-- aided and abetted Bryant's breach of his duty of loyalty;

-- aided and abetted Bryant's breach of the fiduciary duties he owed to Mattel; and

-- converted Mattel property for their own use.

"This is a victory for all the hard-working people at Mattel who come together to create many of the most beloved toys for children. It is also a victory for all those who believe in fair play," said Robert A. Eckert, chairman and chief executive officer of Mattel, Inc.

He went on to say that "Mattel is home to many of the world's most talented toy designers - they are the creative engine of the company. We want to ensure that Mattel's Design Center is a place where concepts are built upon and enhanced by the entire team - not stolen for personal gain and to assist a competitor."

Under an Inventions Agreement with Mattel, Bryant assigned to Mattel all ownership rights of anything he created during his Mattel employment. Judge Stephen Larson, the Federal judge presiding over the case, previously had ruled that the Inventions Agreement is enforceable, and it applies to any Bratz-related "inventions" (including any designs, improvements, ideas, concepts, and copyrightable subject matter) that Bryant created during the period of his employment with Mattel. In addition, the Court ruled, as a matter of law, that Bryant breached his duty of loyalty to Mattel by "entering into a contract with Mattel's competitor, while still employed by Mattel, to produce a line of fashion dolls to be marketed in direct competition with Mattel's products."

In the next phase of the trial, due to begin shortly, the same jury will be asked to determine if Bratz dolls or related products infringe on the Bratz drawings and sculpts now owned by Mattel and whether certain procedural defenses asserted by MGA have merit. If the jury finds that the drawings do infringe, it will be asked to determine the amount of damages to be awarded to Mattel. On May 19, 2008, Bryant reached a confidential settlement with Mattel and is no longer a defendant in the litigation.

Mattel was represented by Quinn Emanuel Urquhart Oliver & Hedges, LLP, a 400-strong lawyer business litigation firm - the largest in the United States devoted solely to business litigation. The litigation team was lead by John Quinn, founder and managing partner at the firm, and partners Bill Price and Mike Zeller.

The trial of Mattel, Inc. v MGA Entertainment, Inc. began on May 27th, 2008 in United States District Court for the Central District of California in Riverside, Calif., and is being presided over by the Honorable Stephen G. Larson, United States District Judge.

About Mattel

Mattel, Inc., (NYSE:MAT) (www.mattel.com) is the worldwide leader in the design, manufacture and marketing of toys and family products. The Mattel family is comprised of such best-selling brands as Barbie(R), the most popular fashion doll ever introduced, Hot Wheels(R), Matchbox(R), American Girl(R), Radica(R) and Tyco(R) R/C, as well as Fisher-Price(R) brands, including Little People(R), Power Wheels(R) and a wide array of entertainment-inspired toy lines. Mattel is recognized as one of 2008's "100 Best Companies to Work For" by FORTUNE Magazine. With worldwide headquarters in El Segundo, Calif., Mattel employs more than 30,000 people in 43 countries and territories and sells products in more than 150 nations. Mattel's vision is to be the world's premier toy brands -- today and tomorrow.

MAT-Corp

SOURCE: Mattel, Inc.

Mattel, Inc.
Lisa Marie Bongiovanni, 310-252-3524
LisaMarie.Bongiovanni@mattel.com

The decision put Mattel in commanding position going into the damages phase of the trial, in which the jury will determine if the Bratz doll infringes on the drawings Mattel now owns and whether MGA owes Mattel damages as a result.

Other than four drawings that Bryant testified he made in a notebook while on an eight-month hiatus from Mattel in 1998, privately held MGA lost the rights to all drawings and sculpts of the Bratz.

The verdict could be the start of a reversal of fortune for MGA, which grew Bratz from drawings to a multibillion-dollar franchise in seven years as Mattel watched market share for its venerable Barbie line melt away. Barbie's sales troubles have extended into the first quarter of 2008, domestic sales fell 12 percent, while worldwide sales were flat compared with a year earlier.

Shares of Mattel rose 58 cents to close at $18.28 Thursday.

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The second phase of the trial will determine monetary damages for the contract breach that resulted in MGA producing the doll with the bare midriff that industry analysts say reaps as much as $2 billion in annual sales.

"This important principle has been confirmed by the jury. What MGA did was wrong," Mattel's Chief Executive Officer Robert Eckert said in a statement.

The two parties could reach an out-of-court settlement but Larian rejected that idea, the Times reported.

"I need to sleep good at night," Larian said. "I can't be in bed with them."

Bryant, who has made $30 million in royalties from Bratz sales, settled out of court with Mattel in May for an undisclosed amount, the Times reported.

www.upi.com

"Most importantly, the verdict issued today does NOT entitle Mattel to any rights whatsoever of Bratz," said Nolan, lead trial lawyer for MGA. "The verdict merely determined that certain drawings by Carter Bryant were created while he worked at Mattel."

As the scope of Phase 1(A) was narrowly limited, MGA will now be given an opportunity in Phase 1(B) to present to the same jury all of its defenses to Mattel's allegations. The issue in Phase 1(B) is to determine whether MGA's Bratz(TM) dolls infringe any copyrights Mattel may own of Carter Bryant's drawings.

"We at MGA remain confident that we will ultimately be successful at the conclusion of the 1(B) trial and/or before the Ninth Circuit Court of Appeal. This is because it is undisputed that MGA - not Carter Bryant - independently created the Bratz dolls," said Isaac Larian, CEO of MGA Entertainment. "Carter Bryant did not have anything to do with the many Bratz-related products we created, such as Bratz Babyz, Lil' Bratz and Bratz Kidz to name a few," Larian added.

MGA points out that Mattel is only suing MGA regarding the "first generation" of Bratz(TM) dolls that were issued in 2001. "Under no circumstance will Mattel be able to assert ownership of the Bratz franchise - which will always belong to MGA," Larian said. "Our customers, retailers, vendors, and suppliers can take comfort in knowing that there will be no disruption in MGA's manufacturing and sales of Bratz dolls or any other products," Larian said.

MGA contends that Mattel is trying to hijack what the family-owned company created from scratch over the past seven years of hard work. They believe that Mattel waited from 2001, when the Bratz(TM) line of dolls was introduced into the marketplace, until July 2007 to come after them in court - years after it admitted in internal marketing documents that it was "out thought and out executed" by MGA. MGA further contends that Mattel has used litigation as a "business strategy" against MGA. MGA believes Mattel, having failed to compete in the marketplace, has resorted to litigation as a business strategy - with the intention to "litigate MGA to death," as one former Mattel executive testified.

Nolan further stated: "Please wait for part 1b of this Phase of the trial to be completed in a few weeks -- we are confident that the jury or court will vindicate MGA and Isaac Larian of all of Mattel's claims, when they hear the 'rest of the story.'"

MGA has received a great amount of support throughout the duration of this trial. "I am thankful to all of MGA's employees, vendors, and customers for their incredible daily support while we fight Mattel for what's rightfully ours," said Larian.

SOURCE: MGA Entertainment

Silver Public Relations
David Silver, 213-488-6161
info@silverpr.com