Hi Guys,here's a copy of the article from the weekend West...

Hi Guys,

here's a copy of the article from the weekend West Australian and another one from this morning.


QUOTE
FINANCE
Brainytoys sets out to play with the industry's big boys KATE EMERY

12 January 2008
The West Australian


After years of watching its shares languish, Perth toy maker Brainytoys believes it may have inked a company-making deal this week.

Days after acquiring US toy group Marshmallow Fun Company, Brainytoys says it is planning to become a major player in a $US60 billion ($68 billion) toy industry dominated by heavyweights Mattel and Hasbro Toys.

Operating out of an OConnor office where toys and prototypes jostle for space on every available surface, chairman Charles Mackinnon and chief executive Alex Aguero are setting their sights high, saying the latest deal to increase the companys US footprint is just the beginning.

"On a personal level Id like to think well start giving Hasbro and Mattel a scare," Mr Aguero said.

The company became the countrys only listed toymaker three years ago after a reverse takeover of Auto Enterprises, formerly Speedy Wheels.

Last year, Brainytoys halved its annual loss to $1.8 million but analysts have tipped a return to profit this year on the strength of recent acquisitions. Brainytoys shares closed up 0.5 at 19 yesterday, compared to 8.9 a year ago.

Brainytoys develops, makes and distributes games and toys based on existing cartoons, book or movies, including The Wiggles, Thomas the Tank Engine and DreamWorks Bee Movie.

This weeks deal is the latest step in a change of focus for the company, which has seen it acquire Hong Kong distribution partner Enertec Enterprises and, in the US, Reveal Entertainment. Its shares jumped more than 70 per cent on the back of the Reveal deal last year.

The company has also taken on former Hasbro president Larry Bernstein - the man widely credited as having grown Hasbro from a company with revenue of $US77 million in 1978 to a billion dollar giant and the worlds second largest toy company. Mr Bernsteins former second-in-command, Bob Finn, also joined the company last week as chief operating officer.

Mr MacKinnon said several "reasonably disappointing" years were behind the companys new mindset since mid-2006.

"While we had interesting new toy creations, we didnt have a distribution platform and thats the dilemma that faces many small inventors in the toy and games sector," he said.

He said the Marshmallow acquisition was attractive because the company had a great idea and a "company-making bunch of products" but lacked the logistics to maximise it. Marshmallow, founded on a simple "marshmallow blower" product, has an annual turnover of about $US4 million.

"It is the quintessential American thing of combining fun food with their propensity to be fascinated by guns and weapons," he said. "They couldnt satisfy customer demand, which is potentially off the scale if you promote it properly and they havent gone into mass retail at all."

With a soon-to-be acquired UK subsidiary business also planned to provide a springboard into the UK and European markets, Mr MacKinnon said Brainytoys had huge growth potential.

"Historically were doing about a $20 million turnover and through these pipelines were adding to the Brainytoys range of products, and hopefully growing each of the different businesses to become a growing US player," he said.

"Theres an opportunity because the industry is pretty skewed towards the major players and theres always scope for innovation and thats our formula - to really make the best of the distribution platform and the network that we have."

Mr Aguero said there was always the opportunity for small countries to grow "very, very fast".

"We want to be a major player in the toy industry with a worldwide market playpen for us to work in. Weve got a long way to go yet and we have substantial ambitions," he said.







QUOTE
FINANCE
Game on as Brainytoys set for UK play
KATE EMERY

14 January 2008
The West Australian


Perth-based toys company Brainytoys is expected to announce the acquisition of a new UK subsidiary today.

WestBusiness understands the company has acquired UK company Toyway, best known for the BBC TV Walking with Dinosaurs figures.

The move, intended to give the company a pipeline into the UK and European markets, is Brainytoys second in a week. Last week it unveiled a $US4 million ($4.5 million) purchase of US group Marshmallow Fun Company.

The OConnor toy company designs, manufacturers and distributes toys and games based on famous cartoons, movies and books.