• 3-year commercial agreement with Directed Electronics Australia
• Co-development of products, packaging and marketing services
• Accelerates strategic roadmap, including private label expansion

Toys'R'US ANZ Limited (ASX:TOY) has announced a strategic commercial agreement with Directed Electronics Australia Pty Ltd, a leader in consumer electronics and innovation. The agreement has an initial term of 3 years with the option to extend for two additional 12-month periods. The partnership will enable the co-development of products, packaging and marketing services for TOY and its retail brands. This represents a significant milestone in accelerating TOY's strategic roadmap, particularly in the development of private label products and the expansion of the company's product portfolio. TOY will own all rights to materials developed under this agreement. Directed will provide comprehensive support including market analysis, product development, sourcing and manufacturing assistance, quality control, packaging design, marketing, and supply of goods. The financial terms include an annual fee of $1.2 million to be paid through the issuance of options convertible to ordinary shares, and the supply of goods to TOY with an aggregate value of $400,000 per annum. This partnership is expected to have a transformative impact on TOY's business operations and market position, allowing the company to accelerate product development and deliver on its initiatives faster than anticipated.

The agreement is expected to enable the supply of goods to TOY with an aggregate value of $400,000 per annum during the 3-year agreement term.

The partnership with Directed is expected to have a transformative impact on TOY's business operations and market position, accelerating product development and delivering on the company's strategic initiatives.