So after 10 years, what investors and employees ask me most Boys of all ages can now take their Hot Wheels® radio control often is “What’s next for ?” Let me start with where we vehicles anywhere with the new Hot Wheels® R/C Stealth Rides. have been. In 2000, the senior management team created a About the size of a deck of cards, these fully functioning radio vision for the company to be: “The World’s Premier Toy Brands – control vehicles fold fl at to fi t in a very thin carrying case that Today and Tomorrow.” In the context of what’s next, we doubles as the control for the vehicle. challenged our thinking around the vision itself. To encourage girls to play outdoors, American Girl® introduces In 2010, we are launching a new guiding vision for the company: Lanie™, the 2010 Girl of the Year®, a thoughtful, energetic girl “Creating the Future of Play.” who discovers the world in her own backyard. Available for only one year, Lanie™ launched with two books that tell her story. At Mattel, we are the imaginations behind some of the most recognized and best-loved products around the world. But I This year, Mattel has partnered with the biggest names in kids’ will let you in on a secret: we don’t just make toys. We create entertainment from Disney® and Pixar® to World Wrestling emotional connections that last a lifetime by encouraging children Entertainment (WWE®) and Thomas & Friends™, developing to stretch their imaginations, creating joy and allowing children innovative toys that evoke creativity, foster role play and to become lost in play. That’s the real value of our toys. continue storylines off-screen and onto living room fl oors. That’s the value of play.

So with our new vision in mind, what’s next in the world of play? Creating the future of play is evolution. Our goal is to build on the progress we’ve made and to push ourselves to achieve First, we believe in reinventing favorites while creating new more. That’s consistent with our 2010 goals: we will capitalize products and play opportunities to captivate generations on opportunities to increase revenues by continuing core brand to come. After a year-long celebration of 50 years of ® performance while maximizing the opportunities surrounding as a fashion icon, 2010 is about reclaiming the Barbie® brand’s our new entertainment properties (WWE®, Toy Story® 3 and heritage as an inspiration to girls of all ages. Thomas & Friends™); maintain cost and expense controls; and deliver another strong year of profi ts and cash fl ow. This year, Barbie® celebrates another milestone – her 125th career and kicks off the global “I Can Be…™” campaign. For the We believe in the value of play – the possibilities it creates and fi rst time ever, consumers around the world helped select the the joy that it brings. At Mattel, we have the unique opportunity next career. With more than a half-million votes counted, her to work at the intersection of what is enduring and what is 125th career was selected by girls around the world and is innovative. When we do this, there are no limits to what we a News Anchor. But consumers of all ages and both genders can invent and the joy we can create. loudly campaigned for another Barbie® career. Therefore, we’re also launching Computer Engineer Barbie®, debuting in Winter 2010, to inspire a new generation of girls to explore this important high-tech career.

Innovation can redefi ne what it is to play and what makes something a toy. Adding a new twist to today’s play experiences, our innovative engineering team is transforming small toys into sophisticated gadgets that bring a new dimension to how boys and girls play today.

One of my favorite examples is the Fisher-Price® iXL™ learning system, a child’s portable window to a whole new world of learning and entertainment, featuring six applications: Story Book, Game Player, Note Book, Art Studio, Music Player and Photo Album.

Chairman of the Board and Chief Executive Offi cer