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<SEC-DOCUMENT>0000046080-08-000016.txt : 20080211
<SEC-HEADER>0000046080-08-000016.hdr.sgml : 20080211
<ACCEPTANCE-DATETIME>20080211081820
ACCESSION NUMBER:		0000046080-08-000016
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080211
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080211
DATE AS OF CHANGE:		20080211

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HASBRO INC
		CENTRAL INDEX KEY:			0000046080
		STANDARD INDUSTRIAL CLASSIFICATION:	GAMES, TOYS & CHILDREN'S VEHICLES (NO DOLLS & BICYCLES) [3944]
		IRS NUMBER:				050155090
		STATE OF INCORPORATION:			RI
		FISCAL YEAR END:			1230

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06682
		FILM NUMBER:		08591176

	BUSINESS ADDRESS:	
		STREET 1:		1027 NEWPORT AVE
		STREET 2:		P O BOX 1059
		CITY:			PAWTUCKET
		STATE:			RI
		ZIP:			02861
		BUSINESS PHONE:		4014318697

	MAIL ADDRESS:	
		STREET 1:		200 NARRAGANSETT PARK DRIVE
		CITY:			PAWTUCKET
		STATE:			RI
		ZIP:			02862-0200

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HASBRO BRADLEY INC
		DATE OF NAME CHANGE:	19850814

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HASBRO INDUSTRIES INC
		DATE OF NAME CHANGE:	19840917

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HASSENFELD BROTHERS INC
		DATE OF NAME CHANGE:	19720615
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>feb118k.htm
<DESCRIPTION>FORM 8-K DATED FEBRUARY 11, 2008
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>UNITED STATES</TITLE>
<META NAME="author" CONTENT="Registered User">
<META NAME="date" CONTENT="02/06/2008">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:20pt; font-family:Times New Roman; font-size:18pt" align=center><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center><B>Washington, D.C.&nbsp; 20549</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:18pt" align=center><B>&nbsp;</B></P>
<P style="margin:0pt; line-height:20pt; font-family:Times New Roman; font-size:18pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B>&nbsp;</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Date of Report (Date of earliest event reported): <B>February 11, 2008</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:18pt" align=center><B>&nbsp;</B></P>
<P style="margin:0pt; line-height:20pt; font-family:Times New Roman; font-size:18pt" align=center><B>Hasbro, Inc.</B></P>
<P style="margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman" align=center>(Exact name of registrant as specified in its charter)</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=top width=198.733><P style="margin:0pt; font-family:Times New Roman" align=center><B>Rhode Island</B></P>
</TD><TD valign=bottom width=14.933><P style="margin:0pt; font-family:Times New Roman; font-size:1pt" align=center><B>&nbsp;</B></P>
</TD><TD valign=top width=198.667><P style="margin:0pt; font-family:Times New Roman" align=center><B>1-6682</B></P>
</TD><TD valign=bottom width=14.867><P style="margin:0pt; font-family:Times New Roman; font-size:1pt" align=center><B>&nbsp;</B></P>
</TD><TD valign=top width=198.667><P style="margin:0pt; font-family:Times New Roman" align=center><B>05-0155090</B></P>
</TD></TR>
<TR><TD valign=top width=198.733><P style="margin:0pt; font-family:Times New Roman" align=center>(State or other jurisdiction<BR>
of incorporation)</P>
</TD><TD valign=bottom width=14.933><P style="margin:0pt; font-family:Times New Roman; font-size:1pt" align=center>&nbsp;</P>
</TD><TD valign=top width=198.667><P style="margin:0pt; font-family:Times New Roman" align=center>(Commission File Number)</P>
</TD><TD valign=bottom width=14.867><P style="margin:0pt; font-family:Times New Roman; font-size:1pt" align=center>&nbsp;</P>
</TD><TD valign=top width=198.667><P style="margin:0pt; font-family:Times New Roman" align=center>(IRS Employer<BR>
Identification No.)</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-family:Times New Roman">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR><TD valign=top width=305.467><P style="margin:0pt; font-family:Times New Roman" align=center><B>1027 Newport Ave., Pawtucket, Rhode Island &nbsp;</B></P>
</TD><TD valign=bottom width=14.933><P style="margin:0pt; font-family:Times New Roman; font-size:1pt" align=center><B>&nbsp;</B></P>
</TD><TD valign=top width=305.467><P style="margin:0pt; font-family:Times New Roman" align=center><B>02862</B></P>
</TD></TR>
<TR><TD valign=top width=305.467><P style="margin:0pt; font-family:Times New Roman" align=center>(Address of principal executive offices)</P>
</TD><TD valign=bottom width=14.933><P style="margin:0pt; font-family:Times New Roman; font-size:1pt" align=center>&nbsp;</P>
</TD><TD valign=top width=305.467><P style="margin:0pt; font-family:Times New Roman" align=center>(Zip Code)</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:12pt; line-height:10pt; font-family:Times New Roman; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Registrant&#146;s telephone number, including area code:&nbsp;&nbsp; <B>(401) 431-8697</B></P>
<P style="margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=24.933><P style="margin:0pt; font-family:Wingdings">&#168;</P>
</TD><TD valign=top width=599.067><P style="margin:0pt; font-family:Times New Roman">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=24.933><P style="margin:0pt; font-family:Wingdings">&#168;</P>
</TD><TD valign=top width=599.067><P style="margin:0pt; font-family:Times New Roman">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=24.933><P style="margin:0pt; font-family:Wingdings">&#168;</P>
</TD><TD valign=top width=599.067><P style="margin:0pt; font-family:Times New Roman">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=24.933><P style="margin:0pt; font-family:Wingdings">&#168;</P>
</TD><TD valign=top width=599.067><P style="margin:0pt; font-family:Times New Roman">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman" align=center><B><BR>
<BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman"><B>Item 2.02 Results of Operations and Financial Condition</B></P>
<P style="margin-top:0pt; margin-bottom:10pt; text-indent:36pt; font-family:Times New Roman">On February 11, 2008, we announced our financial results for the fiscal quarter and fiscal year ended December 30, 2007, and certain other financial information. The press release, which has been attached as Exhibit 99, discloses a financial measure, Earnings before Interest, Taxes, Depreciation and Amortization (&quot;EBITDA&quot;), that is considered a non-GAAP financial measure as defined under SEC rules. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. Management believes that EBITDA is one of the appropriate measures for evaluating our operating performance, because it reflects the resources available for strategic opportunities in
