### Company Press Release

## Hasbro Reports Record First Quarter Revenues Earnings Increase Significantly

PAWTUCKET, R.I.--(BUSINESS WIRE)--April 15, 1999--Hasbro, Inc. (ASE:HAS - news) today reported record first quarter revenues and a substantial increase in earnings. The Company's outlook for 1999 remains very positive.

Worldwide revenues increased approximately 38% to $668.4 million, compared to $482.8 million a year ago. Revenue growth was primarily led by Tiger Electronics, which was acquired in April 1998, and by increased sales of computer-based games from Hasbro Interactive. Net earnings increased approximately 77% to $13.8 million, compared to $7.8 million in the first quarter of 1998. Diluted earnings per share increased 75% to $0.07 compared to $0.04 a year ago, adjusted for the recent three-for-two stock split. The Company also reported record first quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $75.8 million, almost double the year-ago EBITDA of $39.7 million.

``I am pleased to report record first quarter revenues,'' said Alan G. Hassenfeld, Chairman and Chief Executive Officer. ``Our earnings growth is especially gratifying in this seasonally low-revenue quarter, when we continue to incur fixed infrastructure costs including acquisition carrying costs. In addition, our substantial cash flow generation underscores our financial strength,'' Hassenfeld noted. ``Tiger Electronics' interactive FURBY pets continue to be a smash hit, and we have just introduced new fur patterns and FURBY BUDDIES. Hasbro Interactive again achieved significant double-digit sales growth. Sales of the TELETUBBIES line, launched last May, are brisk. In our powerful Boys category, sales continue increasing in the SUPER SOAKER line of water toys and TRANSFORMERS/BEAST WARS, including the recently introduced ANIMORPHS. Our popular WINNER'S CIRCLE line almost tripled from a year ago, reflecting the growing popularity of NASCAR,'' Hassenfeld added.

``We continue to add value for our shareholders with a three-for-two stock split effective March 15th and a 13% increase in the split-adjusted quarterly dividend rate to $0.06 per share in May,'' Hassenfeld added. ``Also in the first quarter, we invested approximately $45 million to repurchase 1.7 million shares. These actions signal our confidence in Hasbro's future.''

``In the second quarter, we look forward to the May 19th release of THE PHANTOM MENACE, the awesome first episode of the new STAR WARS trilogy. Hasbro and the recently-acquired Galoob are teamed up with the global POWER OF THE FORCE in the largest coordinated rollout of product ever undertaken in our industry. FURBY in five foreign languages will begin shipping soon, and we are increasing production of the incredibly popular POKEMON line. We are also on track in realizing planned incremental cost savings from the Global Integration and Profit Enhancement Program. As we demonstrated in February during our most successful Toy Fair ever, we are firing on all cylinders and we look forward to a great year in 1999, as we continue to grow into the next millennium,'' Hassenfeld concluded.

Hasbro is a worldwide leader in the design, manufacture and marketing of toys, games, interactive software, puzzles and infant products. Both internationally and in the U.S., its PLAYSKOOL, KENNER, TONKA, ODDZON, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER, HASBRO INTERACTIVE, and GALOOB products provide children and families with the highest quality and most recognizable toys and games in the world.

Certain statements contained in this release contain ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. Specific factors that might cause such a difference include, but are not limited to, the timely manufacture and shipping by the Company of new and continuing products and their acceptance by customers and consumers in a competitive product environment; economic conditions, currency fluctuations and government regulation and other actions in the various markets in which the Company operates throughout the world; the inventory policies of retailers, including the continuing trend of increased concentration of the Company's revenues in the second half and fourth quarter of the year, together with increased reliance by retailers on quick response inventory management techniques, which increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight and compressed shipping schedules; the impact of competition on revenues, margins and other aspects of the Company's business; third party actions or approvals that could delay, modify or increase the cost of implementation of, the Company's Global Integration and Profit Enhancement program; the Company's incurring higher than expected costs to achieve, or not achieving, ``Year 2000'' readiness with respect to the Company's systems, or the Company's customers, vendors or service providers failing to achieve such readiness; and the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.

EBITDA (earnings before interest, taxes, depreciation and amortization) represents operating profit plus depreciation and all amortization. EBITDA is not adjusted for all noncash expenses or for working capital, capital expenditures or other investment requirements and, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. Thus, EBITDA should not be considered in isolation or as a substitute for net earnings or cash provided by operating activities, each prepared in accordance with generally accepted accounting principles, when measuring Hasbro's profitability or liquidity as more fully discussed in the Company's financial statements and securities filings.

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    HASBRO, INC.
    CONSOLIDATED STATEMENTS OF EARNINGS

                                                      Quarter Ended
    (Thousands of Dollars and                     March 28,     March 29,
     Shares Except Per Share Data)                  1999           1998

    Net Revenues                                 $ 668,398      $ 482,820
    Cost of Sales                                  256,517        204,312

    Gross Profit                                   411,881        278,508
    Amortization                                    25,926         14,143
    Royalties, Research
     and Development                               111,942         67,336
    Advertising                                     81,084         55,757
    Selling, Distribution
     and Administration                            163,281        135,249

    Operating Profit                                29,648          6,023
    Interest Expense                                11,973          2,312
    Other (Income), Net                             (2,318)        (8,097)

    Earnings Before Income Taxes                    19,993         11,808
    Income Taxes                                     6,198          4,015

    Net Earnings                                 $  13,795      $   7,793

    Per Common Share
         Net Earnings
             Basic                               $     .07      $     .04
             Diluted                             $     .07      $     .04
         Cash Dividends Declared                 $     .06      $     .05

    Weighted Average Number of Shares
         Basic                                     195,898        199,665
         Diluted                                   204,621        207,313

    HASBRO, INC.
    CONSOLIDATED CONDENSED BALANCE SHEETS

                                                     March 28,   March 29,
    (Thousands of Dollars)                             1999         1998

              ASSETS

    Cash and Temporary Investments                 $  217,276   $  430,601
    Accounts Receivable, Net                          518,183      362,328
    Inventories                                       353,842      269,097
    Other                                             347,124      205,209

    Total Current Assets                            1,436,425    1,267,235
    Property, Plant and Equipment, Net                319,908      271,607
    Other Assets                                    1,650,910    1,053,124

    Total Assets                                   $3,407,243   $2,591,966

             LIABILITIES AND SHAREHOLDERS' EQUITY

    Short-term Borrowings                          $  295,548   $  112,465
    Payables and Accrued Liabilities                  717,046      617,015

    Total Current Liabilities                       1,012,594      729,480
    Long-term Debt                                    410,146         --
    Deferred Liabilities                               75,723       59,771

    Total Liabilities                               1,498,463      789,251

    Total Shareholders' Equity                      1,908,780    1,802,715

    Total Liabilities and Shareholders' Equity     $3,407,243   $2,591,966

Contact:

         Hasbro, Inc.
         John T. O'Neill
         401-727-5600
               or
         Renita E. O'Connell
         401-727-5401

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