News Release

Spiral Toys Partners with Rosetta Stone in New Licensing Deal to Bring Innovative and Fun Language Learning Experiences to Children

Los Angeles, CA (December 16, 2015) Spiral Toys Inc. (OTCQB: STOY), a leading provider of mobile-connected, wireless entertainment technology, today announced that it has entered into a global content licensing agreement with Rosetta Stone Inc. (NYSE: RST), a world leader in technology-based learning solutions that is dedicated to changing people’s lives through the power of language and literacy education. The agreement provides Spiral Toys with rights to content assets related to the Rosetta Stone Kids portfolio of products, which are designed to help make learning enjoyable and interactive for young children.

"This partnership is a demonstration of the confidence a major global brand like Rosetta Stone has in our ability to build unique and fun interactive digital experiences around physical products," commented Spiral Toys’ CEO Mark Meyers. "We are proud to work with the renowned industry leader when it comes to learning a new language. In the coming year, we’ll tap into their existing assets and technology and use them to build engaging and entertaining experiences for children to help make education fun and interactive."

"Teaming up with Spiral Toys presents a unique opportunity for us to leverage the innovative and trusted technology and educational content that Rosetta Stone is known for by licensing it to an entrepreneurial company that is designing smart products in the mobile-connected space," said John Hass, Interim CEO, Rosetta Stone. "The future integration of our content into their products will help us continue to expand our reach in a way that makes sense for us and supports our business strategy, and it’s a great example of how we’re finding new, creative ways to work with partners."

Spiral Toys expects to introduce these new co-branded offerings into its product lineup in 2016. These will incorporate Rosetta Stone’s trusted technology and education content into novel children’s products that offer interactive game play between physical toys and mobile apps. Additional details will be made available in 2016.

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About Spiral Toys

Spiral Toys (OTCQB: STOY) is a California-based company with a business, founded by a former senior executive of Disney and Sony, focused on developing and marketing products and mobile applications in the mobile-connected space. Spiral’s mobile-connected entertainment platform connects physical items to today’s top mobile devices through wireless technologies, creating a new kind of interactive user experience.

Spiral sells its products worldwide, and is developing additional applications based on its platform technology for several different verticals within the entertainment industry. Spiral collects revenue on both the physical purchase of goods and the sale of digital content through Apple’s App Store and the Google Marketplace. The company also acts as co-developer with major entertainment studios. For more information, visit

About Rosetta Stone

Rosetta Stone Inc. (NYSE: RST) is dedicated to changing people's lives through the power of language and literacy education. The company's innovative, personalized language and reading programs drive positive learning outcomes in thousands of schools, businesses, government organizations and for millions of individual learners around the world.

Founded in 1992, Rosetta Stone pioneered the use of interactive software to accelerate language learning and is widely recognized today as the industry leader in providing effective language programs. The company's cloud-based programs allow users to learn online or on-the-go via tablet or smartphone, whether in a classroom, in a corporate setting, or in a personal learning environment. Rosetta Stone is also a leader in the literacy education space, helping millions of students build fundamental reading skills through its Lexia Learning 2

division. Additionally, the company's Fit Brains business offers personalized brain training programs developed by neuroscientists and award-winning game designers to be fun and help keep your brain sharp.

Rosetta Stone is based in Arlington, VA, and has offices and operations around the world. For more information, visit "Rosetta Stone" is a registered trademark or trademark of Rosetta Stone Ltd. in the United States and other countries.

Forward-Looking Statements

All statements in this press release that are not based on historical fact are "forward-looking statements." The terms "expects", "would", "will", "believes", and similar terms are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Spiral Toys in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Spiral Toys believes are appropriate in the circumstances. Many factors could cause Spiral Toys’ actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risk factors and others relating to Spiral Toys that may cause actual results to differ are set forth in Spiral Toys’ periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at These factors should be considered carefully, and readers should not place undue reliance on Spiral Toys’ forward-looking statements. Spiral Toys has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media Contacts:

Glenn Mandel, Spiral Toys

760-798-1563 |

Michelle Alvarez, Rosetta Stone

703-387-5862 |

Spiral Toys Investor Relations:

Michael Koehler, Liolios

949-574-3860 |

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Rosetta Stone PR'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.