Mega Bloks Inc., Announces Closing of Its Secondary Offering

MONTREAL— Mega Bloks Inc. (TSX: MB) announced today the closing of the secondary offering of common shares by affiliates of The Blackstone Group, one of its principal shareholders. The offering was led by Merrill Lynch Canada Inc. in an underwriting syndicate that included CIBC World Markets Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc.

The selling shareholders sold 7,187,500 common shares of the Company at a price of $18.60 per common share, for gross proceeds of $133,687,500. These amounts include shares sold pursuant to the exercise of the over-allotment option. The Company will not receive any proceeds from the sale of the common shares sold under the offering. The selling shareholders paid the underwriting fees; other expenses of the offering were paid by the Company.

Subsequent to the closing of the offering, the selling shareholders will hold 26.7% of the issued and outstanding common shares of the Company.

“We are extremely pleased with how Mega Bloks has performed and believe that management has done an excellent job of positioning the Company for long-term growth. While selling shares to realize on a portion of the value that the Company has created is part of our obligation to our own investors, we are pleased that we continue to be the Company’s largest shareholder and have the utmost confidence in the Company’s prospects,” said Howard Lipson, Senior Managing Director, The Blackstone Group.

The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to US persons without registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of securities in the United States of America.

About Mega Bloks Inc.

Mega Bloks Inc. creates fun, educational and high quality construction toys that inspire kids and parents to play and learn together. The MEGA BLOKS® system features basic and themed construction toys for boys and girls of all ages. Headquartered in Montreal, Mega Bloks Inc. is a global organization employing approximately 1000 people with sales in over 100 countries.

{MEGA BLOKS and the MEGA BLOKS logo are the property of Mega Bloks Inc.}.

Source: Mega Bloks Inc.
Website: www.megabloks.com