Aquatoy, Inc. Licenses AquaDisc to Aqua-Leisure Industries

License Agreement Brings Innovative New Pool Toys to Mass Market

SEATTLE, Washington -- January 10, 2003 -- Aquatoy®, Inc., leading manufacturer of innovative water throw toys, today announced a product licensing agreement permitting Aqua-Leisure Industries® to manufacture and distribute 3 of Aquatoys products. The terms within this agreement allow Aqua-Leisure to add Aquatoys signature products, the AquaDisc, AquaSkimmer 3 Pack, and Skimmer Hockey, to their line of pool toys. Aqua-Leisures distribution of Aquatoy products ensures expanded opportunities for these next generation water toys in a larger market.

Aquatoy, Inc. and Aqua-Leisure Industries finalized the product licensing agreement in the summer of 2002. The agreement allows Aqua-Leisure to manufacture and distribute Aquatoys patented water toys among their large line of products. Although Aquatoy will also continue to manufacture and sell the items, Aqua-Leisure will provide additional retail opportunities for the Aquatoy products. Aqua-Leisures production of Aquatoy products started in the fall of 2002 and is now starting to hit retail shelves.

Founded in 1970, Aqua-Leisure Industries has product placement throughout the US and in over 45 countries. This respected leader of the pool industry is recognized for their quality products such as SimpleSet® above ground swimming pools, Dolfino® professional quality dive gear, AquaCraze® pool games, and Swimschool®, the original learn to swim program. With the addition of AquaDisc, AquaSkimmer 3 Pack and Skimmer Hockey, Aqua-Leisure expands their line of products and continues to be Americas favorite swim gear supplier.

Aqua-Leisure is really excited to add the AquaDisc to our collection. It brings a whole new dimension to our pool game category and fits in perfectly with our long-term strategy of growing by adding unique, innovative, and patented products," says Steve Berenson, president of Aqua-Leisure Industries.

The AquaDisc and the AquaSkimmer are two of Aquatoys patented innovative water throw toys. Both products, created by Aquatoy president Wink Thorne, continue to grow in popularity for exploring fun in and on water. Skimmer Hockey is the first of Aquatoys water games and offers a new way to play the popular sport.

Aquatoy is very excited by the opportunity to license our products to Aqua-Leisure and expand the distribution of our innovative new products to a much wider market," says Aquatoy president Wink Thorne.

Aquatoy products can be purchased at many retailers including FAO Schwarz, Zany Brainy, Imaginarium, Brookstone and through the Highlights catalog. Theyre also available at specialty toy, pool and sporting goods retailers nationwide.

About AquaDisc
Designed strictly for underwater use, the flying saucer-shaped AquaDisc is a unique underwater throwing disc that uses advanced hydrodynamic technology. Made of durable plastic materials, measuring twelve inches in diameter and weighing one pound, the AquaDisc can travel as far as thirty feet underwater.

About AquaSkimmer
The AquaSkimmer is a precision designed soft rubber disk that zips across the waters surface in an exciting new way that puts even the best skipping stone to shame. Measuring six inches in diameter and weighing two ounces, the AquaSkimmer can travel up to 100 feet.

About Aquatoy, Inc.
The AquaDisc revolution began when inventor Wink Thorne was participating in a dolphin communication study. He spent hours in the dolphin tank using a bowling ball to play underwater catch with a dolphin named Joe. This inspired Thorne to create a toy that would enable people to play games underwater as well and he created the first AquaDisc prototype as part of his Senior Design project at Stanford University. Todays AquaDisc is the result of many years perfecting the product. Thornes unique, patented hydrodynamic technology achieves amazing performance below the waters surface. Aquatoy was founded in April 1999. Thorne holds 18 US patents.

Aquatoy offers demo videos of their products in action as well as a retail locator. Both are available at www.aquatoy.com. For more information call toll-free, 888-571-1609.

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