NEW YORK--(BUSINESS WIRE)--Feb. 8, 1999--

COMMTech Gives Kids Innovative Ways to Enjoy Star Wars Episode I

Hasbro, Inc. today introduced an exclusive and innovative toy technology that brings a whole new type of play to the action figure toy category through its Star Wars basic action figures.

The technology, called COMMTech (Communication Output Memory Module), is a patented microchip system (licensed from Innovision, a UK company) that enables Hasbro's new action figures from Star Wars: Episode I to ``speak'' and re-create key scenes from the movie.

The new toys, due at retail in May to coincide with the film's release, pair the basic, four-inch Star Wars action figures from the new movie with digital audio COMMTech chips. To play, the child stands each figure on its COMMTech chip base, then scans the chip across a COMMTech Reader unit (sold separately). The figures then ``speak'' with key character movie dialogue and many of them can respond to each other as they do in the movie.

``COMMTech is an innovation that truly brings the excitement of the Star Wars experience home, and gives children a new way to play with action figures,'' said Alan Hassenfeld, Hasbro's Chairman and CEO. ``We're giving both kids and collectors a way to recreate the Star Wars fantasy, through an innovative, interactive technology.''

The COMMTech technology offers many ways to play. A child can simply scan one chip at a time to hear the character's movie phrases. The COMMTech reader has built in light saber and blaster sound effects so a child can re-create the movie's exciting battle scenes. In addition, the COMMTech reader can scan and store up to four different characters at a time so kids can get all of the great COMMTech play at the push of a button.

``Kids and fans have come to expect innovation from Hasbro's Star Wars toys ever since we started the four-inch action figure trend 21 years ago with our Star Wars figures,'' said Hassenfeld. ``Kids love electronic play and we see a tremendous number of new applications for COMMTech down the line, with each geared toward greater realism within action figure play,'' said Hassenfeld.

COMMTech chips are collectible items in their own right. Each clear, dog-tag-sized chip features a holographic image of its movie character, acts as a stand for its action figure, and can be worn on a ball-chain that comes with the COMMTech Reader.

``We're calling COMMTech a kind of a digital trading card for the next Millennium, because we think it also has genuine value to collectors,'' said Hassenfeld.

COMMTech will be available for all of Hasbro's Star Wars: Episode I basic Figures, starting in May at major toy retailers. New figure assortments will become available throughout the year. Recommended for ages four and up, COMMTech-equipped action figures and the COMMTech reader units will be sold separately.

The original Star Wars trilogy told the story of Luke Skywalker, a young farm boy who became a hero in the struggle to overthrow an evil empire and had to confront one of the Empire's staunchest henchmen, his own father, Darth Vader. The new Star Wars trilogy will go back in time a full generation to reveal the origins of Darth Vader. In Episode I, Darth Vader is a hopeful, nine-year-old boy named Anakin Skywalker and Obi-Wan Kenobi is a brash, young Jedi Knight. This first chapter in the Star Wars saga follows Anakin's journey as he pursues his dreams and confronts his deepest fears in the midst of a galaxy in turmoil.

Episode I was shot in England during the summer of 1997 and is currently in post-production at Skywalker Ranch and Industrial Light & Magic in Marin County, California. The film was written and directed by George Lucas, produced by Rick McCallum and stars Liam Neeson, Ewan McGregor, Natalie Portman, and Jake Lloyd. Additional cast members include Ian McDiarmid, Samuel L. Jackson, Terrence Stamp and Pernilla August. Episode I is scheduled to be released in the United States on May 21, 1999.

Lucas Licensing Ltd. manages all the domestic and international merchandising activities of the Star Wars and Indiana Jones properties. Star Wars is the most successful film-based merchandising program in history. The Star Wars licensing program is renowned for its attention to product detail and quality in the fields of publishing, toys, games, collectibles, apparel and home furnishings.

Lucas Licensing is one of five companies in the Lucas group which include Lucasfilm Ltd., LucasArts Entertainment Company LLC, Lucas Digital Ltd. LLC, and Lucas Learning Ltd. Lucasfilm is one of the leading film and entertainment companies in the world. Lucasfilm's businesses include George Lucas' film and television production and distribution activities as well as the business activities of the THX Group. LucasArts is a leading international developer and publisher of interactive entertainment software. Lucas Digital, which consists of Industrial Light & Magic (ILM) and Skywalker Sound, provides visual effects and audio post-production services to the entertainment industry. Lucas Learning strives to create an ``uncommon learning'' experience by offering engaging interactive software products that provide learning opportunities through exploration and discovery.

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(tm), Hasbro Interactive(tm), and Galoob® products, provide children and families with the highest quality and most recognizable toys and games in the world.

     Bratskeir & Co., New York
     Mike Rosen/Lauren Kuschner
     212/679-2233