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LEAPFROG ENTERPRISES INC. Emeryville, California Toy Maker Is Upbeat On Holiday Prospects.(A)

Investor's Business Daily

| December 03, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: KIRK SHINKLE

It's anybody's guess how much consumers will spend this holiday season, and that keeps toy company executives up at night.

One who sounds at least a little optimistic is Tom Kalinske, chairman of educational toy maker LeapFrog Enterprises. He says parents won't play Scrooge to their kid's Tiny Tim, despite the weak economy.

"I have six kids, and I'll give up a lot of things in difficult economic times," he said. "But I'm not going to give up making sure my kids have an enjoyable holiday experience."

LeapFrog's core product, LeapPad, has proved to be an enduring draw. Kids insert LeapPad books into a console and access interactive features using a pen that houses a small antenna. The console responds by reading words or guiding kids through math exercises.

LeapPad's books and consoles continue to place among the top 10 in U.S. toy sales. In September, the console and accompanying books held the No. 6 and 7 spots in sales, respectively, according to industry researcher NPDFunworld.

LeapPad hardware and software will form the core of LeapFrog's holiday sales. The firm is staying true to its fan base of 4- to 7-year-olds. That base continues to outpace growth of the overall toy industry.

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