To provide urgent assistance to families in shelters, Toys“R”Us, Inc. has made local product donations to help children impacted by the tornado. The company is also encouraging its customers to join in helping the littlest victims of this disaster by donating products through the official Save the Children registry at www.Babiesrus.com/SavetheChildren.

As a national leader in child-focused disaster response and recovery programs, Save the Children is deploying Child Friendly Space kits in shelters, creating safe play areas for kids impacted by the tornado, and is also providing infant and toddler hygiene materials to support the well-being of young children while they are displaced from their homes. Its efforts will also include a review of the impact on child care centers, long term psycho-social support programs and assessing the status of local summer programs for children which may have been affected due to destruction of facilities and supplies.

Toys“R”Us, Inc. has more than 200 employees across seven stores in Oklahoma. The company is providing support to employees who may have been affected by the disaster through the Geoffrey Fund, which offers financial assistance to its team members in times of hardship.

Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund have an ongoing partnership with Save the Children to provide children and families with needed assistance in the wake of large-scale disasters in the U.S. and around the world.

About the Toys“R”Us Children’s Fund

The Toys“R”Us Children’s Fund is a public charity affiliated with Toys“R”Us, Inc., a company that unabashedly declares “We love kids!” The core mission of the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. Since it was founded in 1992, the Toys“R”Us Children’s Fund has contributed millions of dollars to qualified organizations that support that mission, including those providing disaster relief to children and families who are victims of large-scale crises. The Toys“R”Us Children’s Fund also provides grants to leading organizations that assist children with special needs.

Primary fundraising activities include the annual Toys“R”Us Children’s Fund Gala, a private, invitation-only event that showcases the work of the Fund and raises money to support its many beneficiaries. This annual benefit has raised $100 million since its inception in 1985 and is one of the largest single-night fundraising events held in New York City.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 874 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 660 international stores and over 160 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

The movie, which arrives in theaters on July 3, is the sequel to the 2010 smash hit Despicable Me, which became the 10^th-biggest animated motion picture in U.S. history. Despicable Me 2 promises more laughs with the return of super-villain Gru and his arsenal of gadgets and gizmos, his adorable girls and the unpredictably hilarious Minions.

“The first installment of Despicable Me was a blockbuster hit and fans worldwide immediately fell in love with Gru, Agnes, Margo, Edith and of course, the Minions,” said Lisa Harnisch, Senior Vice President, General Merchandising Manager, Toys“R”Us, U.S. “We worked closely with our valued partners to be the first retailer to offer Despicable Me 2 merchandise, including fun exclusive items sold only in our stores, providing customers the opportunity to experience all the excitement of the movie before it hits theaters.”

In Toys“R”Us stores now, shoppers will find exclusive items from Thinkway Toys such as a banana-scented Fart Blaster, plush characters and interactive Minions that are sure to bring a smile to even the most evil villain. Also currently available are collectible action figures, a build-your-own Minion figure, a Minion missile launcher, a Minion mobile and much more based on the movie’s loveable (and despicable!) characters. And, beginning May 30, fans will find all of these products along with classic games like Despicable Me 2 MONOPOLY and Despicable Me 2 OPERATION in a dedicated feature shop inside Toys“R”Us stores nationwide. 

“We are thrilled that Toys“R”Us has quickly brought Despicable Me 2 products to shelves, making its stores the ultimate Despicable Me 2 destination,” said Jamie Stevens, Senior Vice President of Global Retail Development, Universal Partnerships & Licensing. “The company’s excitement for this film is yet another great example of Toys“R”Us knowing exactly what its customers want and its commitment to providing them with the most expansive and unique assortment of merchandise available. We value this partnership and are excited to be working with Toys“R”Us to bring Despicable Me 2 toys to the film’s fans.”

The following select Despicable Me 2 items from Thinkway Toys are available exclusively at Toys“R”Us stores nationwide and online at Toysrus.com: 

Toys“R”Us Exclusive Despicable Me 2 Banana Fart Blaster

The ultimate gadget for Gru’s unpredictable Minions features sound effects, color changing lights and a banana scent. Kids can pump the blaster to activate banana scent, and pull the trigger for farting sound effects. Pranksters can activate the “Joke Mode” which delays sound effects by 20 seconds after pulling the trigger. The Banana Fart Blaster is now available exclusively at Toys“R”Us stores nationwide. Ages 4 to 12 years. Batteries are included.

Toys“R”Us Exclusive Despicable Me 2 Plush Buddies 3-Piece Set

Cuddle up with your favorite Minions! Stuart, Dave and Tim are soft and just waiting to be hugged! The Plush Buddies 3-Piece Set is now available exclusively at Toys“R”Us stores nationwide. Ages 4 to 12 years. Batteries are not required.

Toys“R”Us Exclusive Despicable Me 2 10-Piece Figure Set

Kids can take home their favorite characters from the movie! Each set comes with 10 highly detailed collectible figures and display stands. The 10-piece figure set is now available exclusively at Toys“R”Us stores nationwide. Ages 4 to 12 years. Batteries are not required.

Toys“R”Us Exclusive Despicable Me 2 Collector’s Edition Figures

Gru, Minion Dave and Agnes are highly detailed deluxe interactive figures with moving heads, eyes and mouths. Each character can say at least 30 phrases from the movie in their original voices. When you talk to them, they respond; Minion Dave and Agnes will even sing you a song! Collector’s Edition Minion Dave, Gru and Agnes are sold separately and will be available exclusively at Toys“R”Us stores nationwide in September. Ages 4 to 12 years. Batteries are included.

To download high-resolution product images, visit: https://toysrus.sharefile.com/d/sb3cd0934c5545908.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 874 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 660 international stores and over 160 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

About Despicable Me 2

Universal Pictures and Illumination Entertainment's worldwide blockbuster Despicable Me entertained audiences around the globe in 2010, grossing more than $540 million and becoming the 10^th-biggest animated motion picture in U.S. history.  In summer 2013, get ready for more Minion madness in Despicable Me 2. 

Chris Meledandri and his acclaimed filmmaking team create an all-new comedy adventure featuring the return of (former?) super-villain Gru (Steve Carell), his adorable girls, the unpredictably hilarious Minions...and a host of new and outrageously funny characters.  www.despicable.me

About Universal Partnerships & Licensing

UP&L oversees Universal’s consumer product licensing, film and home entertainment promotions, and all corporate alliances for Universal’s theatrical, home entertainment, theme parks and stage productions.  This dedicated division is also responsible for monetizing the Studio’s vast library of films and characters through licensing, branding and marketing opportunities.  UP&L is part of NBCUniversal.  NBCUniversal is one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience.  NBCUniversal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group and world–renowned theme parks.  NBCUniversal is owned by Comcast Corporation.

About Thinkway Toys

Thinkway is a leading Global Toy Company founded and owned by Albert Chan, President and CEO. Thinkway is known for its high quality details, along with the ability to bring toys to life with electronics.

Media Contacts:
Toys“R”Us, Inc.
Nicole Hayes
973-617-8862/646-366-4371
nicole.hayes@toysrus.com

Jessica Offerjost
973-617-4766/646-366-8854
jessica.offerjost@toysrus.com

“The Toys“R”Us Children’s Fund Gala is a celebration of the love the toy and juvenile products industries have for all kids. It also serves to showcase the Fund’s most significant efforts in charitable giving over the past year and its ongoing commitment to keep kids safe and help them in times of need. Children are the heart of our brand and our many philanthropic initiatives to support them is a source of great pride for the “R”Us organization,” said Kathleen Waugh, Chairman of the Toys“R”Us Children’s Fund.

The evening featured a special opportunity for guests to help the thousands of individuals and families whose lives were impacted by Superstorm Sandy through the Hurricane Sandy New Jersey Relief Fund (HSNJRF). To date, the HSNJRF created by Governor Chris Christie and First Lady Mary Pat Christie has raised $34 million against the estimated $37 billion in damage to New Jersey. Gala attendees rallied to contribute thousands of dollars to this cause, which will provide housing assistance to displaced families, social and counseling services to those affected and economic development support to the communities impacted, among many other programs. In attendance was New Jersey’s First Lady, Mary Pat Christie, who spoke passionately about the HSNJRF and thanked attendees for their donations.

Based in New Jersey, Toys“R”Us, Inc. employs more than 4,200 team members throughout the state. As a result, this ongoing crisis is very personal to the “R”Us family. In the wake of the superstorm, the Toys“R”Us Children’s Fund made a $1 million donation to the HSNJRF to help provide relief and support rebuilding efforts.

Below are highlights of some of the company’s key philanthropic initiatives from the past year:

Taking a “Stand” for Childhood Cancer

In 2012, Toys“R”Us Children’s Fund reaffirmed its commitment to Alex’s Lemonade Stand Foundation (ALSF), an organization dedicated to helping find a cure for childhood cancer, providing a $100,000 grant through the Toys“R”Us Children’s Fund. What started as a front yard lemonade stand hosted by 4-year-old Alexandra “Alex” Scott, who was diagnosed with cancer just before her first birthday, has turned into a national effort continued today by children and families holding lemonade stands across the country. The company’s second consecutive in-store and online fundraising campaign raised more than $1.9 million in 2012 and helped teach the importance of giving back by encouraging children to host their own official Alex’s Lemonade Stands. Since the partnership began in 2011, donations from customers, Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund together have provided more than $3.9 million to the organization.

Granting Wishes, One Child at a Time

This past year, the Toys“R”Us Children’s Fund and Toys“R”Us, Inc. provided Make-A-Wish with $500,000 in grant funding and gift cards. A visit to Toys“R”Us is a top request for many “wish children” who are facing life-threatening medical conditions, and throughout the year, Toys“R”Us stores nationwide created numerous celebratory events during special shopping trips. Over the past 16 years, the Toys“R”Us Children’s Fund and Toys“R”Us, Inc. have supported Make-A-Wish with more than $2.3 million to help make wishes come true.

Shaq-A-Claus Spreading Holiday Cheer

The Toys“R”Us Children’s Fund and Toys“R”Us, Inc. teamed up for the fourth consecutive year with NBA legend Shaquille O’Neal to help Toys for Tots bring toys and smiles to America’s neediest children. The 2012 “Give Back With Shaq” in-store and online fundraising campaign raised $4 million, and nearly 350,000 toys were collected. The Toys“R”Us Children’s Fund also provided a $250,000 grant to Toys for Tots to kick off the program. As the largest retail partner in the history of the organization, more than $31.6 million and 3.75 million toys have been collected throughout the nine-year partnership. In addition, grants totaling more than $5 million have been awarded to the Marine Toys for Tots Foundation from the Toys“R”Us Children’s Fund.

