- The number of LEGO employees reaches 9,500, its peak.
- The first LEGO computer game, LEGO Island, is released on October 2nd.
- The first fiber-optic elements are introduced.
- A container ship with 4,756,940 LEGO pieces were hit by a huge wave west of England, dumping the pieces into the sea.
Themes introduced or discontinued
- Fright Knights, a sub-theme of Castle, is introduced.
- UFO, a sub-theme of Space, is introduced.
- Divers, a sub-theme of Town is introduced, then discontinued.
- Outback, a sub-theme of Town is introduced, then discontinued.
- Roboforce, a sub-theme of Space, is introduced, then discontinued.
- Aquaraiders, a sub-theme of Aquazone, is introduced, then discontinued.
- Wild West is discontinued.
- Exploriens is discontinued.
- Paradisa is discontinued.
- Pirates is paused until 2009
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