cluding, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. However, this measure should be considered in addition to, and not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with generally accepted accounting principles as more fully discussed in our financial statements and filings with the SEC. The EBITDA measures included in our press release have been reconciled to the most directly comparable GAAP measures as is required under SEC rules regarding the use of non-GAAP financial measures. &nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-family:Times New Roman">This press release also includes the Company's International segment net revenues excluding the impact of changes in exchange rates. Management believes that the presentation of the International segment net revenues minus the impact of exchange rate changes provides information that is helpful to an investor's understanding of the segment's underlying business performance absent exchange rate fluctuations which are beyond the Company's control. </P>
<P style="margin-top:7.5pt; margin-bottom:0pt; text-indent:24.5pt; font-family:Times New Roman">As used herein, &quot;GAAP&quot; refers to accounting principles generally accepted in the United States of America. &nbsp;</P>
<P style="margin-top:0pt; margin-bottom:10pt; font-family:Times New Roman"><B><BR></B></P>
<P style="margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman"><B>Item 9.01&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</B></P>
<P style="margin-top:0pt; margin-bottom:10pt; padding-left:48pt; text-indent:-24pt; font-family:Times New Roman">(d)<SMALL><SMALL>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <BIG><BIG>Exhibits</P>
<P style="margin-top:0pt; margin-bottom:-12pt; padding-left:84pt; text-indent:-36pt; font-family:Times New Roman">99</P>
<P style="margin-top:0pt; margin-bottom:10pt; padding-left:84pt; text-indent:-3pt; font-family:Times New Roman">Press Release, dated February 11, 2008, of Hasbro, Inc. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0pt; margin-bottom:10pt; text-indent:36pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt; text-indent:36pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=297.333>&nbsp;</TD><TD valign=top width=43.4><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD><TD valign=top width=284.2><P style="margin:0pt; font-family:Times New Roman">HASBRO, INC.</P>
</TD></TR>
<TR><TD valign=top width=297.333><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD valign=top width=43.4><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD><TD valign=top width=284.2><P style="margin:0pt; font-family:Times New Roman">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=297.333><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD><TD valign=top width=43.4><P style="margin:0pt; font-family:Times New Roman">By:</P>
</TD><TD style="border-bottom:1pt solid #000000" valign=top width=284.2><P style="margin:0pt; font-family:Times New Roman">/s/ David D.R. Hargreaves</P>
</TD></TR>
<TR><TD valign=top width=297.333><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD><TD valign=top width=43.4><P style="margin:0pt; font-family:Times New Roman">Name:</P>
</TD><TD valign=top width=284.2><P style="margin:0pt; font-family:Times New Roman">David D.R. Hargreaves</P>
</TD></TR>
<TR><TD valign=top width=297.333><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD><TD valign=top width=43.4><P style="margin:0pt; font-family:Times New Roman">Title:</P>
</TD><TD valign=top width=284.2><P style="margin:0pt; font-family:Times New Roman">Executive Vice President, Finance and Global Operations and Chief Financial Officer </P>
<P style="margin:0pt; font-family:Times New Roman">(Principal Financial and Accounting Officer)</P>
</TD></TR>
<TR><TD valign=top width=297.333><P style="margin:0pt; font-family:Times New Roman">Date: February 11, 2008</P>
</TD><TD valign=top width=43.4><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD><TD valign=top width=284.2><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman">&nbsp;</P>
<P style="margin-top:20pt; margin-bottom:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman; font-size:12pt" align=center><BR>
<BR></P>
<P style="page-break-before:always; margin-top:0pt; margin-bottom:12pt; font-family:Times New Roman" align=center><B>EXHIBIT INDEX<A NAME="ExhibitIndex_132412"></A></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border-bottom:1pt solid #000000" valign=bottom width=53.133><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:8pt" align=center><B>Exhibit&nbsp;No.</B></P>
</TD><TD valign=bottom width=6.6><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:1pt" align=center><B>&nbsp;</B></P>
</TD><TD style="border-bottom:1pt solid #000000" valign=bottom width=562.933><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:8pt"><B>Description</B></P>
</TD><TD valign=bottom width=2.267><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:1pt" align=center><B>&nbsp;</B></P>
</TD></TR>
<TR><TD valign=top width=53.133><P style="margin:0pt; font-family:Times New Roman">99</P>
</TD><TD valign=bottom width=6.6><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD><TD valign=bottom width=562.933><P style="margin:0pt; font-family:Times New Roman">Press Release, dated February 11, 2008, of Hasbro, Inc.</P>
</TD><TD valign=bottom width=2.267><P style="margin:0pt; font-family:Times New Roman; font-size:1pt">&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exhibit99.htm
<DESCRIPTION>PRESS RELEASE, DATED FEBRUARY 11, 2008, OF HASBRO, INC.
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 99</TITLE>
<META NAME="author" CONTENT="Chris Goldner">
<META NAME="date" CONTENT="02/06/2008">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right><B>EXHIBIT 99</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=289.2><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify><B>For</B> <B>Immediate Release</B></P>
</TD><TD valign=top width=338.4><P style="margin:0pt; padding-left:-5.4pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>Contact</B>: </P>
<P style="margin:0pt; padding-left:-4.5pt; line-height:14pt; font-family:Arial; font-size:12pt" align=right>Karen A. Warren (Investor Relations)</P>
</TD></TR>
<TR><TD valign=top width=289.2><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>February 11, 2008</P>
</TD><TD valign=top width=338.4><P style="margin:0pt; padding-left:-5.4pt; line-height:14pt; font-family:Arial; font-size:12pt" align=right>401-727-5401</P>
</TD></TR>
<TR><TD valign=top width=289.2>&nbsp;</TD><TD valign=top width=338.4><P style="margin:0pt; padding-left:-5.4pt; line-height:14pt; font-family:Arial; font-size:12pt" align=right>Wayne S. Charness (News Media)</P>
</TD></TR>
<TR><TD valign=top width=289.2>&nbsp;</TD><TD valign=top width=338.4><P style="margin:0pt; padding-left:-5.4pt; line-height:14pt; font-family:Arial; font-size:12pt" align=right>401-727-5983</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><B><BR></B></P>
