LeapFrog 2004 Annual Report Download - page 12

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• Quantum LeapPad learning system (3rd to 5th grades). Our Quantum LeapPad learning system
incorporates design features intended to appeal to 3rd through 5th grade students. The entire LeapPad
library can be used with the Quantum LeapPad platform. The Quantum LeapPad learning system uses
our proprietary NearTouch technology as well as a “write-on” feature that allows students to write
directly on erasable transparent plastic pages. We believe this added feature makes the Quantum
LeapPad system effective for use with more complex math and science concepts. The Quantum
LeapPad series of books is developed in conjunction with our educational experts to focus on subjects
children are learning in school, such as science, social science, complex reading comprehension, upper
level math and the arts.
Aggregate sales of our LeapPad, LeapPad Plus Writing and Quantum LeapPad platforms, each of which
are based on our NearTouch technology and can work together with a significant majority of the same
interactive books, together with aggregate sales of the interactive books compatible with these three
platforms, accounted for approximately 56% of our total net sales in 2002, approximately 47% of our
total net sales in 2003 and approximately 37% of our total net sales in 2004.
Leapster Multimedia Learning System (ages 4 to 8)
The Leapster multimedia learning system is designed to teach kids in the manner in which they like to play.
Similar to handheld video game devices, the Leapster handheld allows children to play action-packed learning
games with backlit color animation using a multi-directional control pad and a touch-screen enabled by a built-in
stylus. In addition, the Leapster content also allows “players” to read electronic books, create works of art and
watch interactive videos. Our Leapster software titles include educational games featuring licensed characters
such as Disney Princesses, Dora the Explorer, SpongeBob SquarePants, and characters from movies such as
Finding Nemo, The Incredibles and Spider-Man; a digital art title; titles specifically designed for students in
kindergarten, 1st grade or 2nd grade; a Junie B. Jones journal title; educational titles focusing on phonics and
math; and titles featuring our interactive The Letter Factory and The Talking Words Factory videos. In Fall 2005,
we expect to launch our Leapster L-MAX system, which is our first entry into television-based entertainment and
education platforms. The Leapster L-MAX will use many of the software cartridges developed for the original
Leapster handheld, and will also offer new Leapster L-MAX software cartridges that have new features designed
to offer an enhanced screen-based learning experience.
Sales of our Leapster handhelds and related software titles, which were launched in Fall 2003, accounted for
approximately 6% of our total net sales in 2003, and approximately 16% of our total net sales in 2004.
Turbo Twist Handhelds: Turbo Extreme and Turbo Twist Spelling and Math versions (1st through
6th grades)
Our Turbo Twist handhelds let children twist, pound and press the handheld device while they learn
spelling, math, social studies and vocabulary. Using our proprietary technology, each Turbo Twist platform self-
adjusts as the child answers questions to deliver content appropriate for his or her individual skill level. Each
handheld was developed to reinforce the skills and information children learn in school. Each comes pre-loaded
with spelling, math, social studies or vocabulary questions. Content cartridges for math, spelling and social
studies for 1st through 6th grades are available at retail stores. In 2004, we introduced our Turbo Extreme
handheld that is compatible with grade-specific cartridges containing multiple learning categories.
iQuest Interactive Handheld (5th through 8th grades)
Our iQuest interactive handheld was initially created specially to assist children in studying for tests at the
middle school level. We have created outlines, review games and tips for over 250 major textbooks used in 5th
through 8th grade social studies, science and math classes. Each iQuest handheld comes pre-loaded with a 75,000
word pocket version of the Merriam-Webster dictionary and a cartridge with over 1,000 basic fact questions
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