Novelty, Incorporated is a vertically integrated product development and retail services company focused on delivering incremental retail profit through trend driven, high impulse consumer products. Headquartered in Greenfield, Indiana, the company employs approximately 400 employees in the United States and a similar number in its six China facilities.

The product development team is lead by the company’s founder and President, Todd Green. In 2005, Novelty introduced over 1,250 new items to the retail channel and obtained 440 copyrights. The company is expanding into a 20,000 square foot product development center to be completed in the first quarter of 2007.

Licensed merchandise is an important component of Novelty’s product line. Novelty holds both direct licenses and manufactures for licensees of all the top properties. Some of these include:

• Major studio and entertainment properties such as Superman from Warner Brothers, CARS from Disney/PIXAR and Shrek from Dreamworks Animation
• Rock ‘n roll properties headlined by AC/DC and The Rolling Stones
• Sports including NASCAR, NFL, MLB, NBA and Collegiate properties
• Evergreen licenses such as Dodge, Chevy, Care Bears and Real Tree
• Beverage properties from Miller, Coors and Grupo Modelo
• Trendy niche content from Happy Bunny, Napoleon Dynamite and Larry the Cable Guy

Novelty products are sold in multiple segments of distribution including the mass market, grocery, drug, dollar, convenience and ad specialty channels. Novelty complements its product line with a direct store delivery service team operating in the United States and Canada. In addition to direct store delivery, Novelty ships to customers through dedicated carrier, LTL and FOB China methods.

Novelty, Inc. works closely with two sister companies owned by Todd Green: Chi Luen and POP Novelty. Chi Luen provides printing services to both domestic and international companies. Novelty accounts for approximately one-third of Chi Luen’s total revenue. POP Novelty sells Novelty, Inc. items internationally to Australia, Europe and South America. POP also manufactures and exports consumer products out of China on behalf of its international retail and wholesale distribution clients. Combined sales for all three entities will exceed $140 million in 2006.