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LeapFrog Enterprises, Inc.

Bank of AmericaConsumer Conference

March 15, 2006

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Kathryn Olson

Chief Marketing Officer

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Certain statements in this presentation contain forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission.

Forward-Looking Statements

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Who are we?

• LeapFrog is first and foremost an educational products company

• We are driven by our passion to be the most effective brand for quality, technology-based products

• Our products solve education problems• Content of all products align with state and national

educational standards

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The LeapFrog Vision

Become the Leading Brand for Quality, Technology-Based Educational Products for

School, Work and Home Use for All Ages Around the World

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Our Business Segments - 2005

International

Revenue: $131

Education

and Training

Revenue: $40

US Consumer

Revenue: $478

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• Ranked third of all brands in the industry

• Strong portfolio of educational products

• Four large product categories– Stand-Alone– Book-based– Screen-based– FLY pentop computer

• Benefit: All products are based on real education curriculum

EducationUS Consumer

International

US Consumer Segment

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Little Touch 4%Stand-Alone 25% My First LeapPad 13%

Leapster /

LeapPad 44%

Stand-Alone 28%

Leapster / Leapster L-MAX 32%

LeapPad 13%

My First LeapPad 6%Little Touch7%

Other 6%

2003 2005

FLY 11%

Other 2%

Total LeapPad Family 61% Total LeapPad Family 27%

Our Product Portfolio is Broader(US Consumer Segment Only)

Leapster L-MAX 7%

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2005 Infant, Baby, and Toddler

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2005 LeapPad Family

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Little Touch TV Commercial

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2005 Leapster and Leapster L-MAX

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Leapster TV Commercial

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2005 FLY Pentop ComputerBig winner at this year’s 2005 Toy Fair

•Most Innovative Toy of the Year

•Best 2005 Educational Toy

•Overall best Toy of the Year

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FLYTV Commercial

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• Includes sales in 6 languages in more than 25 countries

• Leapster L-MAX named Toy of the Year by the Canadian Toy Testing Council in 2005

• Growing France, Spain and Mexico businesses

Education

US Consumer

International

International Segment

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International TV Commercial

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FLY™ Pentop Computer, Oppenheim Toy Portfolio, Platinum AwardLeapster™ Learning Game System, Dr. Toy, Best Smart Play/Smart Toy Product 2005Leapster L-MAX™ Learning Game System, Oppenheim Toy Portfolio, Platinum AwardLeapster L-MAX™ Learning Game System, The National Parenting Center Seal of ApprovalLearn-Around™ Playground, Oppenheim Toy Portfolio, Platinum AwardLearning Connections™ Train, - The National Parenting Center Seal of ApprovalLearning Connections™ Train, Parents' Choice Approved Award winnerLearning Connections™ Train, Oppenheim Toy Portfolio, Gold AwardMy First LeapPad® learning system, Oppenheim Toy Portfolio, Gold AwardMy First LeapPad® learning system, The National Parenting Center Seal of ApprovalTalking Words Factory™ 2: Code Word Caper, Parents’ Choice Silver Award

Our Products Have Received Numerous Awards in 2005:

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LeapFrog International Awards 2005

Leapster L-MAX learning game system, Canadian Toy Testing Council Energizer Battery-Operated Toy of the Year AwardLeapster L-MAX learning game system, Canadian Toy Association “2005 Hot Toy”Leapster L-MAX learning game system, Today’s Parent Top ToysLeapster L-MAX Letters on the Loose Software, Canadian Toy Testing Council three-out-of three-star ratingLearn-Around Playground, Canadian Toy Association 2005 Hot Toy - Pre-School CategoryLearning Band Walker, Canadian Toy Testing Council, three-out-of-three-star ratingLearning Connections Train, Canadian Toy Testing Council Children’s Choice AwardLearning Connections Train, Today’s Parent, Top ToysLittleTouch LeapPad Learning System, Canadian Toy Association 2005 Hot Toy - Pre-School Category – FrenchLittleTouch LeapPad Learning System, Canadian Toy Testing Council, three-out-of three-star ratingLittleTouch LeapPad Learning System, Protégez-Vous, five-out-of-six point rating

for French version

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Coverage Across Top Tier Media Has Been Extensive

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T.O.T.Y (Toy of the Year) 2006

Toy of the Year: FLY™ Pentop Computer

Educational Toy of the Year: FLY™ Pentop Computer

Most Innovative Toy of the Year : FLY™ Pentop Computer

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The 2006 HOT winners (by category) are:

