<PAGE>   1
                                                                      EXHIBIT 99

The following factors, among others, could cause results to differ materially
from those contained in forward-looking statements made in this Report, or in
other SEC filing, Annual Report to Stockholders, press releases, and oral
statements, among others, made by the Company from time to time.

New Product Introductions

The growth of the Company has been, and will continue to be, dependent upon its
ability to continue to introduce new products. There can be no assurance that
the Company will continue to maintain its present rate of growth, that it will
continue to generate new product ideas, or that new products will be
successfully introduced.

Reliance on Licensed Products

A substantial factor contributing to the growth in the Company's net sales in
1995 and in the first nine months of 1996 has been its licensing agreements with
The Walt Disney Companies to feature Winnie the Pooh characters an a variety of
its products in various countries. In addition, in October of 1996, the Company
entered into an agreement with the Children's Television Workshop ("CTW"), to
produce a line of juvenile accessories using CTW's Sesame Street characters.
The agreements expire at different intervals and there can be no assurance
that they will be renewed or that, if renewed, they will result in sales
increases in future periods.

Demand for the Company's Products

The continued success of the Company's business also depends in part on the
continued consumer demand for its juvenile products. Changes in consumer demand
due to general economic decline or to less favorable demographic trends related
to childbirth, among other factors, could have a material adverse effect an the
Company's business.

Dependence upon Major Customers

The two largest customers of the Company, Wal*Mart and Toys "R" Us, accounted
for approximately 28% and 21%, respectively, of net sales during 1995. A
significant reduction of purchases by these customers could have a material
adverse effect on the Company's business.

Competition

The juvenile products industry is highly competitive and includes numerous
domestic and foreign competitors, some of which are substantially larger and
have greater financial and other resources than the Company. There can be no
assurance that the Company will be able to continue to compete effectively in
the Juvenile products market.
<PAGE>   2
Reliance on Foreign Manufacturers

The Company does not own or operate its own manufacturing facilities. in 1995,
the Company derived approximately 46% of its net sales from products
manufactured by others in the Far East, mainly in the Peoples' Republic of China
("China"). The Company has no long-term contracts with these manufacturing
sources. Foreign manufacturing is subject to a number of risks including
transportation delays and interruptions, quotas, and other import or export
controls, the imposition of tariffs, currency fluctuations, misappropriation of
intellectual property, political and economic disruptions, and changes in
governmental policies.

From time to time, the United States has attempted to impose additional
restrictions on trade with China. Enactment of legislation or the imposition of
restrictive regulations conditioning or revoking China's "most favored nation"
("MFN") trading status could have a material adverse effect upon the Company's
business because products originating from China could be subjected to
substantially higher rates of duty. President Clinton has extended China's MFN
trading status until July 3, 1997. The European Union (the "EU") has enacted a
quota and tariff system with respect to the importation into the EU of certain
products originating in China. Although the Company continues to evaluate
alternative sources of supply outside of China, there can be no assurance that
the Company will be able to develop alternative sources of supply in a timely
and cost-effective manner. Also, the Company, because of its substantial
reliance on suppliers in foreign countries, is required to order products
further in advance of customer orders than would generally be the case if such
products were produced in the United States. The risk of ordering products in
this manner is greater during the initial introduction of new products since it
is difficult to determine the demand for such products.

Cost and Availability of Certain Materials

Plastic and paperboard are significant cost components of the Company's products
and packaging. Because the primary resource used in manufacturing plastic is
petroleum, the cost and availability of plastic for use in the Company's
products varies to a great extent with the price of petroleum. The inability of
the Company's suppliers to acquire sufficient plastic or paperboard at
reasonable prices would adversely affect the Company's ability to maintain its
profit margins in the short term.

Product Liability Risks

The company's juvenile products are used for and by small children and infants.
The Company carries product liability insurance in amounts which management
deems adequate to cover risks associated with such use; however, there can be no
assurance that existing or future insurance coverage will be sufficient to cover
all product liability risks.
<PAGE>   3
Government Regulations

The Company's products are subject to the provisions of the Federal Consumer
Safety Act, the Federal Hazardous Substances Act, the Federal Flammable Fabrics
Act, and the Child Safety Protection Act (the "Acts") and the regulations
promulgated thereunder. The Acts authorize the Consumer Product Safety
Commission (the "CPSC") to protect the public from products which present a
substantial risk of injury. The CPSC can require the repurchase or recall by the
manufacturer of articles which are found to be defective and impose fines or
penalties on the manufacturer. Similar laws exist in some states and cities and
in other countries in which the Company markets its products. Any recall of its
products could have a material adverse effect on the Company, depending on the
particular product.