March 01, 2008

Dear Valued Retailer,

In keeping with the PlanToys, Inc. primary commitment to ultimate consumer safety, we feel it is of utmost importance to communicate the details of our company’s choice to voluntarily recall our classic toy Penguin. This decision was made in response to an isolated incident by a single customer when the toy Penguin’s head fell off. There were no associated injuries.

Our first step was to discontinue sales while we evaluated the situation. Within one hour of receiving notice from the customer we stopped shipping Penguins, and we began contacting retailers asking them to remove the toy Penguin from their shelves.

Next, we submitted the Penguin for re-testing and it continued to meet and exceed the same stringent standards that it had been subjected to before being placed on the market. In spite of these internationally accredited and documented safety tests, we agree with our concerned customer and feel a moral responsibility to recall the product.

Within the next 14 days you will receive a poster to place in your store showing a picture of the Penguin along with instructions for obtaining a refund.

In the meantime, please encourage your customers to return the Penguin for a full refund through one of the following options:

• Returning the Penguin to your store so that you can return it to us. Once you have accumulated, three Penguins, please return them to PlanToys using freight collect. Please include your store name so we can credit your account.

• Returning the Penguin directly to PlanToys using freight collect (“paid by recipient”) for a full refund. Please remind consumers to send their name and address for refund check.
• Contacting PlanToys via phone (866) 517-7526 to request a pre-paid, pre-addressed shipper to return product for a full refund.
• Contacting PlanToys via website at www.plantoys.com/usa/prepaidmailer to request a pre-paid, pre-addressed shipper to return product for a full refund.

Please send returns to our office address (not the warehouse) for proper processing:

PlanToys, Inc.
465 Fairchild Drive, Suite 223
Mountain View, CA 94043

For the past 26 years, our company culture has been dedicated to designing and building toys that are Green, Safe and Smart. Please know we are committed to offering you only the highest quality toys. Thank you for your support as we work together for the safety of our children.

If you have any further questions, please do not hesitate to call me directly at (866) 517-7526.

Sincerely,

Nittaya Zeugfang
President
Plan Toys, Inc.


PlanToys, Inc. 465 Fairchild Drive, STE 223, Mountain View, CA94043, Tel: 1-866-517-7526, Fax: 650-968-4947

Email: info@plantoysinc.com Website: www.plantoysusa.com