Lincolnwood, Ill. - January 27, 2004 - Publications International, Ltd. (PIL) announced today that the launch of Story Reader^TM, the first-ever portable electronic storybook reader for kids aged three to eight, was one of the most successful new product introductions of the 2003 holiday season. With total sales of nearly one million reader units and five million book units in the 4th quarter alone, Story Reader's initial success matches or exceeds product launches by market leaders in the fast-growing electronic learning category. Steady post-holiday sales of both Story Reader units and Story Reader book titles - which the company attributes to value pricing - suggest that Christmas is not necessarily over for Story Reader. PIL also announced today that an additional 27 new Story Reader titles will hit store shelves by July.

In addition to representing one of the most successful launches ever in the electronic learning category, the success of Story Reader also exceeds publishing industry benchmarks. The best-selling children's hardcover title of 2002 sold 726,543 units, according to Publisher's Weekly. Only six new children's books' unit sales exceeded 300,000 in 2002.

Story Reader's proprietary, patented technology brings young children's favorite stories to life. A narrator almost magically reads the book to them as each page is turned, while Story Reader adds sound effects and music to accompany the story. Children need only turn pages - no buttons or stylus are required. Story Reader recognizes what page the child is viewing, allowing them to control the experience. The lightweight, portable design features a hinged clamshell-style unit with carrying handle. A 24-page book based on Disney's "The Lion King" accompanied Story Reader, and ten other Disney titles were widely available for use with the unit at launch.

"We are thrilled with Story Reader's performance during the last quarter of 2003 and into 2004," said Kerry Cunnion, PIL Executive Vice President. "Its low price and high value in comparison with other products in the electronic learning category clearly led to its success."

Cunnion said PIL's mission is to get as many books and learning products into the hands of as many children as possible by providing quality products at affordable prices. Data on 2003 holiday toy sales suggest a strong consumer trend toward value. MasterCard International data show that stand-alone toy stores sales slipped 7.7 percent this year, leading industry observers to conclude that discount retailers appear to be increasingly dominating toy selling. Story Reader's MSRP of $24.99 clearly appealed to many parents who compared it to much higher-priced electronic learning products.

"For over three decades, we have offered consumers and our retail partners a strong combination of creativity, value and quality in children's book publishing, and have now successfully extended that formula to the electronic learning category - at a time when value is driving purchasing," Cunnion said. "Furthermore, our business model helps our retail partners achieve fair margins, while other manufacturers' pricing is out of synch with the retailer and end consumer."

Children's toy experts and reviewers have commented on Story Reader's appeal, citing its uniqueness, its technology features that "work like magic," but do not get in the way of the fun or learning, and its strong value. In 2003, Story Reader earned the National Parenting Center's Seal of Approval and was featured among iParenting Media's "2003 Great Holiday Products."

PIL is also unveiling the following three-title series with Bible and holiday themes:

"Since Story Reader's debut, we have received thousands of consumer requests for new titles, both through our customer support site, www.storyreader.com, and by telephone, further validating Story Reader's play-value among both parents and kids," Cunnion said. "We are thrilled to be able to triple our offering in the first half of 2004, and believe that this demand sets the stage for Story Reader's long-term success as a unique offering in the electronic learning category."

All 27 new titles are scheduled to hit store shelves by July 2004, and will be widely available at most major retailers in single-title and three-pack combinations. In addition to its Story Reader collection, PIL also holds more than 50 popular licenses in children's books - more than any other children's book publisher.