Hosting Joyful Baby Showers for Military Moms-to-Be

In 2012, the Toys“R”Us Children’s Fund and Babies“R”Us joined forces with Operation Shower, an organization that hosts joyful baby showers for military wives to ease the stress of their husbands’ deployment, to co-host baby shower events nationwide. The organization ensures these women receive some of the basic essentials they need for their newborns. Operation Shower began with a simple act of kindness when one woman sent a “shower in a box” to a few expectant wives whose husbands were deployed. After the first large-scale shower was organized at Fort Bragg, N.C. in June 2007, Operation Shower was officially born. Since then, the organization has helped more than 1,300 military moms through hard work and generous donations. Showers are held on bases across the country for all branches of the armed forces – Army, Navy, Air Force, Marines and National Guard. To kick off the partnership, the Toys“R”Us Children’s Fund donated $100,000 to Operation Shower so they may purchase gifts for these moms, as well as to help host festive occasions to celebrate their new arrivals.

Supporting the Special Needs Community

Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund have a long history of supporting the special needs community through the Toys“R”Us Toy Guide for Differently-Abled Kids. In collaboration with the National Lekotek Center, a nonprofit organization dedicated to making play accessible for children of all abilities, this valuable resource is released annually, providing qualified toy recommendations to aid in the skill development of children who have physical, cognitive or developmental disabilities. Mom, TV Host, Best Buddies Board Member and Philanthropist Nancy O’Dell graced the cover and lent her support to the 2012 Guide. Additionally, the Toys“R”Us Children’s Fund provides ongoing grants to many leading special needs organizations, including Autism Speaks, Muscular Dystrophy Association, National Down Syndrome Society and Special Olympics, among others.

About the Toys“R”Us Children’s Fund

The Toys“R”Us Children’s Fund is a public charity affiliated with Toys“R”Us, Inc., a company that unabashedly declares “We love kids!” The core mission of the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. Since it was founded in 1992, the Toys“R”Us Children’s Fund has contributed millions of dollars to qualified organizations that support that mission, including those providing disaster relief to children and families who are victims of large-scale crises. The Toys“R”Us Children’s Fund also provides grants to leading organizations that assist children with special needs.

Primary fundraising activities include the annual Toys“R”Us Children’s Fund Gala, a private, invitation-only event that showcases the work of the Toys“R”Us Children’s Fund and raises money to support its many beneficiaries. This annual benefit has raised more than $100 million since its inception in 1985 and is one of the largest single-night fundraising events held in New York City.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 874 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 660 international stores and over 160 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

In the coming year, Babies“R”Us will once again leverage its dedicated microsite at Babiesrus.com/OperationShower as an online information and donation portal, where visitors can learn how to support this program and ensure that military moms-to-be, who are often far away from friends and family, receive basic essentials for their newborns. Since launching this digital destination in 2012, individuals, organizations and businesses eager to support Operation Shower have donated items from the charity’s official Babies“R”Us Registry, which allows shoppers to purchase much-needed products for these expectant moms and have them sent directly to Operation Shower for use at events throughout the year.

“We are thrilled to renew and expand upon our partnership with Operation Shower in the year ahead,” said Sloane Lucas, Director, Corporate Philanthropy, Toys“R”Us, Inc. “By joining forces, we have been able to impact the lives of hundreds of America’s military families by showering expectant moms with joy and providing them with countless baby essentials for their newborns while their husbands are bravely serving our country. It is our honor to support these military wives, by truly celebrating this exciting time in their lives.”

Creating Unforgettable Memories for Military Moms-To-Be  

Last year, Babies“R”Us showered nearly 200 military moms-to-be with thousands of donated must-have items to help them prepare for their little ones. Over the next year, Babies“R”Us will co-host four additional events with Operation Shower benefiting families across the country from all branches of military, including Army, Navy, Air Force, Marines and National Guard. Military moms-to-be are invited to attend the shower with a loved one and experience all the joy associated with a traditional baby shower – from themed décor to receiving exciting prizes and presents. The women also receive a Babies“R”Us gift card, allowing them to shop for the baby items they still need, as well as resource materials, including product recommendations and useful information that may help new moms prepare for their little-one’s arrival.

Opportunity to Support America’s Military Families through Babies“R”Us Registry

To raise awareness and engage consumers in helping military moms, Babies“R”Us will continue to utilize its best-in-class registry to fundraise by offering expectant parents the opportunity to request donations for Operation Shower from friends and family purchasing items from their registry. New and existing registrants are eligible to join the fundraising program at any time throughout the year. Expectant moms who register online at Babiesrus.com can add an Operation Shower donation of $1 or more to their new or existing registry.

Babies“R”Us customers, as well as local businesses and organizations, can donate products to military moms-to-be by purchasing items from the official Operation Shower baby registry, which can be accessed through Babiesrus.com/OperationShower. To date, hundreds of products have been donated to support military families as a result of the registry. All items purchased off of the organization’s official Babies“R”Us Registry are shipped directly to Operation Shower and used as gifts for expectant moms at upcoming showers.

“The first words most moms express after walking away from the showers we host with Babies“R”Us are those of overwhelming gratitude,” said LeAnn Morrissey, founder of Operation Shower. “The company is dedicated to moms and families by the very nature of its business and has been an incredibly dedicated partner, ensuring that every expectant mom who attends a shower event receives baby essentials and a sheer sense of joy about the overall experience. We look forward to partnering with Babies“R”Us for another year to host baby showers for hundreds more military moms-to-be and continually engage customers nationwide to join us in supporting America’s military families through our dedicated registry.”

Operation Shower began with a simple act of kindness when LeAnn Morrissey sent a “shower in a box” to a few expectant wives whose husbands were deployed. After organizing her first large-scale shower at Fort Bragg, North Carolina in June 2007, Operation Shower was officially born. The organization has since showered nearly 1,400 military moms from all branches of the armed forces.

Babies“R”Us will drive awareness through a multi-faceted marketing program, inclusive of online advertising, email blasts, social media and more to engage and encourage customers to contribute to the Babies“R”Us campaign benefiting Operation Shower.

Please click on the following link to download high-res images: https://toysrus.sharefile.com/d/s7eb15c31e6847e3a

About The Toys“R”Us Children’s Fund

The Toys“R”Us Children’s Fund is a public charity affiliated with Toys“R”Us, Inc., a company that unabashedly declares “We love kids!” The core mission of the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. Since it was founded in 1992, the Toys“R”Us Children’s Fund has contributed millions of dollars to qualified organizations that support that mission, including those providing disaster relief to children and families who are victims of large-scale crises. The Toys“R”Us Children’s Fund also provides grants to leading organizations that support children with special needs.

Primary fundraising activities include the annual Toys“R”Us Children’s Fund Gala, a private, invitation-only event that showcases the work of the Fund and raises money to support its many beneficiaries. This annual benefit has raised $100 million since its inception in 1985 and is one of the largest single-night fundraising events held in New York City.

Lenders, investors and bona fide prospective investors in the loans and notes set forth above are invited to join this call using the following dial-in information:

(888) 407-6729, domestic
(706) 679-8795, international
Conference ID #42001123

Media Contact:
Toys“R”Us, Inc.
Kathleen Waugh
973-617-5888/646-366-8823
waughk@toysrus.com

Mr. Javes, a seasoned retail executive with more than 30 years of experience in the Australian market, returns to Toys“R”Us, Australia, having first joined the company in 2008 as General Merchandise Manager with responsibility for toy and juvenile merchandising. Prior to being appointed Managing Director, Toys“R”Us, Australia, Mr. Javes served as Chief Executive Officer at Anaconda Group Pty from 2009 to 2012, where he managed a retail chain of camping, outdoor and adventure gear stores across Australia.

Ms. Merz said, “We are thrilled to welcome Andre back to Toys“R”Us and look forward to his many contributions in providing our customers in Australia a differentiated shopping experience, including the best and broadest assortment of toy and juvenile items.”

Mr. Javes stated, “As a destination for parents and children alike, Toys“R”Us is one of the most well-known and beloved brands in retail. I’m excited to rejoin the organization and continue to build on the strides the Australian team has made to advance the company’s position as the world’s leading dedicated toy and juvenile products retailer.”

Earlier in his career, Mr. Javes worked at Kmart as Divisional Merchandise Manager for Toy & Outdoor products in Australia and New Zealand. He also served as Group Merchandise Manager for Grocery at Coles Supermarkets Australia Pty Ltd. Mr. Javes holds a Certificate of Management from Deakin University Australia.

With this appointment, the company also announced that Tom Via, formerly Managing Director, Toys“R”Us, Australia, has been promoted to Senior Vice President, Juvenile, Toys“R”Us, U.S.  In this role, he is responsible for providing leadership for the company’s juvenile growth strategy, including merchandise assortment, product pricing, promotions, and differentiated brand offerings for the company’s approximately 450 Babies“R”Us locations, including integrated store formats, as well as Babiesrus.com.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 874 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 660 international stores and over 160 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

About Toys“R”Us, Asia Pacific

Toys“R”Us, Asia Pacific, a division of Toys“R”Us, Inc., operates approximately 300 Toys“R”Us, Babies“R”Us and integrated stores in nine countries and jurisdictions across the region, including Japan, Australia, China, Hong Kong, Malaysia, Singapore, Taiwan, Thailand and Brunei. Following the opening of its first location in the area with a licensed store in Singapore in 1984, Toys“R”Us has continued to grow its presence through both wholly owned and licensed store operations, and in 2011, acquired a majority stake in its previously licensed businesses. With approximately 12,000 employees in the region, Toys“R”Us, Asia Pacific offers customers a differentiated shopping experience with a broad selection of exclusive products and unique services.  Additional information on Toys“R”Us, Asia Pacific can be found on Toysrusinc.com.

Media Contacts:
Toys“R”Us, Inc.
Jennifer Albano
973-617-5632
Jennifer.Albano@toysrus.com

Katie Reczek
973-617-4381
Katie.Reczek@toysrus.com

The 2013 “Shine A Light For Autism” campaign raised more than $1.3 million in the United States during Autism Awareness Month in April. One hundred percent of these funds will be dedicated to supporting the Autism Speaks Community Grants program, which assists community-based organizations expand existing programs and create new ones that demonstrate innovation in providing services to improve and enrich the lives of individuals with autism. An additional $765,000 was raised to support the work of Autism Speaks in Canada.

Beyond Autism Awareness Month, Toys“R”Us, Babies“R”Us and the Toys“R”Us Children’s Fund together serve as national sponsors of Walk Now for Autism Speaks, Autism Speaks’ signature fundraising and awareness events taking place in more than 95 cities and communities across North America. During these events, “R”Us employees walk alongside individuals with autism, their families and friends to raise money and awareness. The complete schedule of events can be found at WalkNowforAutismSpeaks.org. This year, for the first time, people across the country can sign up to “Walk With Geoffrey” online at WalkNowForAutismSpeaks.org/Geoffrey. Supporters who may not live near an official event can still walk virtually alongside the company’s iconic mascot Geoffrey the Giraffe to raise funds for Autism Speaks.