<A NAME="OLE_LINK3"></A><P style="margin:0pt; padding-right:36pt; line-height:16pt; font-family:Arial; font-size:14pt" align=center><B>Hasbro Reports Record Net Earnings</B></P>
<P style="margin:0pt; padding-right:36pt; line-height:16pt; font-family:Arial; font-size:14pt" align=center><B>and Seventh Consecutive Year of E.P.S. Growth</B></P>
<P style="margin:0pt; padding-right:36pt; font-family:Arial; font-size:12pt"><BR></P>
<P style="margin-top:5pt; margin-bottom:5pt; padding-right:36pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify><B>Fourth Quarter Highlights</B></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:54pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Net earnings of $133.7 million, an increase of 24%;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:54pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Earnings per diluted share of $0.84, up 35%;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:54pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:54pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Net revenues of $1.3 billion, up 16% from a year ago.</B></FONT></P>
<P style="margin:0pt; padding-right:36pt; text-indent:180pt; font-family:Arial; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:36pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>Full-Year Highlights </B></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Net earnings of $333.0 million, an increase of over $100 million compared to last year&#146;s record net earnings of $230.1 million; </B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Operating profit improved 38% to $519.4 million or 13.5% of net revenues;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Earnings per diluted share of $1.97, a 53% increase from the prior year;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Net revenues of $3.8 billion, up 22% from a year ago;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>North American segment net revenues were up 15% and International segment net revenues were up 33%;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>Strength in the business was broad based both in terms of geography and product categories;</B></FONT></P>
<P style="margin-top:5pt; margin-bottom:-14pt; padding-left:36pt; padding-right:36pt; text-indent:-18pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B>&#183;</B></P>
<P style="margin-top:0pt; margin-bottom:5pt; padding-left:36pt; padding-right:36pt; line-height:14pt; font-family:Symbol; font-size:12pt" align=justify><B></B><FONT FACE="Arial"><B>During the year, the Company repurchased 20.8 million shares of common stock at a total cost of $587.0 million.</B></FONT></P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>Pawtucket, RI (February 11, 2008) -- Hasbro, Inc. (NYSE: HAS) today reported 2007 fourth quarter and full-year results. &nbsp;<A NAME="OLE_LINK1"></A><A NAME="OLE_LINK4"></A>For the fourth quarter the Company reported net revenues of $1.3 billion, an increase of $181.4 million or 16%, compared to $1.1 billion a year ago. &nbsp;The Company reported net earnings for the quarter of $133.7 million or $0.84 per diluted share, compared to $108.3 million or $0.62 per diluted share in 2006. &nbsp;</P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>For the year, the Company reported record net earnings of $333.0 million, or $1.97 per diluted share, compared to $230.1 million or $1.29 per diluted share in 2006. &nbsp;The 2007 results include a favorable tax adjustment of $29.6 million or $0.17 per diluted share that was taken in the third quarter. &nbsp;In addition, the 2007 and 2006 full-year results included expenses of $0.23 per diluted share or $44.4 million, and $0.14 per diluted share or $31.8 million, respectively, related to the Lucas warrants mark to market. &nbsp;The Company exercised the right to purchase the warrants in the second quarter of 2007. &nbsp;For the year, worldwide net revenues were $3.8 billion, an increase of $686.1 million or 22%, compared to $3.2 billion a year ago. &nbsp;</P>
<A NAME="OLE_LINK2"></A><A NAME="OLE_LINK6"></A><P style="margin-top:5pt; margin-bottom:5pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>&nbsp;&#147;2007 was another strong year for Hasbro. &nbsp;We achieved net earnings of $333.0 million, an increase of over $100 million compared to last year&#146;s record net earnings of $230.1 million. &nbsp;In addition, it was the third consecutive year of record net earnings and our seventh consecutive year of earnings per share growth,&#148; said Alfred J. Verrecchia, President and Chief Executive Officer. </P>
<P style="margin-top:5pt; margin-bottom:5pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>&#147;Revenues were up 22% for the year and 16% for the quarter, as the business continued to be strong both in terms of category and geographic performance, providing us with momentum going into 2008,&#148; Verrecchia concluded.</P>
<P style="margin-top:6pt; margin-bottom:6pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>North American segment net revenues were $2.5 billion, an increase of $329.7 million or 15%, compared to $2.1 billion in 2006. &nbsp;The growth in revenue is attributable, in part, to the success of TRANSFORMERS, MARVEL product lines, FURREAL FRIENDS, LITTLEST PET SHOP, BABY ALIVE, MY LITTLE PONY, TOOTHTUNES, NERF, OPERATION and SORRY. &nbsp;STAR WARS also remained very strong.<I> &nbsp;</I>The North American segment reported an operating profit of $318.7 million compared to $276.0 million in 2006.</P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>International segment net revenues were $1.3 billion, an increase of $319.3 million or 33%, compared to $959.3 million in 2006, or an increase of 24%, net of the favorable foreign exchange impact of $88.5 million. &nbsp;The growth in revenue is attributable, in part, to the success of TRANSFORMERS, MARVEL product lines, LITTLEST PET SHOP, MY LITTLE PONY, PLAYSKOOL, FURREAL FRIENDS, MONOPOLY, OPERATION and THE GAME OF LIFE. &nbsp;STAR WARS also remained very strong<I>.</I> &nbsp;The International segment reported an operating profit of $158.8 million compared to $90.9 million in 2006. </P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>&#147;I&#146;m especially pleased that when you combine the robust revenue growth we achieved in 2007, with the cost structure improvements and share count reductions we have achieved in recent years, the result is a 53% increase in reported earnings per share,&#148; said David Hargreaves, Executive Vice President and Chief Financial Officer. &nbsp;&#147;In addition, we generated $601.8 million in operating cash flow during 2007,&#148; Hargreaves concluded.</P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>The Company repurchased a total of 20.8 million shares of common stock during 2007, at a total cost of $587.0 million, leaving $109.6 million in the share repurchase authorization as of year end. &nbsp;Since the inception of its buyback program in June 2005, the Company has repurchased 45.9 million shares at a total cost of $1.1 billion, at an average price of $23.73 per share. &nbsp;Additionally, last week the Board of Directors increased the share buy-back program by a further $500 million and increased the quarterly dividend by $0.04 per share to $0.20 per share; this is the fifth consecutive year the dividend was increased.</P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>The Company will web cast its earnings conference call at 8:30 a.m. <A NAME="OLE_LINK5"></A>Eastern Standard Time today. Investors and the media are invited to listen at http://www.hasbro.com (select &quot;Corporate Info&quot; from the home page, click on &quot;Investor Information,&quot; and then click on the web cast microphone).</P>
