10.12.2004 ET

(CSRwire) El Segundo, Calif. - As part of its ongoing commitment to social responsibility worldwide, Mattel, Inc. [NYSE: MAT] today issued its first Corporate Social Responsibility (CSR) Report.

The purpose of the report, which was produced in accordance with the Global Reporting Initiative (GRI) guidelines, is to communicate Mattel's efforts in ethical manufacturing, philanthropy and sound corporate governance practices. The report provides context on the progress of Mattel's worldwide programs, highlights key performance indicators (product integrity, ethical sourcing, health and safety, valued workforce, philanthropic activities and environmental responsibility), creates a vehicle for stakeholder dialogue and encourages others in the toy industry to follow Mattel's lead.

The report details Mattel's performance with regard to governance and management systems, performance indicators, environmental responsibility and philanthropy and community involvement.

"We work diligently to be financially strong, socially responsible, respectful of our planet and lifelong partners to the children who play and learn with our toys," said Robert A. Eckert, Chairman and Chief Executive Officer, Mattel, Inc. "As the industry leader, we know that how we achieve success is just as important as what we achieve. Our commitment to leadership brought us to the decision to create this comprehensive report, and provide even more transparency into our manufacturing processes."

With the launch of its Global Manufacturing Principles (GMP) in November 1997, Mattel became one of the first consumer products companies to employ independent monitoring of its manufacturing facilities and make findings available to the public, and continues to be the only toy company to utilize such a program. Mattel's GMP forms the cornerstone of the company's ongoing commitment to responsible manufacturing practices around the world by seeking to ensure that wages, working and living conditions, and employee access to management, are just and fair, as well as to assure protection of the environment.

With the release of its CSR report, Mattel also announces that effective immediately, the Mattel Board of Directors will provide oversight of the company's Corporate Social Responsibility initiatives by adding Corporate Social Responsibility to the topics addressed by the existing Nominations/Corporate Governance Committee. The committee will be renamed the Governance and Social Responsibility Committee.

Highlights from the report include:

• Mattel is one of the only consumer products companies, and the only company in the toy industry, to have an independent monitoring program, with reports published for public access giving transparency into the manufacturing process.
  
• The development, implementation and success of Mattel's manufacturing code, which provided a framework for the International Council of Toy Industries' CARE Process now being considered by others in the toy industry.
  
• In 2003 alone, Mattel provided more than 100,000 employee training hours on health and safety issues.
  
• From 2000 to 2003, Mattel's Lost Day Incident Rate decreased 43 percent in its owned and operated facilities.
  
• Mattel's global online learning initiative offers 150 business and professional development courses to employees worldwide.
  
• Mattel's ethical business and governance practices are recognized by top organizations, such as Dow Jones Sustainability Index (DJSI), FTSE4Good and GovernanceMetrics International (GMI).
  
• In 2003, Mattel and the Mattel Children's Foundation contributed more than $14 million in cash, products and services to myriad organizations around the world.
  • These donations included more than 1 million toys, with a retail value of approximately $8 million, to 3,000 children's programs, group homes, hospitals and other non-profits.
  
  
• Since 1998, the Mattel Children's Foundation has contributed $25 million to the Mattel Children's Hospital at UCLA - the largest single gift made by the Foundation since its founding in 1978 and one of the largest gifts ever made to a children's hospital in the United States.

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