• Consolidated net sales up 18% in Q4 and 12% full year
• Toys net sales up 21% in Q4 and 12% full year
• EBITDA up 33% in Q4 and 25% full year

MONTREAL, March 1, 2013 /PRNewswire/ - MEGA Brands Inc. (TSX: MB) announced today its financial results for the fourth quarter and full year ended December 31, 2012. (All figures are expressed in US dollars.)

Fourth quarter 2012 consolidated net sales increased 18% to $127.5 million compared to $108.5 million in the corresponding 2011 period.

• Sales were up 21% in Toys product lines and 1% in Stationery & Activities.
• On a geographic segment basis, North American sales rose 22 % and International sales were up 7%.

Earnings before interest, taxes, depreciation and amortization (''EBITDA'') increased 33% to $13.9 million compared to $10.4 million in the fourth quarter of 2011. EBITDA is a supplementary financial measure.

Net earnings were $4.0 million or $0.24 per basic share ($0.01 per diluted share), compared to $0.2 million or $0.01 per basic share (loss of $0.21 per diluted share) in the same 2011 period.

Full year 2012
For 2012, consolidated net sales increased 12% to $420.3 million compared to $376.8 million in 2011.

• Sales increased 12% in Toys product lines and 9% for Stationery & Activities.
• On a geographic segment basis, sales were up 20% in North America and down 4% in international markets.

EBITDA increased 25% to $49.2 million compared to $39.2 million in 2011. Net earnings were $16.6 million or $1.01 per basic share ($0.84 per diluted share), compared to $8.3 million or $0.51 per basic share ($0.46 per diluted share) in 2011.

Management's comments
''MEGA Brands achieved a solid fourth quarter in 2012, with higher sales, gross margin, profitability and cash flow compared to the same period in 2011,'' said Marc Bertrand, President and Chief Executive Officer. ''Our brands and our financial position continue to strengthen, and we will continue to invest in product development and to increase efficiency and manufacturing capacity at our Montreal facility.''

''Looking ahead, we expect continued sales growth based on our momentum in the marketplace and positive feedback on our product lines at recent toy fairs in Asia, Europe and North America,'' concluded Marc Bertrand.

Conference Call
A conference call will be held at 9:00 a.m. today to discuss the results and business outlook. Participants may listen to the call by dialing (514) 807-9895 or 1 (888) 231-8191. For those unable to participate, a replay will be available until March 8, 2013. The replay phone number is (514) 807-9274 or 1 (855) 859-2056, access code 87704752.

About MEGA Brands
MEGA Brands Inc. is a trusted family of leading global brands in construction toys, games & puzzles, arts & crafts and stationery. They offer engaging creative experiences for children and families through innovative, well-designed, affordable and high-quality products. Visit http://www.megabrands.com for more information.

The MEGA logo, Mega Bloks, Rose Art, MEGA Puzzles, MEGA Games and Board Dudes are trademarks of MEGA Brands Inc. or its affiliates.

MD&A Filing
This press release should be read in conjunction with the Corporation's Management's Discussion and Analysis (the ''MD&A'') as well as the audited consolidated financial statements and notes for the years ended December 31, 2012 and 2011. The Corporation will file these documents today via SEDAR. The MD&A, financial statements and notes will be posted today on the Corporation's Web site.

Use of Supplementary Financial Measures
The Corporation reports its financial results in accordance with International Financial Reporting Standards (''IFRS''). However, the Corporation believes that certain non-IFRS measures provide useful information to investors regarding its financial condition and results of operations. A reconciliation of supplementary financial measures with IFRS financial statements is provided in the Corporation's MD&A for the year ended December 31, 2012, which is available at www.sedar.com and on the Corporation's Web site.

Forward-Looking Statements
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities laws These statements represent the Corporation's intentions, plans, expectations and beliefs. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking information and statements are based on a number of assumptions and involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by them, including, but not limited to risks, assumptions and uncertainties described in the Corporation's MD&A for the year ended December 31, 2012, which are available at www.sedar.com and on the Corporation's Web site. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law.

SOURCE MEGA BRANDS INC.