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K'NEX BUILDS LINCOLN LOGS BRAND WITH NEW THEME

Hatfield, PA - Following a year of significantly increased sales and distribution of its Lincoln Logs business, K'NEX Industries will expand the classic log building system with an all new castle-themed line up and a new special edition collector set. The Lincoln Logs Castle Kingdom line introduces a fun new interactive play experience to children ages 3 to 7. The Lincoln Logs all wood Anniversary Edition delivers the warmth and memories of the original sets from the '20s and '30s.

According to Chris Campbell, Vice President Marketing for K'NEX, there is a true back to basics movement that is driving society to purchase classic toys. "In '99, we introduced Lincoln Logs play-sets like Frontier Explorer and sold out nationwide — selling 3 times more product than expected," he said. "We plan to build on that success in 2000."

Invented in 1916 by the son of famous American architect Frank Lloyd Wright, Lincoln Logs have brought the excitement of building into the homes and imaginations of children for over 80 years.

The new Castle Kingdom theme features a whole new way to build with Lincoln Logs. This new vertical building system allows traditional Lincoln Logs to create new shapes like round towers. The three Castle Kingdom Lincoln Logs sets will be available at different price points:

King's Castle - (Suggested Retail Price, $29.99) - Build this fantastic castle to create the centerpiece of the Castle Kingdom featuring several options for imaginative play. Help the two knights guard the castle using its two working catapults, two trapdoors to surprise intruders, and a drawbridge. Kids can build one large castle to defend against intruders or two separate castles to compete with each other for real action!

Knight's Fortress - (Suggested Retail Price, $16.99) - Build a complete fortress, and help the 2 knights work the catapult and drawbridge, or surprise them with the working trapdoor! The fortress can also be opened to create a larger play-set environment.

Prince's Tower - (Suggested Retail Price, $9.99) - Build a lookout post for the Castle Kingdom, and help the knight watch over the land. The Prince's Tower includes a trapdoor for added play value and the knight to stand guard.

In response to the comeback of wooden toys, K'NEX will also introduce a special Anniversary Edition Lincoln Logs. In addition to bringing back the original color palette, all parts in this nostalgic set will be made of wood, including roof slats, eaves, and chimneys.

"Society is tapping into retro and nostalgia," added Campbell. "Lincoln Logs has even more of a growth potential for us, especially since parents and grandparents played with them as children and therefore have a huge comfort level with the toy."

The new Lincoln Logs sets will be available nationally in Fall 2000 and are recommended for children ages 3 and up. For more information, consumers can visit www.knex.com or call 1-800-822-5639.

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Lincoln Logs® is manufactured and distributed by K'NEX Industries under license from Hasbro, Inc. As manufacturers and marketers of the creative K'NEX building system, K'NEX Industries has produced a revolution in the construction toy category. Since its introduction in 1992, K'NEX has become an important international marketer with distribution in over 44 countries. Winner of over 150 awards and recognitions, K'NEX is the official building system of the millennium.

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.