The Ohio Art Company Reports Operating Results for the Fourth Quarter and Year Ended January 31, 2007

BRYAN, Ohio, March 30  /PRNewswire-FirstCall/ -- The Ohio Art Company, (Pink Sheets: OART.PK), today announced operating results for the fourth quarter and for the fiscal year ended January 31, 2007.

Net product sales increased to $24,425,000 for the year ended January 31, 2007 compared to $19,827,000 for the year ended January 31, 2006. For the three-month period, net sales decreased approximately 11% from $5,153,000 for the quarter ended January 31, 2006 to $4,580,000 for the quarter ended January 31, 2007.

Net profit after taxes for the year ended January 31, 2007 amounted to $936,000 or $1.07 per share on 875,000 average shares outstanding compared to a net loss after taxes but before discontinued operations of $1,673,000 or $1.91 per share on 875,000 average shares outstanding for the year ended January 31, 2006. The sale of the Strydel injection molding division segment was completed during the first quarter of fiscal 2006 and resulted in a gain, including income from operations, of $1,088,000 for the year ended January 31, 2006. The impact of the subsidiary sale yielded a net loss after taxes and discontinued operations of $585,000 or $.67 per share for the year ended January 31, 2006.

The Company experienced a break-even point for fourth quarter ended January 31, 2007 with 875,000 average shares outstanding, compared to a net income after taxes and discontinued operations of $257,000 or $.29 per share, on 875,000 average shares outstanding for the quarter ended January 31, 2006.

Domestic Toy revenues rose approximately 47% during the year ended January 31, 2007, primarily driven by favorable performances of the Etch A Sketch(R), Magna Doodle(R), and K's Kids(R) branded product categories, coupled with the introductory year sales of the Doodle Doug(R) drawing toy. International Toy segment revenues were a disappointment, declining approximately 15% due to lower Magna Doodle(R) brand demand in the European market, while Canada, Australia, and New Zealand experienced increased results.

The Diversified Products segment once again reported flat shipments for the third consecutive year. Metal lithography volume which was lost due to the rise in popularity of digital imaging which, in turn, adversely impacted demand for tin sheets used in photographic film containers, was successfully replaced with specialty decorated tin sheet volume at improved gross margins thereby contributing to the division's profitability.

Established in 1908 and headquartered in Bryan, Ohio, The Ohio Art Company develops 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), Magna Doodle(R) and Doodle Doug(TM) and the K's Kids(R) brand line of infant and toddler stuffed toys. In addition, the company's Diversified Products Division manufactures lithographed products for the photographic, food container, and specialty premium markets.

The forward-looking statements contained in this release are based upon various assumptions, and certain risks and uncertainties could cause actual results to differ materially from those stated. The Company assumes no obligations to update any forward-looking statements contained in this release.

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

                                 Twelve Months Ended     Three Months Ended
                                 1/31/07     1/31/06     1/31/07    1/31/06

  Net Product Sales              $24,425     $19,827       4,580      5,153

  Income (Loss) Before Income
   Taxes                             960      (1,673)         24        283

  (Provision For) Benefit From
   Income Taxes                      (24)          0         (24)         0

  Income (Loss) Before
   Discontinued Operations           936      (1,673)          0        283

  Net Income (Loss) From
   Discontinued Operations             0       1,088           0        (26)

  Net Income (Loss) After
   Discontinued Operations           936        (585)          0        257

  Net Income (Loss) Per Share
   Before Discontinued Operations   1.07       (1.91)          0        .32

  Net Income (Loss) Per Share
   After Discontinued Operations    1.07        (.67)          0        .29

  Average Shares Outstanding         875         875         875        875


DATASOURCE: The Ohio Art Company



CONTACT:  Jeffrey L. Morris, Chief Financial Officer of The Ohio Art

Company, [phone]

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