Toys“R”Us, Inc. is the largest retail partner of Autism Speaks. The company offers a dedicated microsite at www.Toysrus.com/AutismSpeaks where visitors can find a downloadable PDF and online store featuring the “Ten Toys That Speak To Autism.” This list represents a collaboration between Toys“R”Us, Autism Speaks and the National Lekotek Center, a nonprofit organization dedicated to making play accessible for children with disabilities, to identify toys that can help kids with autism develop language, creativity and social skills, among others, while playing alongside siblings and friends. The “Ten Toys That Speak To Autism” is a special subset of the annual Toys“R”Us Toy Guide for Differently-Abled Kids.

The Toys“R”Us Children’s Fund launched the 2013 partnership with a $400,000 grant to Autism Speaks. Since the partnership began in 2007, Toys“R”Us, Inc., the Toys“R”Us Children’s Fund and customer contributions have combined to provide Autism Speaks with more than $18 million.

About Autism

Autism is a general term used to describe a group of complex developmental brain disorders – autism spectrum disorders – caused by a combination of genes and environmental influences. These disorders are characterized, in varying degrees, by communication difficulties, social and behavioral challenges, as well as repetitive behaviors. An estimated one in 88 children in the U.S. is on the autism spectrum – a 78 percent increase in six years that is only partly explained by improved diagnosis.

Charitable Giving at Toys“R”Us

The philanthropic mission of Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. The Toys“R”Us Children’s Fund contributes millions of dollars annually to various children’s organizations, including those providing disaster relief to victims of large-scale crises, as well as those supporting America’s military families. The Fund also provides grants to leading special needs organizations and has donated $1 million as the first Founding Partner of the 2014 Special Olympics USA Games. In addition to financial and product donations, Toys“R”Us, Inc. hosts in-store and online fundraising campaigns annually that raise millions of dollars for the company’s signature philanthropic partners.

About Autism Speaks

Autism Speaks is the world’s leading autism science and advocacy organization. It is dedicated to funding research into the causes, prevention, treatments and a cure for autism; increasing awareness of autism spectrum disorders; and advocating for the needs of individuals with autism and their families. Autism Speaks was founded in February 2005 by Suzanne and Bob Wright, the grandparents of a child with autism. Mr. Wright is the former vice chairman of General Electric and chief executive officer of NBC and NBC Universal. Since its inception, Autism Speaks has committed more than $195 million to research and developing innovative resources for families. Each year Walk Now for Autism Speaks events are held in more than 100 cities across North America. On the global front, Autism Speaks has established partnerships and related activities in more than 40 countries on five continents to foster international research, services and awareness. To learn more about Autism Speaks, please visit AutismSpeaks.org.

Save the Children has a long history of showcasing the creativity of children through their artwork and has implemented various art contests over the years to encourage youth to show their support for those in need through design, while raising awareness and funds for the organization’s ongoing mission. Inspired by Save the Children’s licensed art contests and eager to highlight the good work of its long-standing philanthropic partner, Babies“R”Us has launched the Project Doodle Contest to celebrate the introduction of this limited edition t-shirt assortment.

Beginning today, budding artists, ages 8 and younger, can visit Babiesrus.com/HeidiKlum or the company’s Facebook page, Facebook.com/Babiesrus, to create and share their designs using Doodle.ly, a digital sketchpad. Through this contest, two designs will be chosen to be featured on t-shirts, which will be manufactured and sold in Babies“R”Us stores nationwide and online this fall as part of the Truly Scrumptious by Heidi Klum collection.

“As a mom of four, I’m constantly drawing design inspiration from my kids – whether it’s their unique fashion sense, their latest art project or simply their zest for life. Johan, my 6-year-old, is super creative, and I knew I wanted to incorporate his whimsical and imaginative designs into my Truly Scrumptious collection in a very special way,” said Heidi Klum. “I’m so proud – as a mom and a designer – to introduce this one-of-a-kind assortment of t-shirts to Babies“R”Us customers in conjunction with my all-new summer apparel collection. These adorable baseball style shirts featuring monsters – a nod to my signature Truly Scrumptious characters – will be used to shine a spotlight on the wonderful work Save the Children does for children throughout the United States. I can’t wait to see all of the fun, unique designs that kids submit through the Project Doodle Contest, and watch them come to life as part of my fall line.”

“As an organization dedicated to providing support to children in need, while inspiring kids through art, we’re thrilled to partner with Babies“R”Us and Heidi on this initiative,” said Mark Shriver, Senior Vice President for Strategic Initiatives for Save the Children. “The generous donation provided in conjunction with the launch of these t-shirts and the Project Doodle Contest will help us to further our mission in assisting youth in impoverished regions throughout the United States.”

Johan Lends Designs to Limited Edition T-Shirts for Babies“R”Us

Finding inspiration in her son’s imaginative sketches, Heidi Klum continually incorporates signature characters and whimsical designs into her Truly Scrumptious collection. Now, Johan himself is playing designer, as Babies“R”Us introduces two baseball-style t-shirts – one with pink sleeves and one with blue sleeves – featuring his hand-drawn, silly monster creations front and center. Sure to be loved by parents and children, the t-shirts are representative of the imagination and creativity of kids. Each shirt will be easily identifiable with a special hangtag to draw attention to Save the Children’s U.S. Programs.

The tees are now available online and will roll into Babies“R”Us stores nationwide next week for $4.99. To complement the in-store availability of these unique shirts, customers will find eye-catching signage at the front of the stores’ apparel sections touting the all-new assortment, as well as the Project Doodle Contest.

“We’re thrilled to welcome Johan’s designs in our stores nationwide and online as part of our Truly Scrumptious summer collection,” said Neil Mulhall, Vice President, Divisional Merchandising Manager, Babies“R”Us. “We’re equally excited to offer little ones across the country a chance to play designer through the Project Doodle Contest, bringing another fun, unexpected assortment of kid-designed tees to our stores this fall.”

The company will support the launch of the special, monster-themed tees, as well as the Project Doodle contest, with dedicated email blasts and in-store signage, as well as social media support via Facebook, Twitter and Pinterest. Customers can also join the conversation on Twitter by following @Babiesrus and using the #ProjectDoodle hash tag.

Little Artists Encouraged to Submit Creative Designs through Nationwide Contest

Building on Heidi Klum’s mission to help inspire creativity among little ones everywhere, and to celebrate this new, kid-designed assortment, Babies“R”Us has launched the Project Doodle Contest, providing children with an opportunity to share their own drawings in the social space, as well as the chance the win great prizes. Using Doodle.ly, a digital sketchpad, users are encouraged to doodle their most imaginative monster design before sharing them on the Babies“R”Us Facebook fan page for a chance to win.

ENTER! Starting today, fans can visit the company’s official Facebook page at Facebook.com/Babiesrus to register. Then, little artists ages 8 and younger can doodle their own, unique design right from a computer, iPad or mobile device using Doodle.ly. With a blank canvas, eight drawing instruments and many colors to choose from, the possibilities are endless for budding artists. Once a design is complete, entrants will be encouraged to add a title and publish their submission, virtually posting it to the online gallery for all to see.

Those interested in entering can also pick up an official mail-in entry form at any local Babies“R”Us store. The form includes a space for drawing the design, as well as information about how to submit their designs. All entries must be submitted by 11:59pm ET on April 23.

VOTE! Beginning Tuesday, April 23 through Monday, May 6, design guru Heidi Klum will lead a panel of judges from Babies“R”Us and Save the Children in choosing ten finalists from the overall pool of entries.

Then, Babies“R”Us will call upon the public to help choose two Grand Prize winners. Beginning Wednesday, May 8 through Monday, May 13, fans of the company’s official Facebook page can vote for their favorite design in both the boy and girl categories.

WIN! At the end of the voting process, two designs will be named Grand Prize winners, each of which will appear on a tee that will be manufactured and sold as part of the Truly Scrumptious by Heidi Klum collection this fall, available exclusively at Babies“R”Us stores nationwide. Plus, each Grand Prize winner will receive the entire 2013 Truly Scrumptious fall clothing collection, for their gender and size, up to 5T. In the event that a winner’s clothing size is larger, they will receive a Babies“R”Us Gift Card in the amount of the collection value. In addition, each of the remaining eight finalists will receive a $100 Babies“R”Us gift card.

Company Builds on Longtime Support of Save the Children

Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund, together, have long been partners of Save the Children, donating more the $6.7 million to help support their work with children in underserved areas around the country, as well as for immediate disaster relief, most recently in the aftermath of Hurricane Sandy.

To download images of Project Doodle Contest collateral, Heidi Klum and the new Truly Scrumptious by Heidi Klum t-shirts, please click here.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 873 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 660 international stores and over 160 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

Autism Speaks is dedicated to funding global research, raising public awareness and advocating for the needs of individuals with autism and their families. The organization also helps support children and families through partnerships with local autism organizations across the country. All funds raised during the 2013 Toys“R”Us campaign will be dedicated to supporting the Autism Speaks Community Grants program, which helps promote services that enhance the lives of those affected by autism, expand the capacity to effectively serve this growing community and enhance the field of service providers.

 “Through this campaign, and our ongoing commitment to the special needs community, we hope to shine a light on the struggles children and families face as a result of autism spectrum disorders,” said Kathleen Waugh, Chairman of the Toys“R”Us Children’s Fund. “Many of our customers and team members have been personally impacted by this disorder, so this program is even more meaningful as we work together to help solve the autism puzzle.”

The company’s “Shine A Light For Autism” theme has been brought to life through a single campaign image created by James Hogarth, a talented artist with autism, and son of proud mom Mary Hogarth, a longtime employee of Toys“R”Us. A friendly sun shines its warm light on many-hued homes, each with a child peering out, representing the many faces and facets of this spectrum disorder. Customers have the opportunity to bring this artistic interpretation home through a reusable shopping bag. Those who donate $10 or more to Autism Speaks at any Toys“R”Us or Babies“R”Us store will receive the limited-edition item, while supplies last.

At Toysrus.com/AutismSpeaks, visitors can also find a downloadable PDF and online store featuring the “Ten Toys That Speak To Autism.” The company collaborated with Autism Speaks and the National Lekotek Center, a nonprofit organization dedicated to making play accessible for children with disabilities, to identify toys that can help kids with autism develop language, creativity and social skills, among others, while playing alongside siblings and friends. The “Ten Toys That Speak To Autism” is a special subset of the annual Toys“R”Us Toy Guide for Differently-Abled Kids and will remain online as a resource throughout the year.

Walk With Geoffrey!

Toys“R”Us, Babies“R”Us and the Toys“R”Us Children’s Fund together serve as national sponsors of Walk Now for Autism Speaks, a year-long series of more than 95 walk events taking place throughout North America. During these events, “R”Us employees walk alongside individuals with autism, their families and friends to raise money and awareness.

This year, for the first time, people across the country can sign up to “Walk With Geoffrey” online at WalkNowForAutismSpeaks.org/Geoffrey. Even if supporters aren’t near an event, they can still walk virtually alongside the company’s iconic mascot Geoffrey the Giraffe to raise funds for Autism Speaks.

