99

Press Release, dated October 22, 2007, of Hasbro, Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

EXHIBIT 99

Hasbro Reports Strong Third Quarter Results

Highlights

·

Net revenues of $1.2 billion for the quarter, up 18% from a year ago;

·

Operating profit improved 27% to $209.7 million or 17.1% of revenue;  

·

Net earnings of $161.6 million, or $0.95 per diluted share;

·

North American segment net revenues were up 10% and International segment net revenues were up 33% in the third quarter;

·

Growth driven by TRANSFORMERS and MARVEL movie-related products, as well as strong performances from LITTLEST PET SHOP, BABY ALIVE, FURREAL FRIENDS, MY LITTLE PONY, NERF and board games;

·

During the quarter, the Company repurchased approximately 12.9 million shares of common stock at a total cost of $362.1 million.

Pawtucket, RI (October 22, 2007) -- Hasbro, Inc. (NYSE: HAS) today reported third quarter net revenues of $1,223.0 million, an increase of $183.9 million or 18% compared to $1,039.1 million a year ago.  The Company reported net earnings for the quarter of $161.6 million or $0.95 per diluted share, compared to $99.6 million or $0.58 per diluted share in 2006.  The 2007 results for the quarter include a favorable tax adjustment of $29.6 million or $0.17 per diluted share.  Excluding the impact of the favorable tax adjustment, 2007 net earnings for the quarter would have been $132.0 million or $0.78 per diluted share.  In addition, the 2006 quarter included an expense of $19.8 million or $0.09 per diluted share related to the Lucas warrants.

 “We are very pleased with our third quarter and year-to-date performance and we are well positioned for the all important holiday season,” said Alfred J. Verrecchia, President and Chief Executive Officer.  “Revenues were up 18% for the quarter and 25% year-to-date as the business continues to be strong both in terms of category and geographic performance.”

“Operating profit was up significantly for the third quarter to $209.7 million, an historical record for the Company and further validation that our strategy of focusing on our core brands is working,” Verrecchia concluded.

North American segment net revenues for the quarter were $822.7 million, an increase of $77.2 million or 10% compared to $745.5 million in 2006.  The growth in revenue is attributable to shipments of the TRANSFORMERS and MARVEL product lines, as well as growth in other Hasbro brands including FURREAL FRIENDS, LITTLEST PET SHOP, BABY ALIVE, MY LITTLE PONY, NERF, MONOPOLY, OPERATION and SCRABBLE.  The North American segment reported an operating profit of $134.0 million compared to $111.6 million in 2006.

International segment net revenues for the quarter were $374.0 million, an increase of $93.6 million or 33% compared to $280.4 million in 2006.  The revenues include a positive foreign exchange impact of approximately $21.7 million or 8%.  The results reflect shipments of the TRANSFORMERS and MARVEL product lines, as well as growth in other Hasbro brands including LITTLEST PET SHOP, MY LITTLE PONY, PLAYSKOOL, MONOPOLY, OPERATION and THE GAME OF LIFE.  The International segment reported an operating profit of $57.6 million compared to $43.2 million in 2006.  

“In light of our strong global cash flow generation and our expectations for the future, we continued to aggressively repurchase shares during the quarter,” said David Hargreaves, Executive Vice President and Chief Financial Officer.  “During the quarter, we repurchased a total of 12.9 million shares of common stock at a total cost of $362.1 million, leaving $240.6 million in the current authorization as of quarter end,” Hargreaves concluded.

The Company will web cast its third quarter earnings conference call at 8:30 a.m. Eastern Standard Time today. Investors and the media are invited to listen at http://www.hasbro.com (select "Corporate Info" from the home page, click on "Investor Information," and then click on the web cast microphone).

Hasbro is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech.  Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.

Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations concerning the Company’s future opportunities and ability to achieve its financial goals and may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "look forward," "may," "planned," "potential," "should," "will" and "would." Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements. Specific factors that might cause such a difference includ e, but are not limited to: the Company's ability to design, manufacture, source and ship new and continuing products on a timely and cost-effective basis, interest in and acceptance and purchase of those products by retail customers and consumers in quantities and at prices that will be sufficient to profitably recover development, manufacturing, marketing, royalty and other costs of products; economic and public health conditions in the various markets in which the Company and its customers and suppliers operate throughout the world, including factors which impact the retail market, disposable income or consumer demand for the Company’s products, the Company's ability to manufacture and deliver products, higher fuel and other commodity prices, higher transportation costs and potential transportation delays, currency fluctuations and government regulation; the concentration of the Company's customers; the inventory policies of the Company’s retail customers, including the concentration of the Compa ny's revenues in the second half and fourth quarter of the year, together with increased reliance by retailers on quick response inventory management techniques, which increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight and compressed shipping schedules; work stoppages, slowdowns or strikes, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner; the bankruptcy or other lack of success of one of the Company's significant retailers which could negatively impact the Company's revenues or bad debt exposure; the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to secure, maintain and renew popular licenses and the ability to attract and retain talented employees in a competitive environment; market conditions, third party actions or approvals and the impact of competition which could reduce demand for the Company’s products or delay or increase the cost of implementation of the Company's programs or alter the Company's actions and reduce actual results; the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization; and other risks and uncertainties as may be detailed from time to time in the Company's public announcements and SEC filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.

This presentation includes a non-GAAP financial measure as defined under rules of the Securities and Exchange Commission (“SEC”), specifically EBITDA. As required by SEC rules, we have provided reconciliation on the attached schedule of this measure to the most directly comparable GAAP measure. EBITDA (earnings before interest, taxes, depreciation and amortization) represents net earnings excluding, interest expense, income taxes, depreciation and amortization. Management believes that EBITDA is one of the appropriate measures for evaluating the operating performance of the Company because it reflects the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet, and make strategic acquisitions. However, this measure should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordan ce with GAAP as more fully discussed in the Company's financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

# # #

(Tables Attached)