<P style="margin:0pt; padding-right:36pt; text-indent:18pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; line-height:14pt; font-family:Arial; font-size:12pt" align=justify>Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. &nbsp;Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.</P>
<P style="margin:0pt; padding-right:36pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-right:36pt; font-family:Arial" align=justify>Certain statements contained in this release contain &quot;forward-looking statements&quot; within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company&#146;s future opportunities and ability to achieve its financial goals and may be identified by the use of forward-looking words or phrases such as &quot;anticipate,&quot; &quot;believe,&quot; &quot;could,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;look forward,&quot; &quot;may,&quot; &quot;planned,&quot; &quot;potential,&quot; &quot;should,&quot; &quot;will&quot; and &quot;would.&quot; Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. Specific factors that might cause such a difference includ
e, but are not limited to: the Company's ability to design, manufacture, source and ship new and continuing products on a timely and cost-effective basis, as well as interest in and acceptance and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover development, manufacturing, marketing, royalty and other costs of products; economic and public health conditions in the various markets in which the Company and its customers and suppliers operate throughout the world, including factors which impact the retail market, disposable income or consumer demand for the Company&#146;s products, the Company's ability to manufacture and deliver products, higher fuel and other commodity prices, higher transportation costs and potential transportation delays, currency fluctuations and government regulation; the concentration of the Company's customers; the inventory policies of the Company&#146;s retail customers, including the concentration o
f the Company's revenues in the second half and fourth quarter of the year, together with increased reliance by retailers on quick response inventory management techniques, which increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight and compressed shipping schedules; work stoppages, slowdowns or strikes, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees in a competitive environment; concentration of manufacturing for many of the Company&#146;s products in the People&#146;s Republic of China; the risk of produ
ct recalls or product liability suits; market conditions, third party actions or approvals and the impact of competition which could reduce demand for the Company&#146;s products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization; and other risks and uncertainties as may be detailed from time to time in the Company's public announcements and SEC filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.</P>
<P style="margin:0pt; padding-right:36pt; font-family:Arial" align=justify>This presentation includes a non-GAAP financial measure as defined under rules of the Securities and Exchange Commission (&#147;SEC&#148;), specifically EBITDA. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. EBITDA (earnings before interest, taxes, depreciation and amortization) represents net earnings excluding, interest expense, income taxes, depreciation and amortization. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions. However, this measure should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepar
ed in accordance with GAAP as more fully discussed in the Company's financial statements and filings with the SEC. As used herein, &quot;GAAP&quot; refers to accounting principles generally accepted in the United States of America. &nbsp;This presentation also includes the Company&#146;s International segment net revenues excluding the impact of changes in exchange rates. &nbsp;Management believes that the presentation of International segment net revenues minus the impact of exchange rate changes provides information that is helpful to an investor&#146;s understanding of the segment&#146;s underlying business performance absent exchange rate fluctuations which are beyond the Company&#146;s control.</P>
<P style="margin:0pt; padding-right:36pt; font-family:Arial"><BR></P>
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<P style="margin:0pt; padding-right:36pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center># # #</P>
<P style="margin:0pt; padding-right:36pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>(Tables Attached)</P>
<P style="margin:0pt; padding-right:36pt; font-family:Arial; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:36pt; font-family:Arial; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><B><BR></B></P>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial; font-size:12pt"><BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=204.933 colspan=4><P style="margin:0pt; line-height:20pt; font-family:Arial; font-size:18pt"><B>HASBRO, INC.</B></P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=450 colspan=8><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>CONSOLIDATED CONDENSED BALANCE SHEETS</B></P>
</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=204.933 colspan=4><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">(Thousands of Dollars)</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-left:7.45pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Dec. 30,</P>
<P style="margin:0pt; padding-left:7.45pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>2007</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-left:7.45pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Dec. 31,</P>