The Toys“R”Us Children’s Fund provided a $400,000 grant to Autism Speaks to launch the 2013 campaign, and Toys“R”Us, Canada is also fundraising through its more than 70 stores. Since 2007, Toys“R”Us, Inc., the Toys“R”Us Children’s Fund and customer contributions have combined to provide Autism Speaks with more than $16 million.

About Autism

Autism is a general term used to describe a group of complex developmental brain disorders – autism spectrum disorders – caused by a combination of genes and environmental influences. These disorders are characterized, in varying degrees, by communication difficulties, social and behavioral challenges, as well as repetitive behaviors. An estimated one in 88 children in the U.S. is on the autism spectrum – a 78 percent increase in six years that is only partly explained by improved diagnosis.

Charitable Giving at Toys“R”Us

The philanthropic mission of Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. The Toys“R”Us Children’s Fund contributes millions of dollars annually to various children’s organizations, including those providing disaster relief to victims of large-scale crises, as well as those supporting America’s military families. The Fund also provides grants to leading special needs organizations and has donated $1 million as the first Founding Partner of the 2014 Special Olympics USA Games. In addition to financial and product donations, Toys“R”Us, Inc. hosts in-store and online fundraising campaigns annually that raise millions of dollars for the company’s signature philanthropic partners.

About Autism Speaks

Autism Speaks is the world’s leading autism science and advocacy organization. It is dedicated to funding research into the causes, prevention, treatments and a cure for autism; increasing awareness of autism spectrum disorders; and advocating for the needs of individuals with autism and their families. Autism Speaks was founded in February 2005 by Suzanne and Bob Wright, the grandparents of a child with autism. Mr. Wright is the former vice chairman of General Electric and chief executive officer of NBC and NBC Universal. Since its inception, Autism Speaks has committed more than $195 million to research and developing innovative resources for families. Each year Walk Now for Autism Speaks events are held in more than 100 cities across North America. On the global front, Autism Speaks has established partnerships and related activities in more than 40 countries on five continents to foster international research, services and awareness. To learn more about Autism Speaks, please visit AutismSpeaks.org.

Media Contacts:
Toys“R”Us, Inc.
Kerry Smith
973-617-4380/646-366-8825
Kerry.Smith@toysrus.com

Jerry Storch, Chairman and CEO, Toys“R”Us, Inc., stated, “We are pleased with the overall operating results our team delivered in 2012, particularly the growth in operating earnings in the United States, while our international operating earnings were impacted by the challenging global economic environment, predominantly in Europe and Japan.  The change in net income for the year was mainly attributable to costs associated with our successful debt refinancings and an increase in income tax expense.”

“We are proud to have achieved our highest level of gross margin rate since the company was taken private seven years ago, and Adjusted EBITDA in excess of $1 billion for the fourth year in a row.  This was accomplished through an intense focus on offering innovative programs to serve our customers, strengthening the impact of our marketing efforts, enhancing our omnichannel capabilities, deepening our assortment of differentiated products and continuing to take a disciplined approach to expense control management.”

“We are also pleased with the successful refinancings of our Spain, France and United Kingdom real estate facilities, and we now have no significant debt maturities until fiscal 2015.”

“Looking ahead, we plan to expand our global reach, including throughout China and Southeast Asia, while strengthening our leadership position as the premier toy and juvenile products shopping destination.”

Fourth Quarter Fiscal 2012 Highlights – Total Company

• Net sales were $5.8 billion, a decrease of $155 million compared to the prior year. Excluding the impact of foreign currency translation, net sales decreased $114 million.  Our reporting period for the fourth quarter included 14 weeks compared to 13 weeks in the prior year, with the extra week accounting for net sales of approximately $152 million.
• Gross margin as a percentage of net sales, was 34.1% versus 33.4% in the prior year, due to improved promotional efficiency and a shift in sales mix to higher margin categories.
• Operating earnings were $578 million, compared to $616 million in the prior year.
• Adjusted EBITDA¹ was $717 million, compared to $749 million in the prior year.
• Net earnings were $239 million, compared to $343 million in the prior year.  The decline was primarily attributable to a $34 million increase in interest expense and a $33 million increase in income tax expense.  The increase in income tax expense was predominantly due to a non-cash impact for changes to valuation allowances, partially offset by lower tax expense associated with earnings before income taxes.  

Fourth Quarter Fiscal 2012 Highlights – Domestic Segment

• Net sales of $3.5 billion decreased 2.1% versus the prior year, driven by a comparable store net sales decline of 4.5%.  Our reporting period for the fourth quarter included 14 weeks compared to 13 weeks in the prior year, with the extra week accounting for net sales of approximately $95 million.
• The Entertainment category (which includes electronics, video game hardware and software) continued to be the weakest, with net sales decline of 11.1%, while the Juvenile and Learning categories generated net sales growth of 2.6% and 1.4%, respectively.
• Gross margin as a percentage of net sales, was 32.8%, an increase of 1.1 percentage points compared to the prior year.  Gross margin dollars were $1,154 million, compared to $1,141 million in the prior year.
• Operating earnings were $372 million, compared to $374 million in the prior year. 

Fourth Quarter Fiscal 2012 Highlights – International Segment

• Net sales of $2.3 billion decreased by 3.4% versus the prior year driven by a comparable store net sales decline of 5.4%.  Excluding the impact of foreign currency translation, net sales decreased by $39 million or 1.7%.  Our reporting period for the fourth quarter included 14 weeks compared to 13 weeks in the prior year, with the extra week accounting for net sales of approximately $57 million.
• Gross margin as a percentage of net sales, was 36.3%, an increase of 0.2 percentage points compared to the prior year.  Gross margin dollars were $815 million, compared to $840 million in the prior year.
• Operating earnings were $292 million, compared to $325 million in the prior year.

Full Year Fiscal 2012 Highlights – Total Company

The following highlights combine the fourth quarter results being announced today with the results of the first three quarters of the fiscal year, which have been previously disclosed:

• Net sales were $13.5 billion, compared to $13.9 billion in the prior year.  Excluding the impact of foreign currency translation of $133 million, net sales decreased $233 million primarily due to a decline in comparable store net sales of 3.5% in the Domestic segment and 5.0% in the International segment.  Partially offsetting the decrease was an increase in net sales from new locations within the International segment, including stores acquired in China and Southeast Asia. Our reporting period for fiscal 2012 included 53 weeks compared to 52 weeks for fiscal 2011, with the extra week accounting for net sales of approximately $152 million.
• Gross margin as a percentage of net sales, was 36.6%, an increase of 0.9 percentage points compared to the prior year rate of 35.7% primarily as a result of margin rate improvements across all categories.  Gross margin dollars were $4,951 million, compared to $4,970 million in the prior year.
• Selling, general and administrative expenses (“SG&A”) increased by $12 million to $4,041 million, compared to $4,029 million in the prior year.  The expenses associated with our China and Southeast Asia business contributed $70 million to this year’s increase in SG&A, while the impact of foreign currency translation reduced SG&A by $43 million.
• Operating earnings were $556 million, compared to $582 million in the prior year, a decrease of $26 million. Excluding Corporate expenses, Domestic segment operating earnings increased by $29 million, offset by a decrease in International segment operating earnings of $68 million.
• Adjusted EBITDA¹ for fiscal 2012 was $1,015 million, compared to $1,054 million in the prior year.
• Interest expense was $480 million, an increase of $38 million from the prior year’s level of $442 million.  The increase in interest expense included the make-whole premium of approximately $18 million paid on repayment of the $400 million 7.875% senior notes due in fiscal 2013.
• Net earnings were $38 million, compared to $149 million in the prior year.  The decline in net earnings was mainly attributable to income tax expense of $53 million compared to a $1 million benefit in the prior year, predominantly due to a non-cash impact for changes to valuation allowances, partially offset by lower tax expense associated with earnings before income taxes, and an increase in interest expense of $38 million primarily related to current year refinancings.

Capital Spending and Depreciation

• For the full year, capital spending was $286 million, a decrease of $94 million compared to $380 million in the prior year.
• The company continues to expand its global reach, opening 55 new standalone stores.  In addition, the juvenile integration strategy combining standalone toy and baby stores into one integrated, side-by-side (“SBS”) store, resulted in converting or relocating 37 stores to the SBS format and opening 10 new SBS stores.  As of February 2, 2013, the company operated 374 SBS stores and 100 additional Toys“R”Us stores augmented with Babies“R”Us Express and Juvenile Expansion formats, which dedicate a smaller portion of the store than the SBS store format to juvenile products.
• Depreciation was $407 million, an increase of $4 million from the prior year level of $403 million.

Liquidity and Debt

The company ended the year with cash and cash equivalents of $1.1 billion compared to $701 million in the prior year and unused availability under committed lines of credit of $1.3 billion, aggregating approximately $2.4 billion of total liquidity.  $253 million of this liquidity has been used subsequent to year-end to repay portions of the amounts outstanding under the French and United Kingdom credit facilities.

Net cash provided by operating activities for fiscal 2012 was $537 million, an increase of $218 million compared to the prior year, primarily driven by better management of inventory and vendor payments.

Total long term debt, including the current portion, was $5,329 million, an increase of $168 million from the prior year balance of $5,161 million, primarily due to the issuance of the $225 million Second Incremental Secured Term Loan due in fiscal 2018.

On January 29, 2013, the Company entered into a three year senior secured term loan facility agreement for an aggregate principal amount of €75 million ($102 million at February 2, 2013). The net proceeds, together with cash on hand, were used to repay the principal amount under the €126 million ($170 million at January 29, 2013) Spanish real estate credit facility.

On February 27, 2013, the Company entered into a five year senior secured term loan facility agreement for an aggregate principal amount of €48 million ($63 million at February 27, 2013).  The net proceeds, together with cash on hand, were used to repay the principal amount under the €61 million ($80 million at February 27, 2013) French real estate credit facility.

On March 25, 2013, the Company entered into a seven year senior secured term loan facility agreement for an aggregate principal amount of £263 million ($400 million at March 28, 2013) which was funded on March 28, 2013.  The net proceeds, together with cash on hand, were used to repay the principal amount under the £406 million ($616 million at March 28, 2013) United Kingdom senior and junior real estate credit facilities.

With the completion of the Spanish, French and United Kingdom refinancings, the company has no significant debt maturities until fiscal 2015.

Additional Information

A Form 10-K has been filed with the SEC today, which contains additional disclosure regarding fiscal 2012 results.

A Form RW has also been filed with the SEC today.  This filing contains the company’s request to withdraw the S-1 Registration Statement, due to unfavorable market conditions, and the company’s recently announced executive leadership transition.

¹A detailed description and reconciliation of EBITDA and Adjusted EBITDA, and management’s reasons for using these measures, are set forth at the end of this press release.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 873 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 660 international stores and over 160 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 68,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com.

