Exhibit 1.
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                                                   FOR IMMEDIATE RELEASE
                                                   Contact: Fell Herdeg
                                                   Telephone: 203-846-2274 x 110
                                                   Facsimile: 203-846-1776
                                                   Fell.Herdeg@soundprints.com


TRUDY ANNOUNCES RESTRUCTURE OF THE OWNERSHIP OF STUDIO MOUSE, LLC.

Norwalk, Connecticut, August 23, 2002 - Trudy Corporation (OTCBB:TRDY) announced
today the restructuring of the ownership of its publishing operation, Studio
Mouse, LLC. Trudy and Chart Studio Publishing (Pty.) LTD, Gauteng, South Africa,
previously announced their plan for ownership of the venture to be structured
45% by Trudy, 45% by Chart Studio and the remaining 10% by employees of Chart
Studio and Trudy. However, the Reserve Bank of South Africa has disapproved
Chart Studio's second application for equity participation in Studio Mouse.
Accordingly, Trudy and Chart Studio have entered into a Memorandum of
Understanding providing for changes in their business relationship as follows:

     o    Studio Mouse has become a subsidiary of Trudy, 95% owned by Trudy and
          5% owned by Ashley C. Andersen, President of Studio Mouse and
          Publisher of Trudy.

     o    Chart Studio's contingent equity will be converted into a long term
          loan from Chart Studio to Studio Mouse in the amount of approximately
          $420,000.

     o    Over the next 24 months, Chart Studio may reapply to the Reserve Bank
          of South Africa for approval of 50% equity ownership in Studio Mouse.
          Upon such approval and satisfaction of certain other conditions, Chart
          Studio may exercise the option to purchase a 50% equity ownership of
          Studio Mouse, in which case the long term loan will be forgiven.
          Should such approval not be forthcoming, or Chart Studio not exercise
          its option the long term loan, plus any equity appreciation, must be
          repaid over the 36 months following such 24 month period.

     o    In order to preserve its potential opportunity for equity
          participation in Studio Mouse, Chart Studio shall provide editorial
          and art content, graphic design services and worldwide marketing/sales
          support at cost to Studio Mouse.

Studio Mouse, LLC was established to capitalize on Trudy's license with the
Smithsonian Institution, Washington, DC, and its associated wealth of content
jointly owned by the Smithsonian and Trudy's publishing division, Soundprints,
and the library of educational content owned by Chart Studio. Studio Mouse
repurposes appropriate content from these sources and creates new content for
use in new and inventive "edutainment" product formats which are selling into
the retail market through such resellers as WalMart, Costco, Borders, Barnes &
Noble, and Books-a-Million. In the revised ownership structure, Studio Mouse has
been able to preserve its valuable relationship with Chart Studio Publishing
through licensing and service contracting arrangements.

Ms. Andersen remarked "I am incredibly pleased with the success of Studio Mouse
over the course of the last year and am excited by our continual growth. With
new products to add to our growing stable of proven winners, we look forward to
dramatically increasing both our domestic and international revenues in the year
ahead. Our revised relationship with Chart Studio and Trudy will continue to
support our growth."


In order to include information about the restructuring of the Studio Mouse
ownership, Trudy has delayed the filing with the SEC of its Quarterly Report on
Form 10-QSB for the quarter ended June 30, 2002. The Form 10-QSB will be filed
as soon as possible. In light of the restructured ownership, Trudy will be
required to include 95% (in lieu of 45%) of the operating results of Studio
Mouse in its financial statements going forward.

Trudy Corporation was founded in 1947 as a privately owned designer of stuffed
toys and became a public company in 1987. Trudy currently owns the exclusive
license with the Smithsonian Institution for children's storybooks, read-a-long
audio books and companion realistic toy products. It has active distribution
into the toy and book trade, the warehouse clubs, mass market retailers as well
as schools and libraries. Also, in its distribution portfolio is a mail order
catalog and an e-commerce business to the education community and at-home
consumers.

Except for the historical information contained herein, the matters set forth in
this press release are forward-looking statements within the meaning of "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risks and uncertainties that may
cause actual results to differ materially. These forward-looking statements
speak only to the date hereof; Trudy Corporation disclaims any intent or
obligation to update these forward-looking statements.