Report From The NPD Group Shows Consumer electronics Devices and Video Game Systems Are Becoming More Entrenched in Kids Lives

PORT WASHINGTON, NEW YORK, May 24, 2006 – On average, kids ages 4 to 14 are using consumer electronics (CE) devices six months earlier than they were in the 2005 study, according to The NPD Group’s recently released report, Kids and Consumer Electronics II. According to the report, both CE devices and video game systems are becoming more entrenched in the lives of kids today, with nine of the 11 CE devices measured in the study being used more today than in the past.The report, the sequel to last year’s highly regarded Kids & CE I, is the only comprehensive source for information on the impact CE devices are having on kids, giving manufacturers and retailers the information they need to gain a better understanding of kids’ habits and preferences for these products, and to measure how this has changed since the initial study.

Portable CE products are showing strong growth in usage and purchase intent, especially among older kids. Purchase intent for kids is highest for “hot ticket� items such as digital cameras, cell phones and portable video game systems, which are all leaders and/or big gainers in terms of kids’ personal ownership & usage.

Overall household ownership shows desktop PCs, DVD players, non-portable televisions and cell phones dominating, with digital cameras, portable digital music players and laptop computers gaining ground. In terms of personal ownership, more than twice the amount of kids personally own portable digital music players and digital cameras this year versus 2005, while cell phone ownership is up by 50 percent.

“Any business that markets or sells products to kids needs to be aware of the role of these CE devices in their lives,� said Anita Frazier, industry analyst, The NPD Group. “Today’s kids are digital natives whose activities are fundamentally different than previous generations, making the information within this report critical for more effective product development and marketing strategies.�

Methodology

The study is based on data from 3,540 completed Internet surveys among individuals age 25 and older with children ages 4 to 14 in their households. The survey data was weighted to represent this population.

About The NPD Group, Inc.

Since 1967 The NPD Group has provided reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,400 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their businesses. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, toys, video games, and wireless. For more information, visit www.npd.com.

Source: NPD Group, Inc.