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OTCPicks Featured Company: Grand Toys International Limited (GRIN) Signs Term Sheet to Acquire Wham-O, Inc.

Grand Toys International Limited (NASD: GRIN) announced the signing of a term sheet to acquire 100% of Wham-O, Inc. from Cornerstone Strategic Management Limited. Cornerstone is company owned and managed by Raylin Hsieh, the wife of Grand Toys major shareholder, Jeff Hsieh. With the acquisition, Grand Toys saw an increase of 224.63% on Thursday.

The terms call for Grand Toys to pay Cornerstone cash consideration of US$35 million adjusted for liabilities of Wham-O and 100% of the shares of its wholly-owned subsidiaries Hua Yang Holdings Co, Ltd. and Kord Holdings, Inc. The liabilities between Grand Toys and their two subsidiaries will be written off at the closing of the transaction, which will be subject to due diligence, Board and shareholder approval, completion of a convertible bond financing to fund the purchase price, the absence of any material in Wham-O, definitive documentation of the transaction, and the fulfillment of all conditions precedent to the transaction.

“The new Board of Directors of Grand Toys, which was assembled in mid-2007, has been focusing on developing a new direction and strategy for Grand Toys to give the company a platform for growth” comments David Howell, CFO of Grand Toys. “We believe the acquisition of Wham-O represents a transformational opportunity for Grand Toys and it will become the key asset around which we will build our business. In addition, the divestiture of the low margin, non- core Hua Yang and Kord manufacturing businesses frees up significant working capital for the company and allows us to reduce substantially our bank debt, creating a much healthier balance sheet.”

Wham-O is a leading manufacturer of branded outdoor and leisure products with annual turnover of approximately US$50 million in fiscal 2007 (unaudited). Wham-O has designed and manufactured some of the most recognizable and popular branded toys in the world including: Frisbee®, Slip ‘N Slide®, Hula Hoop®, Morey®, Boogie® boards, Snow Boogie®, and BZ® Pro Boards™. The acquisition gives Grand Toys a prosperous platform on which to build world-class branded outdoor products, leisure products, and a specialty Toy Company with a plethora of recognized brands that have significant potential for growth in international markets.

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