Forward-Looking Statements

All statements that are not historical facts in this press release, including statements about our beliefs or expectations, are forward-looking statements. These statements are subject to risks, uncertainties and other factors, including, among others, the seasonality of our business, competition in the retail industry, changes in our product distribution mix and distribution channels, general economic factors in the United States and other countries in which we conduct our business, consumer spending patterns, our ability to implement our strategy, the availability of adequate financing, access to trade credit, changes in consumer preferences, change in employment legislation, our dependence on key vendors for our merchandise, political and other developments associated with our international operations, costs of goods that we sell, labor costs, transportation costs, domestic and international events affecting the delivery of toys and other products to our stores, product safety issues including product recalls, the existence of adverse litigation, changes in laws that impact our business, our substantial level of indebtedness and related debt-service obligations, restrictions imposed by covenants in our debt agreements and other risks, uncertainties and factors set forth in our reports and documents filed with the Securities and Exchange Commission (which reports and documents should be read in conjunction with this press release). In addition, we typically earn a disproportionate part of our annual operating earnings in the fourth quarter as a result of seasonal buying patterns and these buying patterns are difficult to forecast with certainty. Forward-looking statements speak only as of the date when made, and we undertake no obligation to update these statements in light of subsequent events or developmentsunless required by the Securities and Exchange Commission’s rules and regulations. Actual results and outcomes may differ materially from anticipated results or outcomes discussed in forward-looking statements.

# # #

For more information please contact:

Lenders and Note Investors:

Adil Mistry, Senior Vice President, Treasurer and Investor Relations  at 973-617-5841 or Adil.Mistry@toysrus.com

Media:

Kathleen Waugh, Vice President, Corporate Communications at 973-617-5888, 646-366-8823 or waughk@toysrus.com

Non-GAAP Disclosure of EBITDA and Adjusted EBITDA

We believe Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Investors of the Company regularly request Adjusted EBITDA as a supplemental analytical measure to, and in conjunction with, the Company's GAAP financial data. We understand that investors use Adjusted EBITDA, among other things, to assess our period-to-period operating performance and to gain insight into the manner in which management analyzes operating performance.

In addition, we believe that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of EBITDA and Adjusted EBITDA generally eliminates the effects of financing and income taxes and the accounting effects of capital spending and acquisitions, which items may vary for different companies for reasons unrelated to overall operating performance. We use the non-GAAP financial measures for planning and forecasting and measuring results against the forecast and in certain cases we use similar measures for bonus targets for certain of our employees. Using several measures to evaluate the business allows us and investors to assess our relative performance against our competitors.

Although we believe that Adjusted EBITDA can make an evaluation of our operating performance more consistent because it removes items that do not reflect our core operations, other companies, even in the same industry, may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-GAAP measures that other companies may use to compare the performance of those companies to our performance. The Company does not, and investors should not, place undue reliance on EBITDA or Adjusted EBITDA as measures of operating performance.

A reconciliation of Net earnings attributable to Toys “R” Us, Inc. to EBITDA and Adjusted EBITDA is as follows:

(a)  Represents litigation expenses recorded for certain legal matters.
(b) Represents the fees expensed to Bain Capital Partners LLC, Kohlberg Kravis Roberts & Co. L.P., and Vornado Realty Trust (collectively, the "Sponsors") in accordance with the advisory agreement.
(c) Asset impairments primarily due to the identification of underperforming stores and the relocation of certain stores.
(d) Represents the write-off of damaged assets and repairs from a hurricane that hit the east coast of the United States, store fires in Australia, an earthquake and resulting tsunami that hit the Northeast coast of Japan and other property losses, net of insurance claims.
(e) Represents the incremental compensation expense related to existing liability awards and the repurchase of awards by the Company upon termination.
(f) Represents costs incurred in conjunction with the acquisition of 70% ownership interest in Toys (Labuan) Holding Limited from Li & Fung Retailing Limited.
(g) Represents miscellaneous other charges consisting primarily of store closure costs, net gains on sales of properties and restructuring which were not individually significant for separate disclosure.
(h) Adjusted EBITDA is defined as EBITDA (earnings before net interest income (expense), income tax expense (benefit), depreciation and amortization), as further adjusted to exclude the effects of certain income and expense items that management believes make it more difficult to assess the Company’s actual operating performance including certain items which are generally non-recurring.  We have historically excluded the impact of such items from internal performance assessments.  We believe that excluding items such as Sponsors’ management and advisory fees, asset impairment charges, restructuring charges, impact of litigation, noncontrolling interest, net gains on sales of properties and other charges, helps investors compare our operating performance with our results in prior periods.  We believe it is appropriate to exclude these items as they are not related to ongoing operating performance and, therefore, limit comparability between periods and between us and similar companies.

Beginning immediately, expectant parents are able to create their Babies“R”Us Registry directly from WhatToExpect.com when visiting the site for advice throughout their pregnancy.  This is the first time the Babies“R”Us Registry will be available through an external channel beyond Babiesrus.com and Babies“R”Us stores.  WhatToExpect.com will also feature Babies“R”Us user reviews and suggested must-have products to provide moms- and dads-to-be with the inspiration and confidence they need when creating a baby registry. The top choice among expectant parents, the Babies“R”Us Registry, to date, has been used by more than 18 million parents. WhatToExpect.com and its mobile apps reach nearly 4 million parents and pregnant women.

“Babies“R”Us and What to Expect are among the first places a mom turns to when she finds out she is pregnant, and we are pleased to offer moms-to-be the convenience of our combined resources in one location,” said Peter Reiner, Senior Vice President, Marketing, Toys“R”Us, U.S. “We believe this partnership will enable us to broaden the reach of our Babies“R”Us Registry even further, and provide our customers even more comprehensive content about the journey of pregnancy and parenting from a trusted source.”

Additionally, the Resource Center on Babiesrus.com will begin featuring expert editorial content from WhatToExpect.com, including articles, videos and tips from Heidi Murkoff, the creator of the What to Expect When You’re Expecting pregnancy and parenting brand.  Topics will focus on both pre- and post-natal advice, including crib-training techniques, tips for bathing a newborn and diaper bag necessities, among other subjects. Babies“R”Us will use this content across its other channels, including on its social media sites and in its stores.

“What do expectant and new parents need – besides more sleep? They need information, support, reassurance, and realistic, practical preparation for the adventure that lies ahead. They also need a whole lot of baby products,” said Heidi Murkoff.  “That’s why our partnership with Babies“R”Us makes so much sense – between the What to Expect books, the What to Expect website and apps, and the most widely used baby registry, we’ll be an easy-to-access, one-stop source for busy, sometimes overwhelmed moms and dads.”   

The two brands will support the partnership with a comprehensive cross-promotional program, inclusive of digital advertising, social media and signage within Babies“R”Us stores nationwide.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 872 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

 About WhatToExpect.com

WhatToExpect.com, published by Everyday Health, Inc., is the online home to Heidi Murkoff’s globally recognized parenting and pregnancy brand, What to Expect®. Offering original content and innovative tools for pregnancy and parenting every step of the way, the digital reach is 4 million women through desktop and mobile, with a community activity every 1.5 seconds. Heidi Murkoff, author of the bestselling What to Expect ® series of pregnancy and parenting books, has helped guide more than 40 million families worldwide from conception through the toddler years and beyond. According to USA Today, this parenting book, known as the “Bible” to moms across the world, is bought by 93 percent of all expecting mothers who buy a guide. (Source: comScore)

Media Contacts:
Toys“R”Us, Inc.
Jennifer Albano
973-617-5632
Jennifer.albano@toysrus.com

Everyday Health, Inc.
Jennifer Perciballi, VP, Public Relations, WhatToExpect.com
(646) 728-9777
jperciballi@everydayhealthinc.com

Mr. Storch, 56, joined the company in February 2006 following its acquisition by an investment group consisting of affiliates of Bain Capital Partners LLC, Kohlberg Kravis Roberts & Co. (NYSE: KKR), and Vornado Realty Trust (NYSE: VNO). As Chairman of the Board, Mr. Storch will continue to provide strategic guidance and play a key role in its growth initiatives. 

The Toys“R”Us, Inc. Board of Directors said, “Jerry has done an exceptional job in rebuilding the company, while successfully leading it through an extremely difficult global economic environment. We are grateful for his leadership over the past seven years and for the strong foundation he has built for the future. Jerry has delivered some of the best financial results in the more than 60-year history of the company, including multiple years of achieving $1 billion or more in adjusted EBITDA. He has been tireless in his efforts to develop best-in-class e-commerce and omnichannel capabilities and in significantly expanding the development of proprietary and differentiated products. Under Jerry’s leadership, we rolled out the integrated store strategy around the world and made a number of strategic acquisitions. Most recently, in acquiring the majority stake in the company’s business in Southeast Asia and Greater China, he has provided the company with a long runway for growth abroad. We thank Jerry for his strategic repositioning of the business.”

“I am incredibly proud of what we have accomplished together over the past seven years,” said Mr. Storch. “The Toys“R”Us brand is stronger than ever due to the hard work and dedication of our talented team around the world. Looking to the future, we will always ‘Play to Win’.’’

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 872 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

# # #

The increasingly popular series, Octonauts, inspired by the beloved children’s books of the same name, follows the whimsical underwater adventures of brave Captain Barnacles Bear, swash-buckling Lieutenant Kwazii Cat and their expert medic, Peso Penguin, as the group sets out to explore the world’s oceans, rescue the creatures who live there and protect their habitats – above and below the waves. Produced by Silvergate Media with animation by Academy Award-nominated Brown Bag Films (“Doc McStuffins”), the series initially launched in the U.K. in 2010 before making its U.S. debut on Disney Channel in January 2012 to great ratings.

“The Octonauts franchise has already won the hearts of young U.S. fans who are eagerly anticipating the introduction of this preschool toy line so they can be among the first to recreate scenes from the popular series with its adorable and captivating characters,” said Jamie Uitdenhowen, Vice President, Divisional Merchandising Manager, Toys“R”Us, U.S. “We are thrilled to partner with Fisher-Price to launch this line of toys which will allow children to interact with their favorite undersea friends.”

Octonauts action figures, playsets and vehicles from Fisher-Price that will be available exclusively at Toys“R”Us stores nationwide and online at Toysrus.com include:

Octonauts Figure and Creature Pack Assortment

Whether on land or at sea, little oceanographers will love acting out scenes from their favorite Octonauts episodes with these adorable figures. From Captain Barnacles Bear to Lieutenant Kwazii Cat, each pack comes with an Octonauts character and a color-changing sea creature. Ages 3 years and up. Available beginning in early March.

Octonauts Deluxe Action Figure Rescue Assortment

Kids can take their favorite rescue scenes to the bathtub with Octonauts figures, animals and rescue tools. With two options to choose from – Barnacles with a Tunip water-squirter and a clamshell, or Kwazii with a water-squirting eel and a treasure chest – little ones are sure to be delighted when they see their creatures’ spots and stripes change color when placed in warm water. Ages 3 years and up. Available beginning in early March.

