DALLAS, Jul 26, 2006 / --- In a joint announcement today, Mattel and Radica confirmed that they have reached an accord for Mattel to acquire Radica for $230 million.

According the announcement, both the companies’ Board of Directors had approved the transaction and that Radica shareholders will receive $11.55 in cash for each share of Radica common stock.

The transaction is still subject to approval of Radica shareholders, as well as customary regulatory approvals. Radica's largest shareholder has entered into a voting agreement in which he has agreed to vote shares constituting 40 percent of Radica's outstanding common stock in support of the transaction. It is expected that the transaction will be completed in the fourth quarter of 2006.

A Bermuda company headquartered in Hong Kong, Radica is a leader in the electronics arena, which manufactures and markets a diverse line of electronic entertainment products covering multiple business areas, including electronic games carrying the Radica, 20Q® and Play TV® brand names and youth electronics carrying the Girl Tech® brand name.

In 2005, Radica had revenues of approximately $163 million and maintains a Dallas-based design and marketing office, as well as a state-of-the-art manufacturing facility in China. It employs 6,000 people worldwide and sells its products to approximately 30 countries.