QUARTERLY REPORT January-March 2006

LACKLUSTRE EARNINGS – CONTINUED FOCUS ON PRODUCT DEVELOPMENT

REPORTING PERIOD JANUARY-MARCH 2006 • Net sales were SEK 232.8 million (237.9 m). • The operating loss was SEK 40.4 million (-35.9 m). • The loss after tax was SEK 47.0 million (-40.7 m). • EPS was SEK -8.39 (-7.28). SIGNIFICANT EVENTS DURING AND AFTER THE PERIOD • On 13 March 2006, BRIO signed an agreement with K'NEX of the US to make K'NEX BRIO's exclusive distributor of toys in North America from 1 June. The agreement should be seen from a long-term perspective and in connection with the agreement, the activities of the wholly owned BRIO Corp sales company will be closed down in the US. • On 2 May 2006, 15 employees in BRIO's storage handling department were given notice of dismissal of dismissal as a result of the current BRIO 2008 progress scheme. • The distribution agreement for Plantoys runs out at the end of this year and the distribution agreement for Dorel, which includes the Maxi Cosi and Quinny brands, runs until July this year. The agreements will not be renewed and the sales shortfall is estimated at around SEK 70 million. For further information, please contact Thomas Bräutigam, President and CEO thomas.brautigam@brio.net Tel +46 479 190 00