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Carter's Enters Licensing Agreement with Kids II to Introduce Innovative Toy Programs

MORROW, Ga. – Carter's, the number-one brand for children's apparel from newborn through age six, is offering a complete toy program that will be created and marketed by Kids II, Inc. Kids II is a Georgia-based company well-known for its high-quality, developmentally appropriate toys for infants and children. The toys will be marketed under the Carter's brand and will be themed around Carter's Just One Year and Celebrating Imagination programs.

Carter's thoroughly researched the market for young children's toys and held extensive focus groups with mothers to learn more about what they want for their children. According to their research, imagination is best nurtured and developed through unstructured, simple play. Carter's also concluded that mothers see a void in the marketplace for toys that revolve around the basics of playing and they seek a return to simpler toys that stimulate creativity and imagination. These findings were an important catalyst in the development of Carter's Celebrating Imagination brand theme.

In keeping with mothers' desires, Kids II has designed a line of toys that stimulate a child's imagination and creativity, and that encourage the senses of wonder and discovery. “This is an exciting opportunity for Kids II and Carter's to grow and expand,” said Ryan Gunnigle, President of Kids II. “Our mutual standards of quality and excellence will help us to be successful in providing classic toys that parents and children will love.”

Kids II is best known for its use of infant development research findings to create a line of black, white, and red toys that encourage sensory stimulation in newborns. The company is also a leading manufacturer of toys for infants and toddlers, including bath toys and safety items, plush characters, bouncers, mobiles and nursery accessories, and developmental toys.

The new line of Celebrating Imagination toys will include classic items with a twist such as wood toys, shape sorters, rattles, pull toys, finger puppets, and play gyms. Each toy will feature bold, bright colors, classic designs, and unique graphics to bring out a child's natural creativity, imagination and curiosity. Carter's Celebrating Imagination brand label identifies the toys with Carter's high standards of quality and knowledge of young children. Select products will be introduced to the marketplace during the 4th Quarter 1999. The full line will be introduced to the trade at Toy Fair in February 2000.

Fred Rowan, chairman and chief executive officer of Carter's, said: “We know what our consumers want because we have been providing them with high-quality childrenswear for more than 130 years. Mothers and grandmothers trust our brand and we believe they will be thrilled to see Carter's expand into play products that help cultivate the imagination in children. We are proud to associate with Kids II.”

Known to millions of mothers and grandmothers, Carter's is the number-one brand for children, newborn through age six. In 1999, Carter's will sell more than 60 million units. It is the favorite brand for young children. Carter's has long been known for its creativity and innovation in design and new product introduction.

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Mary Annable
Kids II, Inc.
(770) 751-0442

Suzanne Calkins
(212) 868-1600

Mary Duffy
The Dilenschneider Group
(212) 922-0900