EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT:
March 3, 1999 Glenn Bozarth
Mattel, Inc.
310-252-3521
MATTEL ANNOUNCES MANAGEMENT REORGANIZATION
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STEIN AND BAUGHMAN TO LEAVE
LOS ANGELES, March 3 - Mattel, Inc. today announced that it has reorganized
its management structure, and that Bruce Stein, president-Mattel Worldwide
and chief operating officer, and Gary Baughman, president of Fisher-Price,
will leave the company.
"We are in the process of transforming Mattel from a traditional toy company
with four core brands to a children's products company with category
leadership and expertise in new mediums, platforms and channels of
distribution," Jill Barad, Mattel's chairman and chief executive officer,
said. "As we implement this change, it has become clear that our management
structure will also need to change, and we have been working with outside
consultants to determine what the optimum structure should be.
"Today we are announcing changes to Mattel's management organization that
will result in fewer levels of management. The new organizational
structure we have developed will provide for faster decision making, and
encourage action that is entrepreneurial and responsive to change,"
Barad said.
"The departure of Bruce and Gary is most painful for me, as I have great
respect for both of these men," Barad said. "We wish them the best, and
thank them for their enormous contributions to our company."
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Stein, who rejoined Mattel in 1996 after having started his toy industry
career there, said, "I am proud of all my accomplishments at Mattel, and
the company is in a great strategic position today, but I felt I needed
a new challenge. I want to take full advantage of new investment and
management opportunities in the convergence of consumer products and
intellectual-property marketing."
Baughman joined Mattel as part of the company's 1997 merger with Tyco
Toys. "I considered retirement at the time of the merger, but am
happy that I could serve a role in the successful integration of
the two companies," Baughman said. "I plan to work with my successor
during a transition period, and then to leave Fisher-Price in very
capable hands."
As part of the reorganization, five Mattel executives have been named
to the position of president for individual business units, and all
will now report directly to Jill Barad. The five units and their
leaders are as follows:
o Matt Bousquette has been promoted to president of the Boys/
Entertainment business unit, which will include Wheels and
other Boys Toys as well as Mattel's Disney and Nickelodeon
entertainment businesses.
o The Girls/Barbie unit will be headed by Andrienne Fontanella,
who has been promoted to president. She joined Mattel in
1996 with extensive cosmetics industry experience, and has
been responsible for Barbie licensing and collectibles.
o Neil Friedman, president of Tyco Preschool, has been promoted
to president of Fisher-Price brands, which will now encompass
all Infant and Preschool products, including Disney, Sesame
Street, Power Wheels, Magna Doodle, View-Master, See 'N Say,
and Blue's Clues.
o David Haddad has been promoted to president of Mattel Media,
and will also assume responsibility for the company's "Intel
Play" branded technology toys.
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o Pleasant Rowland will remain vice chairman of Mattel, and
president of Pleasant Company, and will help with direct-to-
consumer efforts for all Mattel brands.
"I'm absolutely certain that this new structure is best for the future
of our company," Barad said. "The new organization will help us to
maximize the potential of all of the parts and people of Mattel. And
I have utmost confidence in the ability of this team to deliver
incredible results," she said.
Mattel, Inc. is a worldwide leader in the design, manufacture
and marketing of children's products. With headquarters in El Segundo,
California, Mattel has offices and facilities in 36 countries and sells
its products in more than 150 nations throughout the world.
Note:
Forward-looking statements included in this release with
respect to the financial condition, results of operations and
business of the company, which include, but are not limited to
sales levels, the Mattel and Tyco restructuring charge, special
charges, other non-recurring charges, cost savings and
profitability, are subject to certain risks and uncertainties
that could cause actual results to differ materially from
those set forth in such statements. These include without
limitation: the company's dependence on the timely development,
introduction and customer acceptance of new products;
significant changes in buying patterns of major customers;
possible weaknesses of international markets; the impact of
competition on revenues and margins; the company's ability to
successfully integrate the operations of The Learning Company
following its merger into the company; the effect of currency
fluctuations on reportable income; unanticipated negative
results of litigation, governmental proceedings or
environmental matters; and other risks and uncertainties as
may be detailed from time to time in the company's public
announcements and SEC filings.
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