THE NEWSROOM

Innovation Fund LLC
Metropolitan Tower
146 West 57th Street, suite 33D
New York, NY 10019

Contact: Barbara Carver
Phone: 516-921-3100

For Immediate Release

DONALD SPECTOR, CHAIRMAN OF INNOVATION FUND LLC, ANNOUNCES PLANS TO SELL THE CLASSIC TOY LINE - BALZAC

“Balzac has had its ups and downs over the past decade and has made money and put smiles on millions of faces”

Balzac Balloon Ball blazed on the toy scene with Mary Rodas, its 14 year old Vice President in the early 90’s selling millions of units in the United States as well as overseas. It won awards for packaging, for the uniqueness and more importantly won the hearts of millions of users. A unique cover for balloons, which had a sense of weightlessness, it was developed into a large range of products. Balzac was licensed to Hasbro twice, licensed to Wham-O, the subject of a short-lived bankruptcy and the favorite in malls, kiosks, FAO Schwarz (in its heyday) as well as theme parks.

Donald Spector, inventor of Balzac, as well as over 300 other patents explains, “While we are still in talks with a major retailer to reintroduce Balzac once again, Innovation Fund has now moved on to other businesses outside the toy industry. We have several major lines of products in the toy industry but have been reluctant to introduce them in this environment without the forceful Toys R Us and other retailers that used to be the underpinning of a national advertising campaign. I think the opportunity still exists for children’s products to become huge hits when they fall into health and beauty, as well as traditional toys, or where they cross over to other lines of distribution. However, the conventional toy industry is definitely in a reforming stage. I would not be surprised to see Chinese manufacturers become more of a factor in the industry in the next several years and the marketing companies take a second place,” said Spector.

“When Balzac Inc. went into Chapter 11 for a year the press had a field day. Here was a brand that broke every rule, made a lot of money and now was perceived to be in trouble. In fact, we were stuck in a bad licensing situation which we got out of. Ironically the company made a lot of money selling stock in a public company in which it had a large interest. This combination paid the investors off in full with interest and became a cash cow, which it had been for many years. You can’t ask more of a brand than Balzac has delivered,” said Spector.

“Nevertheless, we have put out some feelers and had a lot of interest in those wanting to buy the brand. It is really a matter of whether we sell the brand before some of the anticipated upcoming deals with retailers, or after we have a larger business in Balzac again. In any event, the core business of Innovation Fund requires it to go into lines that can generate at least $100 million per year and we see a properly run Balzac line as a $20 –$30 million per year business,” Spector concluded.

FOR MORE INFORMATION, PLEASE CONTACT: BARBARA CARVER AT 516 921-3100 OR VIA EMAIL AT bcarver@innfund.com

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