Hasbro and Lucas Extend Star Wars License Through 2018.

Business/Entertainment Editors

PAWTUCKET, R.I.--(BUSINESS WIRE)--Jan. 30, 2003

Hasbro, Inc. (NYSE: HAS) announced today that its license with Lucas Licensing Ltd., for the manufacture and distribution of Star Wars toys and games, has been extended for an additional ten years.

"We are delighted to extend our long-term relationship with Lucas," said Alan G. Hassenfeld, Hasbro's Chairman and Chief Executive Officer. "This extension provides us with a real economic benefit by allowing us to continue to build and expand on the success of this franchise property for many years to come."

"Lucas and Hasbro have always viewed Star Wars as a long-term proposition. This extension truly gives us the opportunity to plan far into the future for the benefit of all the fans who have followed the saga for the last 27 years," said Howard Roffman, President of Lucas Licensing. "Hasbro is unmatched in the boys action arena, and we are confident that their future work on Star Wars toys and games will continue the tradition of excellence they have established."

Under the terms of the extension, the agreement is expected to run through 2018. The minimum guarantee payable to Lucas has also been reduced by $85 million.

"Based on the restructuring of these agreements, we do not expect any current or future impairment charge related to Star Wars," said David Hargreaves, Hasbro's Chief Financial Officer. "Lucas has shown they are a true partner of Hasbro."