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Contact: Ann Morris/Gayle Glickman

Healy Communications, Inc.

Story Reader® Poised for Continued Success

With Two New Products for 2006

Nation’s Best-Selling Preschool Book Line

Expands into Video, Infant/Toddler Markets

On The Heels of Strong Holiday 2005 Sales

Lincolnwood, Ill. – May 2, 2006 – Publications International, Ltd. (PI) announced that the success of its popular Story Reader®, the first-ever portable electronic storybook reader for kids aged three to eight, has prompted the company to introduce two new Story Reader products combining books and technology at affordable prices. Story Reader® Video Plus™ takes reading and learning games to a new level, offering kids aged three to eight all the features of the classic Story Reader combined with the appeal and entertainment value of video. Also new for 2006, My First Story Reader™ is a smaller, re-designed version of Story Reader designed for kids aged six months to three years, which is one of the fastest growing segments of the industry.

Story Reader enjoyed strong holiday sales in 2005, further solidifying its position as the number-one preschool book line in the country. The company reports that two million base units and nine million book titles have been sold since Story Reader’s introduction just three years ago. In addition to the strength of the product itself, PI also attributes Story Reader’s success in 2005 in part to the company’s first-ever national consumer television advertising campaign supporting the brand.

“It’s a rarity in the toy and publishing industries to have a product with such strong year-to-year sales,” noted Kerry Cunnion, Executive Vice President for Publications International, Ltd. “We believe the new Story Reader products will be as successful as the first in terms of appealing to consumers seeking strong value-oriented, educational and entertaining opportunities for their kids.”

NEW FOR 2006

Launching in fall 2006, Story Reader Video Plus combines elements from three popular play patterns into a single, powerful product platform:

1) A stand-alone Story Reader: Story Reader can be used without the TV, with the base unit narrating a story aloud as the child turns the pages.

2) Animated Story Mode: Plug in Story Reader Video Plus, and pages from each story come alive on the TV screen with music and sound effects. Large-font words are highlighted as they are spoken, enhancing word recognition skills. Kids can control the animation by turning the pages in the book.

3) Learning Game Mode: Kids can access five different learning games, including a platform game with three levels and two stand-alone activity games. Activities include matching and fill-in-the-blank games and are based on letters, numbers, memory, collection and concentration. Another mode on the game page features an option to have a story read aloud without having to turn the pages. The game menu and action appear on the TV screen, and the custom-designed game controller is perfectly sized for little hands.

Featuring easy-to-use plug-and-play technology, the unit plugs into a TV’s video input with jacks and cords that are color-coded to be kid-friendly. No special programming is required. Similar in size to the original Story Reader, Story Reader Video Plus also features a clamshell-style design with a carrying handle for easy portability, plus an internal compartment for storage of the game controller and TV cords.

“Story Reader Video Plus takes the Story Reader franchise to the next level by combining the joy of reading with the appeal of video technology, at a price point that breaks down barriers for many consumers,” said Cunnion. “This is one of many affordable, innovative PI products that draw children into contemporary media experiences in which reading is integrally involved.”

Story Reader Video Plus will be supported by a multi-million dollar television advertising campaign in the fourth quarter. The product will sell for the value price of around $34.99, with refill titles available for around $12.99. The base unit comes with a 21-page “Alphabet Adventure” book with both a matching game and a fill-in-the-blank game featuring young super-hero characters Alpha Boy and Letter Girl, who use their word skills to recover the alphabet that has been stolen by a spider named Ms. Speller. Refill titles will feature Dora the Explorer, Elmo, Scooby Doo and Thomas the Tank Engine.

Available now at retailers nationwide, My First Story Reader is a unique product that brings popular stories and characters to life for the youngest pre-readers. As with Story Reader, a narrator reads aloud as each page is turned, while My First Story Reader adds sound effects and music. Each 12-page, full-color book features beautiful graphics and illustrations and is printed on durable board stock.

My First Story Reader features a volume control and offers two distinct play patterns, which are selected with a toggle switch on the right-hand side of the unit. When the child pushes the top of the switch, My First Story Reader narrates a portion of the story and prompts the youngster to join in the fun. If the child pushes the bottom of the switch, My

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First Story Reader asks the child questions about the images featured on each page.

To respond, the child selects one of three large, brightly colored buttons beneath each page that correspond with shapes and colors that answer the questions. When the child makes a correct selection, the button lights up and the unit makes a sound indicating success. For an incorrect answer, My First Story Reader prompts the child to try again. A spring always brings the toggle switch back to a neutral position and each page automatically defaults to “read” mode as the pages are turned. On the final two-page spread, My First Story Reader sings a rhyming melody and encourages the youngster to sing along.

The lightweight, portable design of My First Story Reader features a clamshell-style unit with an easy-grip handle. Designed for safe use by little hands, the product features a break-away hinge that won’t pinch little fingers.

My First Story Reader sells for around $19.99 and comes packaged with three interchangeable Baby Einstein rhyming story/songbooks: “Discover Colors,” “Discover Music” and “Discover the Sky.” Two additional three-book refill packages are also available. The Sesame Street collection includes “Snack Day,” “Silly Sounds” and “Be Happy,” and the Winnie the Pooh collection includes “Night So Bright,” “Daydreamy Pooh” and “Rainy, Sunny, Funny Days.” These three-title packs are also available at major retailers, and sell for about $16 each. A new three-book refill package featuring Thomas the Tank Engine will be available in fall 2006.

Story Reader: A Platform for Success

Often called “the next best thing to a parent’s lap,” Story Reader has earned 17 industry awards since its debut in September 2003. The Story Reader line now has more than 60 book titles featuring popular licensed characters. The average Story Reader household now owns five Story Reader titles. At nearly 5:1, Story Reader’s high book-to-unit ratio is well above the industry standard of 3:1, and is also an exciting indicator of growing consumer loyalty to the brand.

The Story Reader base unit, which comes packaged with a book based on the Disney/Pixar movie, “Finding Nemo,” is widely available for around $20. For storage, car travel and mobility, PI offers Story Reader accessories such as a backpack, shoulder bag and a headphones and AC adaptor set, each selling for around $9.99. For more information, visit www.storyreader.com.

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About Publications International, Ltd.

Publications International, Ltd. (PI), a privately held company based in Lincolnwood, Illinois, is the world’s largest publisher of children’s products that combine traditional printed books with electronic features that deliver interactivity, learning and entertainment value. Since 1967, PI has provided consumers and retail partners with products defined by creativity, quality and value, operating with the mission to “get as many books into the hands of as many children as possible.” PI introduces hundreds of new children’s titles annually and sells more than 20 million traditional and electronic soundbooks each year. The company is actively involved in philanthropic literacy efforts, donating books to children’s charities and schools to stimulate the love of reading in young people. In addition to its rapidly growing children’s book division, PI also publishes widely popular cookbooks, the New Seasons line of albums and journals, and a wide variety of general and specialty titles. For more information, please visit www.pilbooks.com.