SOURCE: Rocap Marketing Inc.

Rocap Marketing Inc.

February 24, 2015 06:30 ET

Spiral Toys Expands Business in Asia

LOS ANGELES, CA--(Marketwired - February 24, 2015) - Spiral Toys (OTCQB: STOY) announced today the expansion of its operations with a new entity called Spiral Toys Hong Kong Limited. The new Spiral Toys Hong Kong Ltd entity will act as a conduit to develop, manage and manufacture Spiral Toys products in Asia.

Spiral Toys Hong Kong (STHK) will leverage the relationships Spiral Toys has developed with the Asian manufacturing community to build new and existing product lines. The focus of the office will be to maximize cost savings and quality control through the production process to sell final goods to different partners. This in turn brings additional value for both Spiral and their partners.

STHK will give Spiral Toys the benefits of vertical integration into selling final products to customers. Selling final product will increase revenues and net margin on products coming to market in 2015.

"The Hong Kong expansion will give Spiral an advantage to decrease time to market in the product development cycle," said Spiral Toy's president and CEO Mark Meyers. "Working directly with engineering teams and production teams in Asia will give us the ability to advance technology quickly and prepare for mass production in a fraction of the time."

"Spiral has long-standing relationships with countless production manufacturers, and raw material and component suppliers throughout Asia. The development of a Spiral's Hong Kong entity utilizes these resources in the product development phase of producing and enhancing Spiral's manufacturing and large growth opportunities, " said Spiral CFO Robert Stewart. " Our Hong Kong entity also gives us the opportunity to sell finished products to our partners rather than just collecting a license royalty fee. The establishment of this direct office will launch us into the next phase of development and expand our reach as a company."

About Spiral Toys
Spiral Toys (OTCQB: STOY) is a California-based company dedicated to developing, marketing, and selling products and mobile applications in the mobile-connected space. Spiral has developed several technology platforms that enable it to acquire and engage consumers in the sale and marketing of physical consumer products and toys.

Spiral collects revenue on both the physical purchase of goods and sale of digital content through the Apple App Store and Google Marketplace. Founded in 2011 by a former senior executive with Disney and Sony, the company has developed an integrated hardware/software/cloud solution that enables mobile-connected entertainment.

Spiral's mobile-connected entertainment platform connects physical items to today's top mobile devices through wireless technologies, creating a unique interactive user experience. Spiral sells its products worldwide and is developing additional applications, based on its platform technology, for several different verticals within the entertainment industry. The company also acts as co-developer with major entertainment studios.

Website: http://spiraltoys.com/

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations for the performance of Spiral Toys. The terms "expects", "would", "will", "believes", and similar terms are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Spiral Toys in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Spiral Toys believes are appropriate in the circumstances. Many factors could cause Spiral Toys' actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risk factors and others relating to Spiral Toys that may cause actual results to differ are set forth in Spiral Toys' periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Spiral Toys' forward-looking statements. Spiral Toys has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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