Exhibit 1 MMDCNew Heritage Doll Company: Capital BudgetingExhibit 1Selected Operating Projections for Match My Doll Clothing Line Expansion20102011201220132014201520162017201820192020Revenue4,5006,8608,4099,0829,80810,59311,44012,35513,34414,411Revenue Growth52.4%22.6%8.0%8.0%8.0%8.0%8.0%8.0%8.0%Production CostsFixed Production Expense (excl depreciation)575575587598610622635648660674Variable Production Costs2,0353,4044,2914,6695,0785,5216,0006,5197,0797,685Depreciation152152152152164178192207224242Total Production Costs02,7624,1315,0295,4195,8536,3216,8277,3737,9638,600Selling, General & Administrative1,2501,1551,7352,1022,2702,4522,6482,8603,0893,3363,603Total Operating Expenses1,2503,9175,8667,1327,6908,3058,9699,68710,46211,29912,203

Operating Profit(1,250)5839941,2771,3921,5031,6231,7531,8932,0452,209Operating Profit/SalesERROR:#DIV/0!13%14%15%15%15%15%15%15%15%15%Selling, General & Administrative/SalesERROR:#DIV/0!26%25%25%25%25%25%25%25%25%25%

Working Capital Assumptions:Minimum Cash Balance as % of Sales3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%Days Sales Outstanding59.2x59.2x59.2x59.2x59.2x59.2x59.2x59.2x59.2x59.2xInventory Turnover (prod. cost/ending inv.)7.7x8.3x12.7x12.7x12.7x12.7x12.7x12.7x12.7x12.7xDays Payable Outstanding (based on tot. op. exp.)30.8x30.9x31.0x31.0x31.0x31.0x31.0x31.0x31.0x31.0x

Capital Expenditures1,470952152152334361389421454491530

Cash0.0x135.0x205.8x252.3x272.4x294.2x317.8x343.2x370.7x400.3x432.3xAccounts Receivable0.0x729.5x1,112.1x1,363.1x1,472.2x1,590.0x1,717.2x1,854.5x2,002.9x2,163.1x2,336.2xInventoryERROR:#DIV/0!360500396427461498538581627677Accounts Payable03304976066537067628238899601,037Working Capital0894.041,321.391,405.531,518.061,639.491,770.661,912.312,065.282,230.522,408.96DNWC800800.00894.041,321.391,405.531,518.061,639.491,770.661,912.312,065.282,230.5294.04427.3684.14112.52121.43131.17141.65152.97165.24178.44NPV AnalysisEBIT(1-t)-750349.68596.4766.38835.08901.86974.0761051.9621135.9812271325.1Depreciation Add Back1,470952152152334361389421454491530NWC-94.0366035388-427.355146768-84.1428113802-112.524595707-121.4347568979-131.1686518693-141.6479748981-152.9693496753-165.2397886744-178.439491317CAPEX: Less-1470-952.2-152.2-152.2-333.8-360.5-389.3-420.5-454.1-490.5-529.7Free Cash Flow-750255.6433964612169.044853232682.2371886198722.555404293780.4252431021842.9073481307910.3140251019983.01065032471061.76021132561146.660508683Terminal Value3%

Discount factor7.70%10.92850510680.86212173330.8004844320.74325388310.6901150260.64077532590.59496316240.55242633470.51293067290.4762587492-750237.3661991283145.737241876546.1202484527537.0421099599538.5831869697540.1142307417541.6033111875543.0409705002544.6093796108546.1070995917NPV$3,686.47

Exhibit 2 DYODNew Heritage Doll Company: Capital BudgetingExhibit 2Selected Operating Projections for Design Your Own Doll20102011201220132014201520162017201820192020Revenue06,00014,36020,22221,43522,72124,08425,52927,06128,685Revenue Growth139.3%40.8%6.0%6.0%6.0%6.0%6.0%6.0%Production CostsFixed Production Expense (excl depreciation)01,6501,6831,7171,7511,7861,8221,8581,8951,933personnel development cost435Variable Production Costs02,2507,65111,42712,18212,98313,83314,73615,69416,712Depreciation0310310310436462490520551584Total Production Costs04354,2109,64413,45414,36915,23116,14517,11318,14019,229Selling, General & Administrative1,20101,2402,9224,0444,2874,5444,8175,1065,4125,737Total Operating Expenses1,2014355,45012,56617,49818,65619,77520,96222,21923,55324,966

Operating Profit(1,201)(435)5501,7942,7242,7792,9463,1233,3103,5093,719operating profit/salesERROR:#DIV/0!ERROR:#DIV/0!9%12%13%13%13%13%13%13%13%Selling, General & Administrative/salesERROR:#DIV/0!ERROR:#DIV/0!21%20%20%20%20%20%20%20%20%

