Hello Kitty® Makes Her Debut at McDonald's® North America Along Side New Hasbro Transformers™ Beast Machines® Figures

For more than 25 years, Hello Kitty® has been bringing smiles to the faces of young people from around the world. Now, for the first time, the beloved character will team up with Transformers™ Beast Machines® -- one of Hasbro's newest additions to its line of classic Transformers brand toys -- at McDonald's restaurants across North America when the company launches its special Hello Kitty/ Beast Machines Happy Meal promotion on August 4.

"We're thrilled to bring Hello Kitty and her friends to McDonald's customers in the U.S. and Canada with this exciting event," said R. J. Milano, vice president, McDonald's U.S. Marketing. "This timeless character is the perfect addition to our roster of entertainment properties -- Hello Kitty appeals not only to our core Happy Meal customer but also twenty-somethings who loved her as a child and continue to love her. To add to the fun and excitement, we've paired Hello Kitty with Transformers toys to create a combination that's sure to spread smiles to our customers across North America."

The 3-week promotion will run through August 24 and feature a total of 18 toys giving young people the chance to collect nine different Hello Kitty toy designs and nine Transformers Beast Machines figures. The promotion also will include:

   -- Two color Happy Meal box designs - both featuring Hello Kitty and
      Beast Machines illustrations.
   -- Coupons with select toys -- one coupon for a free jumbo pencil at any
      SANRIO retailer packaged in the Hello Kitty Happy Meal, and a coupon
      for $3.00 off a minimum $15.00 purchase of a Beast Machines retail
      product packaged in the Beast Machines Happy Meal.
   -- Colorful, in-store Hello Kitty/Beast Machines signage, posters,
      banners and other point-of-purchase material at each participating
      McDonald's.

"Sanrio was built on the idea that a small gift can bring a big smile to a child of any age," said Bill Hensley, marketing director for Sanrio, Inc. "We're proud to team up with McDonald's -- a company that is known for bringing smiles to the faces of kids of all ages."

The Hello Kitty/Beast Machines promotion will be supported by an extensive, multi-faceted advertising and marketing campaign, featuring a comprehensive program of television, radio and print advertisements targeted to various markets throughout the U.S. and Canada.

"Simply put, kids love McDonald's Happy Meals, and they have loved the challenge of Transformers toys for more than 16 years," said Duncan Billing, Hasbro group executive for boys toys. "The Transformers toys let kids experience fun and fantasy as well as challenge them to make the change from one toy to another."

McDonald's is the largest global foodservice retailer, with nearly 27,000 restaurants serving over 43 million people each day in 195 countries. Approximately 85 percent of McDonald's U.S. restaurants are owned and operated by independent franchisees.

Sanrio develops and distributes a unique line of over 12,000 children's gifts, stationery and accessory items. Hello Kitty is the company's flagship character. President and CEO Shintaro Tsuji founded the company in 1960 based on the concept that a small gift can bring a big smile to a child of any age. Today there are over 120 Sanrio Surprises and Sanrio Giftgate stores throughout the United States as well as 4,000 other U.S. locations including toy stores and national chain stores. SANRIO's worldwide sales exceeded $1.2 billion in 1999.

Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its Playskool, Kenner, Tonka, Oddzon, Super Soaker, Milton Bradley, Parker Brothers, Tiger, Hasbro Interactive, Microprose, Galoob and Wizards of The Coast brands and products provide the highest quality and most recognizable play experiences in the world.

http://www.newscom.com/cgi-bin/prnh/19990916/MCDLOGO

SOURCE: McDonald's

Contact: Julie Monzo of McDonald's, 630-623-6049; or Dyann Hawkins of
Orsi Public Relations, for Sanrio, Inc., 323-874-4073; or Holly Ingram of
Hasbro, 513-579-4055