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LeapFrog and Scholastic Entertainment Announce First Software Publishing Agreement for the Award-Winning Leapster Learning Game System

Leapster Franchise to Include Critically-Acclaimed Scholastic Brands I SPY and Math Missions

EMERYVILLE, Calif., May 3 /PRNewswire-FirstCall/ -- LeapFrog Enterprises, Inc. (NYSE: LF), a leading developer of technology-based educational products, and Scholastic Entertainment (SE), a leading producer of quality, family-oriented media including feature films, home video, TV and software, today announced that LeapFrog would welcome SE as the first third-party publisher to create software for the best-selling Leapster(R) Learning Game System. Under terms of the agreement, SE will adapt its critically acclaimed software titles, I SPY Challenger(TM) and Math Missions(TM), for the popular Leapster handheld, which will then be distributed by LeapFrog and Scholastic through their respective channels. Both new Leapster/SE titles will launch in Fall 2005, with additional titles scheduled to debut in 2006.

"LeapFrog is a leader in the development of engaging and high-quality learning products that meet the highest standards for educational excellence," said LeapFrog President Jerry Perez. "As we continue to grow our business, partnering with industry and market leaders, such as Scholastic Entertainment, is an important part of our strategy to extend our learning promise and further grow the Leapster franchise."

"As Scholastic Entertainment continues its tradition of being a leading publisher of children's educational software, this partnership with LeapFrog was a natural fit," stated Alan Waldman, Vice President, Scholastic Software. "We are thrilled to be the first publisher to create products for the Leapster handheld, a product that helps kids learn while having fun on-the-go."

Leapster Breaks New Ground for On-the-Go Learning

The Leapster Learning Game System, the top-selling, award-winning handheld from LeapFrog, is the only educational option for parents seeking a portable gaming system that fully engages children to learn while they play. Introduced in 2003, the Leapster handheld has won dozens of industry awards including dual Toy of the Year (TOTY) awards in 2004 -- for the Most Innovative Toy and Best Educational Toy. The Leapster library includes a wide range of software titles that teach essential skills for preschool through fourth grade.

I SPY Challenger

Originally released in 2002 for the GameBoy Advance, I SPY Challenger is one of SE's most critically acclaimed titles, winning the prestigious Oppenheim Toy Portfolio Platinum Award, the Children's Choice Award and the Milia D'Or Award for Best Children's Software. Staying true to the best-selling I SPY brand, the Leapster software version includes fast-paced games in which kids must search captivating, interactive I SPY riddles for cleverly hidden objects. I SPY Challenger software for the Leapster handheld will hit retail shelves in October 2005 with a MSRP of $24.99.

Math Missions

The Math Missions software line, originally released in 2003 for the PC and MAC, included SE's first proprietary software products to feature a cast of original characters that introduce age appropriate math concepts in a real-world context. The Leapster handheld release of Math Missions includes many familiar faces from the original Math Missions CD-ROMS while introducing exciting new characters and environments. This new software title allows kids to experience the same skill-building fun on-the-go. An incredible combination of learning and fun, Math Missions will be available for the Leapster handheld in August 2005 for a MSRP of $24.99.

About LeapFrog Enterprises, Inc.

LeapFrog Enterprises, Inc. is a leading designer, developer and marketer of innovative, technology-based learning products and related proprietary content, dedicated to making learning effective and engaging for all ages, at home and in schools, around the world. Emeryville, California-based LeapFrog has developed a family of learning platforms that come to life with more than 100 interactive software titles, covering important subjects such as phonics, reading, writing, math, music, geography, social studies, spelling, vocabulary, and science. In addition, the company has created more than 35 stand-alone educational products for children from birth to 16 years.

LeapFrog's award-winning U.S. consumer products are available in six languages at major retailers in more than 25 countries around the world. The LeapFrog SchoolHouse curriculum programs are currently in classrooms across the U.S. with more than 200 interactive books and over 450 skill cards representing more than 6,000 pages of educational content.

About Scholastic Entertainment

Scholastic Entertainment (SE) is the entertainment and media division of Scholastic, the global children's publishing, education, and media company. A proven leader in the children's entertainment landscape, SE ranks as one of the foremost producers of quality, family-oriented television programming, feature films, videos, and web sites, and an award-winning licensor and marketer of children's properties worldwide. SE's production credits include such popular television series as the top-rated Clifford The Big Red Dog(R) (PBS KIDS(R)); the spin-off of this hit TV series, Clifford's Puppy Days(R) (PBS KIDS); the Emmy award-winning series I SPY (HBO Family) and Scholastic's The Magic School Bus(R) (TLC); as well as Dear America(R), The Royal Diaries(TM), Animorphs(R) and Goosebumps(R). This fall, SE's new series, Maya & Miguel(TM), debuted on PBS KIDS GO! In the feature film arena, SE has produced the critically-acclaimed movies Clifford's Really Big Movie, The Baby-sitters Club, The Indian in the Cupboard, Tuck Everlasting and The Mighty and is currently adapting the best-selling Philip Pullman trilogy, His Dark Materials, for the big screen with New Line Cinema. Additionally, SE serves as the exclusive licensing, merchandising and promotional representative for such prominent franchises as Home Movies(TM). SE has been recognized with the LIMA Award for Best Brand/Corporate License for its Scholastic Brand product line as well LIMA's Best Character License of the Year for Clifford The Big Red Dog. For more information, visit Scholastic's Webby award-winning web site at scholastic.com.

About Scholastic

Scholastic Corporation (Nasdaq: SCHL) is the world's largest publisher and distributor of children's books and a leader in educational technology. Scholastic creates quality educational and entertaining materials and products for use in school and at home, including children's books, magazines, technology-based products, teacher materials, television programming, film, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs, school-based book fairs, and school-based and direct-to-home continuity programs; retail stores, schools, libraries and television networks; and the Company's Internet site, www.scholastic.com.

NOTE: LEAPSTER is a registered trademark of LeapFrog Enterprises, Inc.

CONTACT: Stefanie Acken
BENDER/HELPER IMPACT (for Scholastic)
Stefanie_acken@bhimpact.com
+1-212-689-6360

Nadine Weber
Kaplow Communications (for LeapFrog)
Nadinew@kaplowpr.com
+1-212-221-1713

SOURCE LeapFrog Enterprises, Inc.
05/03/2005
CONTACT: Stefanie Acken of BENDER/HELPER IMPACT, +1-212-689-6360, or
Stefanie_acken@bhimpact.com, for Scholastic; or Nadine Weber of Kaplow
Communications, +1-212-221-1713, or Nadinew@kaplowpr.com, for LeapFrog
/Web site: http://www.scholastic.com
/Web site: http://www.leapfrog.com
(LF SCHL)

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding LeapFrog Enterprises, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.