Apparel & Accessories: Perfect Panty, by HanesAutomotives: Ice & Frost Shield, by PrestoneCE & Entertainment: SoundDock, by BoseHardware: ONELink, by First AlertHealth & Beauty: Venus Vibrance, by GilletteHome Goods & Housewares: Tide To Go, by Procter & GambleOffice Supplies & Stationery: Scotch brand Stretchy Tape, by 3MSporting Goods: StreetPilot, by GarminToys: FLY Pentop computer, by LeapFrog

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49Dora the Explorer50Nemo50Robot Chicken51Shrek (Movie)51Winnie the Pooh51The Easter Bunny51Cinderella52Toy Story 255Shrek (Movie Character)56Toy Story 59LeapFrog68Santa Claus

Positive Q ScoreProperty

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LeapFrog - Fortune BREAKAWAY BRAND

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• Products used in over 100,000 Classrooms– LFSH editorial staff– Educational Advisory Board– Maps to state standards

• Adjustable learning paths personalized to the child’s abilities

• Multimedia abundance, especially audio language support

• Grows with the child for added value

US Consumer

International

Education

Education and Training Segment

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• Individualized instructional “Learning Paths”• Comprehensive suite of reports• Aligned to State Standards

• Reading

• Language Arts

• Math

LeapTrack: K to 5 System for Formative Assessment and Differentiated Instruction

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Our Portfolio is Supported by Strong Licensed Products

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Bill Chiasson

Chief Financial Officer

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To Strengthen the Company We Implemented a Three Step Process

Grow the Business

Restore Profitability

Fix Business Processes

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We Did What We Said We Would Do

• Successful launch of new products • Strong and more diversified portfolio of product line• Sales improved by 11% in US Consumer segment• Gross margin improved 2.5%• Operating expenses down $14 million• Net income of $17.5 vs. loss of $6.5 in 2004

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2005 Financial Performance Summary

• Strong US Consumer business offset sales declines in our International and Education and Training segments

• Gross margins increased for all segments – Better product mix and improved processes– Lower charges for inventory reserves and sales

allowances• Operating expenses are down• Strong cash position, debt free

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2005 Full Year Results

- 2.7 ppts39.9%Operating Expense+ 5.4 ppts3.1%Income / Loss from Operations

+ $24.0$17.5Net Income / (Loss)+ $0.39$0.28Diluted EPS

+ 3.5 ppts2.5%Net Income / (Loss)

+ 2.5 ppts43.0%Gross Profit% to Net Sales

+ $34.9$21.0Income / (Loss) from Operations(5.3%)$258.7Operating Expense8.0%$279.6Gross Profit1.5%$649.8Net Sales

Vs. 20042005 Amt.($ millions, except EPS)

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Consolidated Net Sales Stable

$400

$450

$500

$550

$600

$650

2004 2005

• Sales growth in US Consumer segment

• Offset by decline in sales in International and Education and Training segment

(US$ in Millions) Up 1%

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Consolidated Gross Margin (%) Improved

40.5%

43.0%

30%

32%

34%

36%

38%

40%

42%

44%

2004 2005

• Favorable product mix– Accretive FLY pentop computer

margin• Improvements in cost of sales• Improved freight costs• Gross margin up in each

segment– US Consumer: up 3.8 ppts– International: up 2.5 ppts– Education and Training: up 1.8 ppts

Up 2.5 ppts

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Consolidated Operating Expense down $14 million

$175$185$195$205$215$225$235$245$255$265$275

2004 2005

• Consumer business cost reduction actions

• R&D expense decreased– FLY Pentop Computer – Global Leverage

• Lower displays and catalog related costs

• Some increases due to:– restructuring – process improvements

(US$ in Millions)

Down $14

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Consolidated Operating Income Improves

-$30

-$20

-$10

$0

$10

$20

$30

2004 2005

Sales Stable+

Margins up 2.5 ppts+

Expenses Down $14 Million=

Operating Income up $35 million

(US$ in Millions)

Up $35

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Kathryn Olson

Chief Marketing Officer

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Continuing the Innovation

Global launch of Little Leaps Grow-with-Me learning system

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Continuing the Innovation

Global launch of Leapster TV learning system

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Continuing the Innovation

Software for FLY Pentop Computer platform– Algebra, Creative writing, In-classroom testing

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Continuing the Innovation in the ClassroomThe Literacy Center

Now with alignment to DIBELS

Leapster Portable Technology Center

FLY Pentop Computer

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Long-Term Goals

• Continue to build global consumer educational brand

• Become leading provider of PreK-12 supplemental curriculum

• Create strategic advantage in the “extended learning” market

• Achieve superior levels of profitability and shareholder value

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Why We Will Succeed

• Original vision correct• Company strengths:

– Brand strength– Product innovation– Diversified portfolio– Education foundation

• Operational metrics are improving• Liquidity strong