LeapFrog 2005 Annual Report Download - page 12

FLY Pentop Computer
In Fall 2005, we launched our newest platform product, the FLY . The FLY Pentop Computer is an optical
scanning, audio-enabled digital pen that brings computer interactivity to the pen and paper experience. Using
special FLY paper, cards or other materials enabled for the FLY Pentop Computer, users can get homework help
in math or spelling, translate words into other languages, play games with interactive collectible playing cards,
compose music and more via real-time audio feedback as they write and draw. The FLY Pentop Computer is the
first consumer electronic device that gives users real-time audio feedback as they write with special FLY paper,
making what they write come to life. Our new FLY platform is designed for the “tween” and teen markets.
The FLY software library includes titles to span a variety of interests, learning needs and ages. For example,
FLY Through Spanish provides real-time English-Spanish word translations; FLY Through Math provides step by
step coaching on multiplication and division for grades 4 through 6; FLYball is an interactive baseball card
game; Batman: The Battle for Gotham City is an interactive strategy game; and the FLY Journal provides
interactive writing prompts and topics for consideration. In 2006, we plan on expanding our software offering to
include algebra and other homework helpers.
Stand-Alone Products
Our variety of stand-alone educational products are designed primarily for children who are too young to
use our platforms effectively. These stand-alone products help develop fine motor skills and color, sound and
letter recognition. These products are generally affordable and simpler to localize for foreign markets than our
platform and content suites. Some of our more popular stand-alone products include:
•Explorer Globe—an interactive, touch-sensitive globe utilizing our NearTouch technology designed for
older children and teens that introduces interesting facts about continents, countries, capitals, currency
and more.
•LeapStart Learning Table—a learning table designed for infants and toddlers to refine motor skills,
introduce letters and numbers and encourage development.
•Fridge Phonics Magnet Set—a magnetic letter set designed for preschoolers and kindergarteners that
teaches letter names, letter sounds and learning songs.
We are particularly proud that in 2005 our FLY Pentop Computer, Leapster L-MAX platform and Learn-
Around Playground, each of which were newly introduced in 2005, received Oppenheim Toy Portfolio, Platinum
Awards. In addition, the FLY Pentop Computer was the recipient of the 2005 Toy Industry Association Awards
for Most Innovative Toy, Best Educational Toy and overall Best Toy of the Year.
Our International Products
Our international consumer strategy includes the creation of LeapFrog products in foreign languages as well
as marketing English-language products as tools for learning English as a foreign language. As of December 31,
2005, our products have been marketed and sold in six languages, including Queen’s English, Spanish, French,
Japanese and German, and in more than 25 countries. We currently sell our LittleTouch LeapPad, My First
LeapPad and LeapPad platforms with localized content. Our Leapster platform is sold with localized English
content for the British, Australian, German and non-French-speaking Canadian markets. Some of our key infant
items such as the LeapStart Learning Table, Learning Drum and Alphabet Pal are also localized for markets
outside of the United States. In 2006, we plan to add French and Spanish versions of our Leapster learning
system.
We sell our LeapPad platform to the private education market in Japan through our relationship with
Benesse Corporation, a supplemental education materials company, which is currently distributing a co-branded
CoCoPad version of our LeapPad platform to preschool to 3rd grade level subscribers of its educational program.
5