<P style="margin:0pt; padding-left:7.2pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=100.933 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B>ASSETS</B></P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-left:7.2pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Cash and Cash Equivalents</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>&nbsp;$&nbsp;&nbsp;&nbsp;774,458</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;715,400</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Accounts Receivable, Net</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>654,789</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>556,287</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Inventories</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>259,081</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>203,337</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Other Current Assets</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>199,912</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>243,291</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Total Current Assets</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,888,240</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,718,315</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Property, Plant and Equipment, Net</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>187,960</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>181,726</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Other Assets</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,160,863</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,196,864</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Total Assets</P>
</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,237,063</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:3.25pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,096,905</P>
</TD></TR>
<TR><TD valign=top width=272.333 colspan=5>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=========</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=========</P>
</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=36.667>&nbsp;</TD><TD valign=top width=370.4 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B>LIABILITIES AND SHAREHOLDERS' EQUITY</B></P>
</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467>&nbsp;</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Short-term Borrowings</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,201</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,582</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Current Portion of Long-term Debt</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>135,348</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Payables and Accrued Liabilities</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>742,122</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>895,311</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Total Current Liabilities</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>887,671</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>905,893</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Long-term Debt</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>709,723</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>494,917</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Other Liabilities</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>254,577</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>158,205</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Total Liabilities</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,851,971</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,559,015</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Total Shareholders' Equity</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,385,092</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,537,890</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>----------------</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Total Liabilities and Shareholders' Equity</P>
</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,237,063</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,096,905</P>
</TD></TR>
<TR><TD valign=top width=339.667 colspan=6>&nbsp;</TD><TD valign=top width=67.4>&nbsp;</TD><TD valign=top width=42.933>&nbsp;</TD><TD valign=top width=92.467><P style="margin:0pt; padding-right:4.8pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=========</P>
</TD><TD valign=top width=21.867>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=========</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=380 colspan=7><P style="margin:0pt; line-height:20pt; font-family:Arial; font-size:18pt"><B>HASBRO, INC.</B></P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=590 colspan=11><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>CONSOLIDATED STATEMENTS OF OPERATIONS</B></P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=198 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><U>Quarter Ended</U></P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=198 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><U>Year Ended</U></P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=290 colspan=6><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">(Thousands of Dollars and Shares Except Per Share Data)</P>
</TD><TD valign=top width=90><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>Dec. 30,</P>
<P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2007</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>Dec. 31,</P>
<P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2006</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>Dec. 30,</P>
<P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2007</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>Dec. 31,</P>
<P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2006</P>
</TD></TR>
<TR><TD valign=top width=290 colspan=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-left:7.45pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD></TR>
<TR><TD valign=top width=204.667 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net Revenues</P>
</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$1,297,844 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$1,116,398 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,837,557 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,151,481&nbsp; </P>
</TD></TR>
<TR><TD valign=top width=204.667 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Cost of Sales</P>
</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>538,935</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>445,913</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,576,621</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,303,885&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Gross Profit</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>758,909</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>670,485</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>2,260,936</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,847,596&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Amortization</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,194</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>21,038</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>67,716</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>78,934&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Royalties</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>110,988</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>62,191</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>316,807</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>169,731&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=290 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Research and Product Development</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>49,631</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>49,143</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>167,194</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>171,358&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Advertising</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>149,459</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>126,847</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>434,742</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>368,996&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=290 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Selling, Distribution and Administration</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>234,528</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>218,573</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>755,127</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>682,214&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=274.533 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Operating Profit</P>
</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>200,109</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>192,693</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>519,350</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>376,363&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=274.533 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Interest Expense</P>
</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,501</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>7,425</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>34,618</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>27,521&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=274.533 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Other (Income) Expense, Net</P>
</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>708</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,719</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>22,350</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>7,368&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=290 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Earnings before Income Taxes </P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>186,900</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>170,549</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>462,382</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>341,474&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=204.667 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Income Taxes</P>
</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>53,168</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>62,267</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>129,379</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>111,419&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=120.333 colspan=3>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>---------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=204.667 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net Earnings </P>
</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;133,732 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;108,282 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;333,003</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;230,055&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=204.667 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Per Common Share</P>
</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=245.067 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net Earnings</P>
</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Basic</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.91 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.68 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38&nbsp; </P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Diluted</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.84 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.62 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.97 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29&nbsp; </P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=245.067 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Cash Dividends Declared</P>
</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.16 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.12 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.64 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.48&nbsp; </P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=290 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Weighted Average Number of Shares</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=90.867 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Basic</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>146,866</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>159,655</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>156,054</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>167,100&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=90.867 colspan=2>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=90.867 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Diluted</P>
</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>161,140</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>175,049</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>171,205</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>181,043&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=15.467>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=266 colspan=5><P style="margin:0pt; line-height:20pt; font-family:Arial; font-size:18pt"><B>HASBRO, INC.</B></P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=72 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=350 colspan=7><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>Supplemental Financial Data </B></P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=72 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=350 colspan=7><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>Major Segment Results and EBITDA</B></P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=72 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; font-family:Arial; font-size:8pt"><BR></P>
<P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">(Thousands of Dollars)</P>
</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=72 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=72 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4>&nbsp;</TD><TD valign=top width=234 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><U>Quarter Ended</U></P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=252 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><U>Year Ended</U></P>
</TD></TR>
<TR><TD valign=top width=188 colspan=4>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Dec. 30, 2007</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Dec. 31, 2006</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>% Change</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Dec. 30, 2007</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Dec. 31, </P>
<P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>2006</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>% Change</P>
</TD></TR>
<TR><TD valign=top width=188 colspan=4>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>----------</P>
</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B>Major Segment Results</B></P>
</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=266 colspan=5>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><U>North American Segment</U></P>
</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;External Net Revenues</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$ 766,826 </P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;712,554 </P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>8&nbsp;%</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$ 2,460,016 </P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$ 2,130,290 </P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>15&nbsp;%</P>
</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Operating Profit </P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>101,039 </P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>129,206 </P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-22&nbsp;%</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>318,737</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>275,959</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>16&nbsp;%</P>
</TD></TR>
<TR><TD valign=top width=32.667>&nbsp;</TD><TD valign=top width=33.6>&nbsp;</TD><TD valign=top width=67.333>&nbsp;</TD><TD valign=top width=54.4>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><U>International Segment</U></P>
</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;External Net Revenues</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>489,242</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>380,163</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>29&nbsp;%</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,278,589</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>959,319</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>33&nbsp;%</P>
</TD></TR>
<TR><TD valign=top width=188 colspan=4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Operating Profit </P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>90,027</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>64,107</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>40&nbsp;%</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>158,846</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>90,893</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>75&nbsp;%</P>
</TD></TR>
<TR><TD valign=top width=188 colspan=4>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90 colspan=2>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B>Reconciliation of EBITDA</B></P>
</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net Earnings </P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$ 133,732</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;108,282</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;333,003</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;230,055</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Interest Expense</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,501</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>7,425</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>34,618</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>27,521</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Income Taxes</P>
</TD><TD valign=bottom width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>53,168</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>62,267</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>129,379</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>111,419</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Depreciation</P>
</TD><TD valign=bottom width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>22,030</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>13,802</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>88,804</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>67,773</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Amortization</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,194</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>21,038</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>67,716</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>78,934</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>------------</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>------------</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>------------</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>------------</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA</P>
</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$ 235,625</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;212,814</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;653,520</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$ 515,702</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=188>&nbsp;</TD><TD valign=top width=84 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=======</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=======</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=======</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>=======</P>
</TD><TD valign=top width=6>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Arial; font-size:12pt"><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=380 colspan=7><P style="margin:0pt; line-height:20pt; font-family:Arial; font-size:18pt"><B>HASBRO, INC.</B></P>
</TD><TD valign=top width=24 colspan=3>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=404 colspan=10><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt"><B>Supplemental Financial Data </B></P>
</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=386 colspan=8><P style="margin:0pt; line-height:10pt; font-family:Arial; font-size:8pt">(Thousands of Dollars and Shares, Except Per Share Data)</P>
</TD><TD valign=top width=18 colspan=2>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=39.467>&nbsp;</TD><TD valign=top width=174 colspan=5>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=192 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B>Earnings Per Share</B></P>
</TD><TD valign=top width=174 colspan=5><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><U>2007</U></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=192 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><U>2006</U></P>
</TD></TR>
<TR><TD valign=top width=29.467>&nbsp;</TD><TD valign=top width=30.2>&nbsp;</TD><TD valign=top width=60.667>&nbsp;</TD><TD valign=top width=84.333>&nbsp;</TD><TD valign=top width=69.867>&nbsp;</TD><TD valign=top width=39.467>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>Quarter</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Basic</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Diluted</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Basic</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>Diluted</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>----------</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>-----------</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net earnings</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;133,732</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;133,732</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;108,282</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;108,282&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Effect of dilutive securities:</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Interest expense on contingent</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;convertible debentures due 2021</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,063</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,066&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;133,732</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;134,795</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;108,282</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;109,348&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Average shares outstanding</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>146,866</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>146,866</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>159,655</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>159,655&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Effect of dilutive securities:</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Contingent convertible debentures</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;due 2021</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>11,566</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>11,574&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Options and warrants</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>2,708</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>3,820&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Equivalent shares</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>146,866</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>161,140</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>159,655</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>175,049&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net earnings per share</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.91 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.84 </P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.68 </P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.62&nbsp; </P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>Full Year</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>---------------</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net earnings</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;333,003</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;333,003</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;230,055</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;230,055&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Effect of dilutive securities:</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Interest expense on contingent </P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;convertible debentures due 2021</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>4,248</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>4,262&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;333,003</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;337,251</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;230,055</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;234,317&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Average shares outstanding</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>156,054</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>156,054</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>167,100</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>167,100&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Effect of dilutive securities:</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Contingent convertible debentures</P>
</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial; font-size:11pt" align=right>&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;due 2021</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>11,568</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>11,574&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Options and warrants</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>3,583</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>2,369&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>--------------&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Equivalent shares</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>156,054</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>171,205</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>167,100</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>181,043&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=314 colspan=6><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Net earnings per share</P>
</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 </P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.97 </P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38 </P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29&nbsp; </P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>========&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=314 colspan=6>&nbsp;</TD><TD valign=top width=78 colspan=3>&nbsp;</TD><TD valign=top width=12>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
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