Octonauts Vehicle Assortment

Using their fleet of aquatic vehicles called GUPS, Octonauts explore new underwater worlds and save sea creatures from danger during every episode. Now, kids can create their own heroic underwater missions with Kwazii, Barnacles, Shellington and their vehicles. The assortment includes the super-fast, shark-inspired GUP-B, the versatile Manta Ray GUP-D and the extra strong GUP-C that mimics a whale. Each GUP includes its own unique activation features and an Octonauts character, color-change creature and tools that can be used to complete rescue missions. Ages 3 years and up. Available beginning in early March.

Octonauts GUP-A Vehicle Playset

Little adventurers can travel around Octonauts-style with the GUP-A Deluxe Vehicle Playset. Kids will love cranking the propeller to drive along the ground in a wavy motion or speed across water during bath time. The playset includes a Barnacles figure, angler fish, urchin, arm grabber, seaweed moustache and hook with rescue net. The vehicle can also store all pieces after playtime, making clean-up even easier. Ages 3 years and up. Available beginning in early March.

Octonauts Octo-Compass

Kids can easily navigate their own deep sea expeditions with help from the Octo-Compass. Featuring phrases from little ones’ favorite Octonauts characters, Barnacles, Kwazii and Peso, each compass comes complete with creature sounds and, of course, the Octo-alert to signal the start of a new mission. Ages 3 years and up. Available beginning in early March.

Octonauts Octopod Playset

Stationed at their home base, the Octopod, the Octonauts are ready to dive into action whenever there is trouble underwater. With this multi-level playset, young explorers can bring their own underwater adventures to life while having fun with the characters they love. Packed with over 10 play pieces, including Barnacles and Kwazii figures, a mini GUP-A vehicle, three collectible creatures, four rescue tools and the clip-on Octo-alert, intrepid tiny tots can send Octonauts down the slide to the Launch Bay or lower the rescue tools to retrieve injured sea creatures. 1 “AG13” button cell battery required (not included). Ages 3 years and up. Available beginning in May.

To download hi-resolution images, please visit: https://toysrus.sharefile.com/d/s1139624b80c403da.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 872 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

About Fisher-Price:

Fisher-Price, Inc., a subsidiary of Mattel, Inc. (NASDAQ:MAT) located in East Aurora, N.Y., is the leading brand of infant and preschool toys in the world. The company’s legacy of high quality toys has enhanced early childhood development for more than 82 years.  Some of the Company’s best-known “classic” brands include Little People^®, Power Wheels^®, View-Master^® and Imaginext^®. Fisher-Price is also a leading developer of baby gear products (infant swings, bouncers, high chairs), as well as a wide array of character-based toys inspired by high quality children’s programming such as Dora the Explorer™, Mickey Mouse Clubhouse and Thomas & Friends^®. The Company’s website, www.fisher-price.com, as well as its Facebook page, www.facebook.com/fisherprice provide valuable information and resources to parents and grandparents around the world.

About Silvergate Media

Silvergate Media is a highly creative TV Production and licensing company driven by big ideas and big collaborations. Formed in 2011, and with offices in New York and London, Silvergate develops world-class brands which inspire, entertain, educate and engage through innovative content, great products and strong partnerships. Among these brands are Peter Rabbit and Octonauts, two highly successful international properties for children.

About The Octonauts

The Octonauts is a Children’s TV programme, produced by Silvergate Media and animated by Brown Bag Films. The TV programme is based on the children’s books written by Vicki Wong and Michael Murphy of Meomi Design Inc.

The Octonauts follows an underwater exploring crew made up of stylized anthropomorphic animals, a team of eight adventurers who live in an undersea base, the Octopod, from where they go on undersea adventures with the help of a fleet of aquatic vehicles.

Brown Bag Films

Brown Bag Films^® are one of Europe’s most successful creative-led animation studios. Established in 1994, their Dublin-based headquarters have produced cutting-edge animation for the international market, bagging numerous awards along the way including two Oscar^® nominations for Give Up Yer Aul Sins (2002) and Granny O’Grimm’s Sleeping Beauty (2010).

Media Contacts:
Toys“R”Us, Inc.
Adrienne O'Hara
973-617-4383/ 646-366-8863
Adrienne.Ohara@toysrus.com

Nicole Hayes
973-617-4371/ 646-366-8862
Nicole.Hayes@toysrus.com

Toys“R”Us, Inc. has been based in New Jersey for 38 years and today has more than 4,000 employees statewide across 45 stores, regional offices, its corporate headquarters and the company’s largest retail distribution center in the country. Together, Toys“R”Us, Inc. and the Toys“R”Us Children’s Fund have a long history of giving back to the communities they serve by keeping kids safe and helping them in times of need.

“Hurricane Sandy brought unimaginable damage to our state, and the need for assistance in rebuilding lives is tremendous,” said First Lady Mary Pat Christie, who serves as Chair of the Fund.  “We are so grateful to Toys“R”Us for its ongoing commitment to New Jersey and for this generous donation that will help families in so many communities devastated by the storm.”

“On behalf of the thousands of Toys“R”Us employees who call New Jersey home, we are very proud to support the Governor and First Lady in their efforts to rebuild across the state in the aftermath of Hurricane Sandy,” said Jerry Storch, Chairman and CEO, Toys“R”Us, Inc.  “We take very seriously our responsibility to be a caring neighbor in the communities we serve, and hope this donation to the Hurricane Sandy New Jersey Relief Fund will help provide assistance and comfort to the many children and families who were impacted by this disaster.”

The donation to the Hurricane Sandy New Jersey Relief Fund adds to the company’s continuing efforts to help kids and families affected by the superstorm, which to date have included:

• An immediate $500,000 donation by the Toys“R”Us Children’s Fund to Save the Children, a global humanitarian organization, to support its work helping children and families in evacuation shelters in New York and New Jersey and to help distribute much-needed items, including hygiene kits, diapers and baby wipes. Toys“R”Us, Inc. also worked with Save the Children to create a dedicated registry of items needed in disaster situations. Customers may donate items by clicking here.
• In the aftermath of the storm, the company provided product donations of essential baby supplies in some of the hardest hit areas including Staten Island, New York and Toms River, New Jersey.
• To help spread Christmas joy to children impacted by Hurricane Sandy, Toys“R”Us, Inc. donated $25,000 worth of toys to the Marine Toys for Tots Foundation for distribution in the tri-state area. Toys“R”Us also worked with Toys for Tots to set up an online Wish List, which allowed customers to purchase toys for donation to affected families.
• Toys“R”Us, Inc. donated $10,000 to Newark Now’s annual “Brighter Holidays” event, which included assistance to families that were impacted by Sandy.
• Toys“R”Us, Inc. supported a charity initiative led by Nynell Langford, wife of Atlantic City Mayor Lorenzo Langford, to provide toys for children impacted by the storm’s devastation to the Jersey Shore.
• Toys“R”Us, Inc. donated $5,000 in gift cards through New York Governor Andrew Cuomo's Hurricane Sandy Relief effort to help provide toys for families in hard-hit areas of the state.

In addition, Toys“R”Us, Inc is helping its own employees impacted by Hurricane Sandy through the Geoffrey Fund, a company program that offers financial assistance in times of hardship.

About the Toys“R”Us Children’s Fund

The Toys“R”Us Children’s Fund is a public charity affiliated with Toys“R”Us, Inc., a company that unabashedly declares “We love kids!” The core mission of the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. Since it was founded in 1992, the Toys“R”Us Children’s Fund has contributed millions of dollars to qualified organizations that support that mission, including those providing disaster relief to children and families who are victims of large-scale crises. The Toys“R”Us Children’s Fund also provides grants to leading organizations that support children with special needs. Primary fundraising activities include the annual Toys“R”Us Children’s Fund Gala, a private, invitation-only event that showcases the work of the Fund and raises money to support its many beneficiaries. This annual benefit has raised $100 million since its inception in 1985 and is one of the largest single-night fundraising events held in New York City.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

Media Contacts:
Toys"R"Us, Inc.
Kathleen Waugh
973-617-5888
Kathleen.Waugh@toysrus.com

Katie Reczek
973-617-4381
Katie.Reczek@toysrus.com

For the month of December, the U.S. Domestic segment reported a comparable store sales decrease of 1.8%. The Learning toy category generated the strongest comparable store sales growth, offset by weakness in the Entertainment category, which includes electronics and videogame hardware and software. Total sales for the Domestic segment decreased 1.9%.

“We believe our December sales were impacted by softness in the overall markets for videogames, electronics, and toys, and by the uncertain economic environment in the U.S. and abroad,” said Jerry Storch, Chairman and CEO, Toys“R”Us, Inc. “Our team focused on optimizing margin, operating efficiently, and managing inventories during a period when the market and competitive intensity offered constrained sales opportunities. Additionally, the team innovated with programs to benefit the consumer, including driving a more integrated shopping experience between our e-commerce and store businesses through our enhanced Internet and omnichannel capabilities. Moving forward, we are committed to accelerating distinctive services for our customers both on the Internet and in our stores, and to driving differentiation in our product assortment.”

Internationally, in December comparable store sales declined 3.5% and total sales decreased by 4.1%, including a 1% unfavorable impact from foreign currency translation. Strength in Canada, China, and Southeast Asia was offset by economic weakness in Europe and Japan.

Adding in November results, which were impacted by Hurricane Sandy, quarter-to-date comparable store sales in the U.S.decreased 4.5% versus last year, while total sales decreased 4.7%. Internationally, quarter-to-date comparable store sales decreased 5.6%, while total quarter-to-date sales decreased 6.4%, including a 1.2% unfavorable impact from foreign currency translation. Canada, China, and Southeast Asia had the best results, offset by softness in Europe and Japan.

The month of December refers to the five-week period from November 25, 2012 to December 29, 2012, as compared to the five-week period from November 27, 2011 to December 31, 2011. Quarter-to-date refers to the nine-week period from October 28, 2012 to December 29, 2012, as compared to the nine-week period from October 30, 2011 to December 31, 2011.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world's leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 876 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand's flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products.Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

# # #

For more information:

Lenders and Note Investors Contact: Adil Mistry, Vice President, Treasurer and Investor Relations at 973-617-5841 or Adil.Mistry@toysrus.com

Media Contact: Kathleen Waugh, Vice President, Corporate Communications at 973-617-5888, 646-366-8823 or waughk@toysrus.com

To jump-start this year’s campaign, the Toys“R”Us Children’s Fund, a public charity affiliated with Toys“R”Us, Inc., provided a $250,000 grant to the Marine Toys for Tots Foundation. Also, to further demonstrate the company’s commitment to spreading holiday cheer to some of America’s most needy children, Toys“R”Us donated nearly $250,000 worth of toys to Toys for Tots.

