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K'NEX PARTNERS WITH eToys FOR THE LAUNCH OF THE HIGHLY ANTICIPATED CyberK'NEX LINE!

Partnership Kicks Off Two National Promotions

Hatfield, PA, July 20, 2000 – K'NEX Industries, an award-winning construction toy manufacturer, has partnered with eToys, a leading Internet retailer of children's products, for the launch of the company's new CyberK'NEX line of interactive building sets. K'NEX and eToys will launch the "BE ONE OF THE FIRST TO CYBERIZE WITH eToys!" national program, running July 1 through August 15, in which every consumer who reserves and purchases a CyberK'NEX set will receive a FREE CyberK'NEX T-shirt.

Incorporating a proprietary technology, CyberK'NEX is the only construction activity with which kids can create models that come to life -- with realism, personality and attitude. Kids can build Cyber life-forms with names like "Mectron," "Brat Boy" and "Flash" who talk and move with real-life personalities, react to outside stimuli and even interface with the web.

"We are excited to partner with eToys to provide their customers this great opportunity to be among the first to purchase CyberK'NEX and experience the interactive building revolution," said Chris Campbell, Vice President of Marketing at K'NEX.

The eToys promotion also coincides with K'NEX's "Spread the Cyber Word" campaign that runs through August 14. Throughout this promotion, K'NEX Kids Club members receive e-mail invitations alerting them to the launch of CyberK'NEX. Kids are directed to log onto the pre-launch CyberK'NEX website (www.cyberknex.com) where they can preview the new interactive building system and find CyberK'NEX Digital Postcards. Kids are invited to "Spread the Word" about CyberK'NEX by sending postcards to friends, and K'NEX will award points to those who invite the most kids to become K'NEX Club members. Kids can redeem these points for great prizes including CyberK'NEX Cyber key chains, free CyberK'NEX sets or the grand prize of a $300 gift certificate from eToys.

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Founded in 1992, K'NEX Industries was formally established to make and sell what has become one of the world's leading integrated construction systems for children. 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.

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.