The Ohio Art Company Reports Operating Results for the First Quarter of Fiscal 2007


BRYAN, Ohio, May 26, 2006 (PRIMEZONE) -- The Ohio Art Company (Pink Sheets:OART), today announced operating results for the first quarter ended April 30, 2006.

Net sales increased approximately 14% to $3,370,000 for the quarter ended April 30, 2006, compared to net sales, excluding the Strydel subsidiary discontinued operations, of $2,957,000 for the quarter ended April 30, 2005.

Both domestic and international toy shipments rose during the first quarter. Etch A Sketch(r) distribution improved at a major customer which accounted for the increase in domestic toy shipments. The Diversified Products division realized a double-digit percentage sales increase during the quarter. Orders for the new Doodle Doug(tm) drawing toy are encouraging with shipments to retail customers projected to commence late in the summer months.

Net loss after taxes for the first quarter of 2006 amounted to $523,000, or $.60 per share, on 876,000 average shares outstanding, compared to a net loss after taxes, but before discontinued operations, of $1,050,000, or $1.20 per share, on 876,000 average shares outstanding during the quarter ended April 30, 2005. The sale of the Strydel injection molding division segment was completed during the quarter ending April 30, 2005 and resulted in a gain of $1,131,000, including income from operations. The impact of the subsidiary sale yielded a net income after taxes and discontinued operations of $81,000, or $.09 per share, on 876,000 shares outstanding during the quarter ended April 30, 2005.

All three divisions experienced reduced operating losses during the quarter ended April 30, 2006 based primarily on increased gross margins (except the International division) and reduced operating expenses in each of the divisions.

Established in 1908 and headquartered in Bryan, Ohio, The Ohio Art Company manufactures and markets the world famous Etch A Sketch(r) drawing toy, as well as a complete line of toys that enhance and provide development, creativity, and positive reinforcement. Product lines include "Making Creativity Fun" activity toys, such as Etch A Sketch(r) and Magna Doodle(tm). In addition, the Company's Diversified Products Division manufactures lithographed products for the photographic, food container, and specialty premium markets.


                    THE OHIO ART COMPANY AND SUBSIDIARIES(a)
                    ---------------------------------------
                       (Thousands Except Per Share Data)

                                                Three Months Ended
                                                ------------------
                                                4/30/06    4/30/05
                                                -------    -------
 Net Sales                                      $ 3,370    $ 2,957

 Income (Loss) Before Income Taxes                 (523)    (1,050)

 Income Tax Expense (Benefit)                        --         --

 Income (Loss) Before Discontinued
   Operations                                      (523)    (1,050)

 Discontinued Operations                             --      1,131

 Net Income (Loss)                                 (523)        81

 Net Income (Loss) Per Share                       (.60)       .09

 Average Shares Outstanding                         876        876

 (a) Unaudited and subject to year end audit.


            

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