Working Capital Assumptions:Minimum Cash Balance as % of Sales3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0%Days Sales Outstanding59.2x59.2x59.2x59.2x59.2x59.2x59.2x59.2x59.2xInventory Turnover (prod. cost/ending inv.)12.2x12.3x12.6x12.7x12.7x12.7x12.7x12.7x12.7x345.6239737274Days Payable Outstanding (based on tot. op. exp.)33.7x33.8x33.9x33.9x33.9x33.9x33.9x33.9x33.9x

Capital Expenditures4,61003103102,1928268759289831,0431,105

cash00180430.8606.648643.044681.627722.526765.879811.8318860.541accounts receivable00972.65753424662327.89369863013278.11526575343474.78661917813683.27576164383904.27976438364138.54433150684386.85731561644650.0649287671inventory ERROR:#DIV/0!ERROR:#DIV/0!345.6239737274785.95762021191065.20981789391129.61477987421197.40566037741269.24528301891345.3930817611426.12421383651511.6981132076accounts payable004741,1351,5981,6941,7961,9042,0182,1392,267working capitalERROR:#DIV/0!10001024.2815079742409.6513188423351.97308364733553.44539905233766.30842202123992.05104740244231.81641326794485.81332945294755.3040419747DNWC100010001024.2815079742409.6513188423351.97308364733553.44539905233766.30842202123992.05104740244231.81641326794485.8133294529100024.2815079741385.369810868942.3217648053201.472315405212.8630229689225.7426253812239.7653658654253.9969161851269.4907125218NPV ANALYSISEBIT(1-t)(721)(261)3301,0771,6341,6681,7671,8741,9862,1052,231depreciation add back00310310310436462490520551584NWC-1000-24.281507974-1385.369810868-942.3217648053-201.472315405-212.8630229689-225.7426253812-239.7653658654-253.9969161851-269.4907125218capex: less(4,610)0(310)(310)(2,192)(826)(875)(928)(983)(1,043)(1,105)free cash flow(5,331)(1,261)306(309)(1,190)1,0771,1421,2101,2821,3591,441terminal value3%discount factor9%10.91743119270.84167999330.77218348010.70842521110.64993138630.59626732690.54703424480.50186627970.46042777950.4224108069-5330.6-1156.880733945257.4686407087-238.4423907635-842.956408879699.6821290651680.768529947661.9756441964643.5906241054625.8774759706608.5711726258npv($3,390.95)npv no term. Value($3,110.96)NPV ANALYSISEBIT(1-t)-720.6-261330.181076.581634.221667.521767.481873.561986.062105.1362231.4depreciation add back00309.7309.7309.7436.2462.4490.1519.5550.7583.8NWC-1000-24.281507974-1385.369810868-942.3217648053-201.472315405-212.8630229689-225.7426253812-239.7653658654-253.9969161851-269.4907125218capex: less-46100-309.7-309.7-2191.5-825.7-875.3-927.8-983.4-1042.5-1105free cash flow-5330.6-1261305.898492026-308.789810868-1189.90176480531076.5476845951141.71697703111210.11737461881282.39463413461359.33908381491440.7092874782terminal value0.03discount factor7.700%10.92850510680.86212173330.8004844320.74325388310.6901150260.64077532590.59496316240.55242633470.51293067290.0002859385-5330.6-1170.8449396472263.7217381633-247.1814363741-884.3991071403742.9417333931731.5840680965719.975260126708.4285673352697.24671090550.4119542551npv($3,768.72)npv no term. Value($2,862.56)NPV ANALYSISEBIT(1-t)-720.6-261330.181076.581634.221667.521767.481873.561986.062105.1362231.4depreciation add back00309.7309.7309.7436.2462.4490.1519.5550.7583.8NWC-1000-24.281507974-1385.369810868-942.3217648053-201.472315405-212.8630229689-225.7426253812-239.7653658654-253.9969161851-269.4907125218capex: less-46100-309.7-309.7-2191.5-825.7-875.3-927.8-983.4-1042.5-1105free cash flow-5330.6-1261305.898492026-308.789810868-1189.90176480531076.5476845951141.71697703111210.11737461881282.39463413461359.33908381491440.7092874782terminal value0.03discount factor8.400%10.92850510680.86212173330.8004844320.74325388310.6901150260.64077532590.59496316240.55242633470.51293067290.0002859385-5330.6-1170.8449396472263.7217381633-247.1814363741-884.3991071403742.9417333931731.5840680965719.975260126708.4285673352697.24671090550.4119542551npv($3,768.72)npv no term. Value($3,001.14)