“There’s no greater joy than watching a child tear the wrapping paper off of a present on Christmas morning with a smile that stretches from ear to ear. With more than 16 million children living in poverty in the United States, we approached our 2012 fundraising campaign determined to help Toys for Tots create that experience for the little ones who need it most,” said Sloane Lucas, Director, Corporate Philanthropy, Toys“R”Us, Inc. “The success of our holiday campaign exemplifies the true commitment of our employees and the generosity of our customers across the country to this program, which enabled us to provide toys to millions of children who might have otherwise gone without.”

Building on his decades-long history of spreading Christmas cheer to kids in need, NBA Legend Shaquille O’Neal – aka Shaq-A-Claus – joined the company for a fourth consecutive year to help encourage Toys“R”Us customers and fans to “Give Back with Shaq.” Additionally, Shaq-A-Claus made an appearance on the company’s official Facebook fan pages, Facebook.com/Toysrus and Facebook.com/Babiesrus, where he challenged social media-savvy customers to join him in making a difference.

“I’ve always loved stepping into the role of my favorite alter-ego to help kids in need during the holiday season. That’s why I’m thrilled to have partnered once again with Toys“R”Us – and so many others across the country – to put smiles on the faces of millions of children,” said Shaquille O’Neal. “I owe a Shaq-mongous thank you to all who donated. Shaq-A-Claus couldn’t have done it without you!”

Toys“R”Us Leveraged Toys for Tots Campaign to Bring Joy to Victims of Superstorm Sandy

Throughout the holiday season, Toys“R”Us continually sought opportunities to lend a hand to those less fortunate, including the many families affected by Superstorm Sandy. In the storm’s aftermath, the company provided its customers across the country the ability to donate toys through Shaq’s Santa Sack online at Toysrus.com/ToysforTots, which were specifically allocated to help ensure kids displaced by the storm in New York, New Jersey and Connecticut received gifts to open on Christmas morning.

To help spread awareness in the digital domain and encourage donations, the company once again teamed up with LivingSocial to provide its members the opportunity to make a monetary contribution to Toys for Tots, which Toys“R”Us then matched in toys – all of which were distributed to Superstorm Sandy victims. Through this effort, nearly $40,000 worth of toys were provided to little ones in the tri-state area.

Customers Encouraged to Pay it Forward in Local Communities, Hundreds of Good Samaritans Rose to the Challenge

In addition to the nine-week Toys for Tots fundraising campaign, the company implemented an all-new program during which its customers were encouraged to Give Back in their local communities. The company pledged to “pay it forward” each time someone paid off the balance of a layaway order at Toys“R”Us as an act of kindness, donating $200 worth of toys – the approximate average value of a layaway order created at Toys“R”Us – to the Marine Toys for Tots Foundation.

The Give Back program was met with overwhelming enthusiasm in Toys“R”Us stores across the country, with 794 layaway orders anonymously paid for in true holiday spirit by good Samaritans as an act of generosity and kindness. And, as a result of this program, the company provided Toys for Tots with an additional $158,800 worth of toys to help provide children in need across the country with gifts to open on Christmas morning.

As the largest retail partner in the history of the Marine Toys for Tots Foundation, Toys“R”Us has raised over $31.6 million and collected more than 3.75 million toys since the partnership began in 2004.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

About the Toys“R”Us Children’s Fund

The Toys“R”Us Children’s Fund is a public charity affiliated with Toys“R”Us, Inc., a company that unabashedly declares “We love kids!” The core mission of the Toys“R”Us Children’s Fund is to keep children safe and help them in times of need. Since it was founded in 1992, the Toys“R”Us Children’s Fund has contributed millions of dollars to qualified organizations that support that mission, including those providing disaster relief to children and families who are victims of large-scale crises. The Toys“R”Us Children’s Fund also provides grants to leading organizations that support children with special needs.

Primary fundraising activities include the annual Toys“R”Us Children’s Fund Gala, a private, invitation-only event that showcases the work of the Fund and raises money to support its many beneficiaries. This annual benefit has raised $100 million since its inception in 1985 and is one of the largest single-night fundraising events held in New York City.<

Media Contacts:
Toys“R”Us, Inc.
Adrienne O'Hara
973-617-4383
Adrienne.Ohara@toysrus.com

Kerry Smith
973-617-4380
Kerry.Smith@toysrus.com

WAYNE, NJ (December 13, 2012) – Toys“R”Us, Inc. is pleased to announce that its third quarter 2012 Lenders and Note Investors Conference Call to discuss the financial results of Toys“R”Us, Inc., Toys“R”Us – Delaware, Inc., Toys“R”Us Property Company I, LLC, and Toys“R”Us Property Company II, LLC has been scheduled for 1:00 p.m. ET on Tuesday, December 18, 2012. Participation in this call is limited to lenders under Toys“R”Us – Delaware, Inc.’s term loan credit agreement dated August 24, 2010 (as amended or supplemented, including by the joinder agreements dated May 25, 2011 and April 10, 2012), and to investors and bona fide prospective investors in Toys“R”Us – Delaware, Inc.’s 7.375% Senior Secured Notes due 2016, Toys“R”Us Property Company I, LLC’s 10.75% Senior Notes due 2017, Toys“R”Us Property Company II, LLC’s 8.50% Senior Secured Notes due 2017 and Toys“R”Us, Inc.’s 10.375% Senior Notes due 2017, 7.375% Senior Notes due 2018 and 8.75% Debentures due 2021.

Lenders, investors and bona fide prospective investors in the loans and notes set forth above are invited to join this call using the following dial-in information:

(888) 407-6729, domestic
(706) 679-8795, international
Conference ID #77495938

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

# # #

Savvy shoppers will also get incredible values each day leading up to Christmas, as well as the company’s Price Match Guarantee, helping them check off everything on their little one’s wish list and stretch their holiday budgets. In addition, with shipments of the season’s must-have toys arriving in stores every day through Christmas Eve, customers will find all of their favorites, including Nickelodeon^® Teenage Mutant Ninja Turtles items from Playmates, Bounce Bounce Tigger from Just Play^™, FurReal Friends^® Baby Butterscotch from Hasbro^® and tabeo^™ from Toys“R”Us.

“By extending our shopping hours in the days leading up to Christmas, customers can take advantage of around-the-clock shopping at Toys“R”Us stores nationwide for all of their gift-giving needs whenever is most convenient to them,” said Troy Rice, Executive Vice President, Stores and Services, Toys“R”Us, Inc. “In addition, with fantastic deals and discounts and the best in-stock position on the hottest toys, gift-givers won’t need to shop anywhere else to get those coveted presents under the tree just in time for Santa’s arrival on Christmas morning.”

Following are highlights of the deals and discounts available at Toys“R”Us stores nationwide from Sunday, December 16 to Saturday, December 22, while supplies last^**:

• FREE $15 Toys“R”Us Gift Card with ANY Disney^® Princess purchase of $75 or more
• FREE $15 Toys“R”Us Gift Card with ANY Lalaloopsy^™ purchase of $50 or more
• FREE LEGO^® Storage Case with ANY LEGO construction purchase of $50 or more – $13.99 value
• SAVE $20 plus get a FREE $10 Toys“R”Us Gift Card with ANY Nintendo^® 3DS or 3DS XL game system purchase
• SAVE $25 on two or more Nintendo Wii games priced $49.99 and up
• BUY ONE GET ONE 50% OFF ALL NERF^® items
• BUY ONE GET ONE 50% OFF ALL Crayola^™ arts and crafts
• BUY ONE GET ONE 40% OFF ALL video games priced $19.99 or less

In addition, to kick off the all-night shopping sessions, Toys“R”Us is holding a two-day sale from Friday, December 21 to Saturday, December 22, presenting budget-conscious consumers with the following select deals and discounts, among many others, available in stores nationwide, while supplies last^**:

• FREE $30 Toys“R”Us Gift Card with purchase of Kindle Fire HD 8.9”
• FREE $15 Toys“R”Us Gift Card and bonus FREE speaker pouch with purchase of a 4^th Gen Apple^® 16GB iPod touch
• FREE $10 Toys“R”Us Gift Card with the purchase of Meep!^™ Kids Tablet
• SAVE $25 on ALL LEGO City, Star Wars and Creator construction purchases of $100 or more
• SAVE $10 on Monster High^™ High School playset – Was $74.99, Now $64.99
• BUY ONE GET ONE 50% OFF select Mega Bloks^®
• BUY ONE GET ONE 50% OFF ALL K’NEX Angry Birds^™ and Mario^™ building sets

Last-Minute Online Shopping Solutions

For customers who prefer online shopping to holiday crowds, Toysrus.com offers the best and broadest assortment of toys, along with fantastic deals and enhanced omnichannel services such as “Buy Online, Pick Up In Store,” helping shoppers get that perfect present whenever, wherever and however is easiest for them. Online gift-givers waiting until the eleventh hour to complete their holiday shopping lists can choose “Buy Online, Pick Up In Store” through 2pm on Christmas Eve and pickup their items in-store the same day. Those looking to send toys to friends and relatives farther away can also designate an alternate person to pick up their order at any Toys“R”Us store across the country with “Family and Friends Pick Up.” 

In addition, orders placed by 3pm EST on Friday, December 21 are guaranteed to arrive by Christmas Eve with express shipping^***. eGift Cards can also be ordered at any time and make a perfect last-minute present sure to bring Christmas cheer to kids of all ages.

Toys“R”Us Times Square Stays Open 543 Straight Hours in the ‘City that Never Sleeps’

Toys“R”Us Times Square, the company’s international flagship location, opened its doors for 24/7 shopping at 7am on Sunday, December 2, and is keeping them open until 10pm on Christmas Eve, providing New Yorkers and visitors alike a record-breaking 543 consecutive hours to shop around the clock for all their gift-giving needs.

Toys“R”Us Times Square will offer the same great deals and savings as Toys“R”Us stores nationwide, as well as specialty services such as Personal Shopping and Corporate Sales, providing customers with one-on-one attention and expert assistance from a highly-trained staff to help pick out the right toy quickly and easily. In addition, gift-wrapping and shipping to local, national and international locations is also available.

For all the latest news about the 2012 Holiday Season at Toys“R”Us, visit “R” Holiday Press Room at http://www.toysrusinc.com/press-room/r-holiday-press-room/.

^*Toys“R”Us stores in Paramus, NJ, as well as Toys“R”Us Express and Outlet stores, will not be open 24 hours per day. The Toys“R”Us store in Dedham, MA will close at 6pm on Christmas Eve. All store hours can be found online at Toysrus.com/StoreLocator.
^**Quantities limited, no rain checks.
^***Applies to shipments to all addresses within the 48 continental United States. The shipping deadline for Alaska, Hawaii and Puerto Rico is December 17.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

# # #

Media Contacts:
Toys“R”Us, Inc.
Jennifer Albano
973-617-5632
Jennifer.Albano@toysrus.com

Alyssa Peera
973-617-5634
Alyssa.Peera@toysrus.com

Created by Ubisoft Quebec, Toys“R”Us^® Towers™ gives players the chance to step into the shoes of the newest employee at Toys“R”Us. They will be able to manage their own toy store by building and designing a variety of toy departments and attractions, such as creating a science toy department or even adding a Ferris wheel just like the 60-foot indoor Ferris wheel featured in the Toys“R”Us international flagship store in Times Square. As players amass experience and sales, they will progress through seven levels from trainee to Store Manager, all the way up to CEO. Players can get their friends involved by sharing resources and helping each other participate in weekly events or engaging in friendly competition to see who can rise to the top the fastest. Players can also choose to purchase the premium currency in the game, which can be spent on additional energy, premium toy departments, boosts and more. In the game’s name, “towers” refers to the levels of building and construction that users engage in to create the varying departments of their very own toy store.

