon's Inspector Maigret.

About the FUNimation Entertainment

FUNimation(R) Entertainment, a wholly-owned subsidiary of Navarre Corporation (NASDAQ:NAVR), is one of the nation's leading brand management and independent home video entertainment companies. The company's most recent initiative is the FUNimation ChannelSM, a new, 24-hour digital network featuring programming from the top anime brands in the United States. FUNimation has a proven formula for launching and advancing brands, and manages a full spectrum of rights for most of its brands including broadcasting, licensing, production, internet, and home video sales and distribution.

About VTech

VTech, the creator of the Electronic Learning Products (ELP) Category, is a world leader of age-appropriate learning toys. Since 1976, VTech has been developing high-quality, innovative educational products for children from birth to preteen that deliver "smart play" through the combination of entertaining electronic formats and engaging, age-appropriate content that help children learn while having fun.

VTech Electronics North America, LLC is based in Arlington Heights, Ill. VTech Electronics Ltd, the ELP division of VTech Group, maintains its headquarters in Hong Kong and is a pioneer in the establishment of China-based manufacturing facilities, selling its products via a strong brand platform supported by a well-established distribution network in North America, Europe and Asia.

For more information on V.Smile and VTech's additional product lines, visit http://www.vtech.com/ .

Source: VTech

CONTACT: Danielle Gray of Edelman, +1-312-297-7575, or
danielle.gray@edelman.com

Web site: http://www.vtech.com/

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