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Trudy-Disney License Renewal

Trudy Corporation (OTC BB: TRDY) executed a binding letter agreement with Disney Licensed Publishing, an imprint of Disney Children's Book Group, LLC, New York, for the renewal of its non-exclusive license to publish Disney properties in its book and audio CD formats, published by its Studio Mouse imprint. The Company and Disney are operating under this interim binding agreement which will be superseded by the final definitive agreement which is expected to be executed in the near future.

The license territory includes distribution into the United States, certain of its Possessions and Territories, Canada, and on a limited basis the United Kingdom, Russia, India, China and 30 other countries. The agreement includes a 3 year distribution period for an expanded line of novelty book and audio CD’s with an educational editorial platform. The licensed characters include core properties such as Disney Princess and Winnie the Pooh, selected Disney Channel shows, as well as feature films including Disney/Pixar-branded titles such as "Finding Nemo," and Disney's own releases such as "Chicken Little." The license also includes Spanish language and bilingual rights for distribution in North America. The license renewal is effective January 1, 2006, expires on December 31, 2008 and provides for an inventory sell-off period in early 2009.

In July, 2003, the Company launched its initial Disney license with publication of 12 titles featuring assorted Disney core properties, allowing the Company to significantly expand its presence in the mass market with distribution to major national retailers. The successful sell-through of these titles set the stage for the current license renewal.

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only to the date hereof; Trudy Corporation disclaims any intent or obligation to update these forward-looking statements.

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