By playing Toys“R”Us Towers, fans can receive real-world coupons for discounts redeemable at Toys“R”Us stores nationwide and on Toysrus.com.  Within the first hour of playing the game, users can earn a coupon for 15% off their next in-store or online purchase and can continue playing to earn even more savings to use at Toys“R”Us.* 

“We’re excited to partner with Toys“R”Us and bring a great game with real-world benefits to players with Toys“R”Us Towers,” said Chris Early, vice president of digital publishing, Ubisoft.  “Toys“R”Us Towers delivers a fun gaming experience that both social gamers and fans of the iconic toy store will enjoy, along with some incredible discounts at Toys“R”Us, just in time for the holiday season!”

 “Toys“R”Us Towers offers a unique way to receive savings at physical retail locations, and extends our brand to the social gaming community,” said Michael Scharff, senior vice president, new ventures, Toys“R”Us, Inc. “We’re pleased to partner with Ubisoft to engage our customers, including our more than 3.4 million Facebook fans.  Avid Toys“R”Us shoppers can now experience the excitement of building, managing and working in their very own toy store through this fun new game and be rewarded with great deals and discounts to use at our stores nationwide.”

For more information on Toys“R”Us Towers or to play the game, please visit: https://apps.facebook.com/toysrustowers

*Exclusions apply. See coupons for details.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Additional information about Toys“R”Us, Inc. can be found on Toysrusinc.com. Follow Toys“R”Us, Babies“R”Us and FAO Schwarz on Facebook at Facebook.com/Toysrus, Facebook.com/Babiesrus and Facebook.com/FAO and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.

About Ubisoft

Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide and has grown considerably through a strong and diversified lineup of products and partnerships. Ubisoft has offices in 26 countries and has sales in more than 55 countries around the globe. It is committed to delivering high-quality, cutting-edge video game titles to consumers. For the 2011–12 fiscal year Ubisoft generated sales of 1.061 billion euros. To learn more, please visit www.ubisoftgroup.com.

Toys"R"Us® Towers^TM  game © 2012 Ubisoft Entertainment. All Rights Reserved. The Towers logo, Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries.

Contacts:

Raha Bouda
Ubisoft Public Relations
raha.bouda@ubisoft.com

Toys“R”Us Public Relations
Meghan Kennedy
(973) 617-4807
Meghan.Kennedy@toysrus.com

Katie Reczek
(973) 617-4381
Katie.Reczek@toysrus.com

WAYNE, NJ (December 7, 2012) - Toys“R”Us, Inc. today reported financial results for the third quarter ended October 27, 2012.

Jerry Storch, Chairman and CEO, Toys“R”Us, Inc., stated, “Our primary focus during the third quarter was making strategic preparations for the important holiday season. We believe the new programs we've introduced such as Free Layaway, Price Match Guarantee, Hot Toy Reservation and our strengthened omnichannel offerings, including Ship from Store, have benefitted our customers and provided even more reasons to shop with us.  In addition, we are confident that our inventory levels of the must-have toys will provide us with a strong in-stock position in the weeks leading up to Christmas continuing to make Toys“R”Us the toy destination for families.”

“The team continues to focus on margin rate improvements, while effectively managing inventory levels and reducing expenses. This has resulted in a gain in operating earnings in the U.S. for each quarter of this year. The challenging economic environment in Europe and Japan continues to have a negative impact on operating earnings on an international basis.  However, we are pleased with the strong momentum from our locations in China and Southeast Asia where positive performance is helping to offset this weakness.” 

Third Quarter Highlights

•          Net sales were $2.6 billion, a decrease of 3.4% or $91 million versus the prior year. The decline in net sales for the quarter was primarily attributable to a decrease in comparable store net sales, as well as a foreign currency translation impact of $30 million. Comparable store net sales were down 4.1% in the Domestic segment, partially driven by the impact of this year's earlier layaway program (which defers the recognition of sales into the period when the customer picks up the order), as well as a somewhat less intensive promotional calendar during the quarter.  Comparable store net sales were down 4.6% in the International segment, reflecting weakness in Europe and Japan.

•          The Learning category continued to improve, generating net sales growth of 1.3%. The Entertainment category (including electronics, video game hardware and software) was down 7.0%, reflecting ongoing weakness in the global video game business. 

•          Gross margin as a percentage of net sales was 37.1%, an increase of 0.6 percentage points versus the prior year as a result of margin rate improvements within product categories and improvements in sales mix away from lower margin products. Within the Domestic segment, gross margin as a percentage of net sales increased 1.0 percentage point, while the International segment decreased by 0.2 percentage points versus the prior year. Gross margin dollars were $967 million, compared to $986 million for the prior year. Foreign currency translation decreased gross margin dollars by approximately $12 million.

•          Selling, general and administrative expenses (“SG&A”) decreased by $11 million to $962 million, compared to $973 million in the prior year.  The inclusion of our China and Southeast Asia business added $21 million to this year's SG&A, while the impact of foreign currency translation reduced it by $12 million.

•          Operating loss was $75 million, which was unchanged from the prior year.  The Domestic segment operating earnings increased by $9 million.

•          Adjusted EBITDA¹ for the quarter was $31 million, compared to $36 million in the prior year, bringing the Adjusted EBITDA to $298 million through the third quarter of fiscal 2012, compared to $305 million in the prior year.

•          Interest expense was $135 million, an increase of $29 million versus the prior year. The increase in interest expense was primarily due to the issuance of the senior notes due fiscal 2017, and the repayment of the outstanding principal amount on the company's senior notes due fiscal 2013, which included a make-whole premium of approximately $18 million.

•          Net loss was $105 million, compared to $93 million in the prior year.  The single largest element of this decline was the increase in interest expense due to the make-whole premium noted above.  Excluding the after-tax impact of the expenses associated with the refinancing in the quarter, the net loss would have been unchanged versus the prior year.

Liquidity and Capital Spending

The company ended the third quarter with approximately $2.3 billionof liquidity, including cash and cash equivalents of $399 million and unused available committed lines of credit of $1.9 billion.  Cash used in operating activities was $449 million lower than the prior year for the year to date, demonstrating the company's continued focus on managing working capital more efficiently. Long term debt at the end of the third quarter of fiscal 2012 (including current portions) declined by $387 million versus the same time last year.  Shareholders' equity was $261 million, up $51 million from the prior year.

The company's capital expenditure program is a key component of its long-term integration strategy for its toys and juvenile products businesses and its commitment to enhancing its systems. Through the end of the third quarter of fiscal 2012, the company invested $215 million primarily to finance construction of new stores, remodel existing stores (including conversions), as well as improve its information technology and logistics systems, compared to $266 million in the prior year.

Further information regarding the company's financial performance in the third quarter of fiscal 2012 is presented in its quarterly report on Form 10-Q, which was filed with the Securities and Exchange Commission on December 7, 2012.

About Toys“R”Us, Inc.

Toys“R”Us, Inc. is the world's leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 645 international stores and over 150 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz brand and sells extraordinary toys in the brand's flagship store on Fifth Avenue in New York City. With its strong portfolio of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it provides shoppers with a broad online selection of distinctive toy and baby products. Headquartered in Wayne, NJ, Toys“R”Us, Inc. employs approximately 70,000 associates annually worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need.

This press release, the other reports and documents that we have filed or may in the future file with the Securities and Exchange Commission and other publicly released materials and statements, both oral and written, that we have made or may make in the future, may contain “forward looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such disclosures are intended to be covered by the safe harbors created thereby. These forward looking statements reflect our current views with respect to, among other things, our operations and financial performance. All statements herein or therein that are not historical facts, including statements about our beliefs or expectations, are forward-looking statements. We generally identify these statements by words or phrases, such as “anticipate,” “estimate,” “plan,” “project,” “expect,” “believe,” “intend,” “foresee,” “forecast,” “will,” “may,” “outlook” or the negative version of these words or other similar words or phrases. These statements discuss, among other things, our strategy, store openings, integration and remodeling, the development, implementation and integration of our Internet business, future financial or operational performance, projected sales or earnings per share for certain periods, comparable store net sales from one period to another, cost savings, results of store closings and restructurings, outcome or impact of pending or threatened litigation, domestic or international developments, amount and allocation of future capital expenditures, growth initiatives, inventory levels, cost of goods, selection and type of merchandise, marketing positions, implementation of safety standards, future financings and other goals and targets and statements of the assumptions underlying or relating to any such statements.

These statements are subject to risks, uncertainties, and other factors, including, among others, the seasonality of our business, competition in the retail industry, economic factors and consumer spending patterns, the availability of adequate financing, access to trade credit, changes in consumer preferences, our dependence on key vendors for our merchandise, political and other developments associated with our international operations, costs of goods that we sell, labor costs, transportation costs, domestic and international events affecting the delivery of toys and other products to our stores, product safety issues including product recalls, the existence of adverse litigation, changes in laws that impact our business, our substantial level of indebtedness and related debt-service obligations, restrictions imposed by covenants in our debt agreements and other risks, uncertainties and factors set forth under Item 1A entitled “RISK FACTORS” of our Annual Report on Form 10-K filed on March 21, 2012, as well as our other reports and documents filed with the Securities and Exchange Commission. In addition, we typically earn a disproportionate part of our annual operating earnings in the fourth quarter as a result of seasonal buying patterns and these buying patterns are difficult to forecast with certainty. These factors should not be construed as exhaustive, and should be read in conjunction with the other cautionary statements that are included in this report. We believe that all forward-looking statements are based on reasonable assumptions when made; however, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, one should not place undue reliance on these statements. Forward-looking statements speak only as of the date they were made, and we undertake no obligation to update these statements in light of subsequent events or developments unless required by the Securities and Exchange Commission's rules and regulations. Actual results may differ materially from anticipated results or outcomes discussed in any forward-looking statement.

# # #

For more information please contact:

Kathleen Waugh, Vice President, Corporate Communications at 973-617-5888, 646-366-8823 or waughk@toysrus.com

Adil Mistry, Vice President, Treasury and Investor Relations at 973-617-5841 or Adil.Mistry@toysrus.com

¹ A detailed description and reconciliation of EBITDA and Adjusted EBITDA, and management's reasons for using these measures, are set forth at the end of this press release.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS