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K'NEX AND TOYS "R" US BUILD SCHOOL PRIDE ACROSS AMERICA WITH THE ULTIMATE CLASSROOM CHALLENGE

HATFIELD, PA - July 7, 2004 - K'NEX Industries, one of the world's leading manufacturers of children's construction sets, and Toys "R" Us have announced the creation of The "Building School Pride" program. The goal of the program, to continue annually, is to provide the students a community stage to display their project at their local Toys "R" Us stores.

More than 400 classrooms around the country have been invited to participate in this one-of-a-kind opportunity. This year's project kicks off in September 2004, as kids in classrooms from Maine to California will build the new K'NEX Ultimate Big Air Ball Tower. This challenging, hands-on activity brings to life the math, science and technology concepts and lessons that fourth, fifth and sixth graders will study in class.

Teachers began signing up to participate in the "Building School Pride" program in May. Bill Mason, a teacher at St. Jane Frances School in Riviera Beach, Maryland, says "Wow! What a program. This project would be an awesome way to start the new school year with my 5th and 6th graders."

Some schools are so excited that multiple classrooms will simultaneously build the Ultimate Big Air Ball Towers. Harshman Middle School in Indianapolis, IN has seven classrooms signed up and ready! Only one class will be chosen for each participating store, and kits are awarded on a first come, first served basis.

At the beginning of September, Building School Pride kits, including the Ultimate Big Air Ball Tower set, will be sent to participating schools across the country. Once the project is complete, each class will deliver and present their Ultimate Big Air Ball Tower to their community at their local Toys "R" Us store as part of the birthday festivities for Toys "R" Us spokesgiraffe, Geoffrey, on October 2, 2004! A specially built K'NEX display, complete with an area to post the school's name and signatures of all the children who helped build the model, will be featured in each Toys "R" Us store. The model will be on display throughout the holiday season.

About the Ultimate Big Air Ball Tower
Standing over five feet tall, the ball tower a real working contraption centered around a see-through air lift tube, which propels balls to the tower's top. They then travel through the unpredictable obstacles the builders have created. When a ball finds its way back to the bottom, another blast of air brings it back to the top to start the fun all over again.

One of the four balls holds Big Air Boz - an extreme skateboarder ready for the ride of his life! After the Ultimate Big Air Ball Tower is complete, kids will have a blast watching Boz avoid a wipeout as he plunges down the obstacle filled paths, encountering a MegaBounce Trampoline platform, Super Spin Wheel, Pivoting Ball Arm, and plenty of bright orange tunnels before making a perfect launch into the Bottomless Basket.

The Ultimate Big Air Ball Tower featuring Big Air Boz, for kids ages 10 years and older, will be available exclusively at Toys "R" Us this September for an approximate retail value of $99.99.

About K'NEX Industries
Founded in 1992, K'NEX Industries was established to make and sell what has become one of the world's leading construction systems for children. K'NEX is also the U.S. licensee for the well-known and loved Lincoln Logs Brand. Winner of over 150 international awards and recognitions, K'NEX seeks to build young minds with its exciting product line and critically acclaimed K'NEX Education program. For more information, consumers can visit www.knex.com.

About TOYS "R" US
Toys "R" Us, one of the world's leading retailers of toys, baby products and children's apparel, operates toy stores in the United States; international toy stores, including franchised and licensed stores, Babies "R" Us stores and Geoffrey stores. Toys "R" Us, Inc. currently sells merchandise through 1,472 stores worldwide: 681 toy stores in the United States; 581 international toy stores, including licensed and franchise stores; 200 Babies "R" Us stores, and 4 Geoffrey stores. Toys "R" Us, Inc. also sells merchandise through its Internet sites at www.toysrus.com, www.babiesrus.com, www.imaginarium.com and www.sportsrus.com. The company is in the process of closing its 8 remaining freestanding Kids "R" Us stores.

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Contact:
Melissa Fogarty/Beth Mosher
LITZKY PUBLIC RELATIONS
(201) 222-9118
email: mfogarty@litzkypr.com
email: bmosher@litzkypr.com

About K’NEX Brands

Founded in 1992, K’NEX Brands, the world’s most innovative construction toy company, was established to make and sell what has become one of the world’s leading integrated construction systems for children. Winner of over 200 international awards and recognitions, K’NEX is America’s building toy company focused on Building Worlds Kids Love, and encourages youngsters to “imagine, build and play.”  For more information, please visit www.knex.com.