MONTREAL - Canadian toymaker Mega Brands Inc. has been ordered by the U.S. Consumer Product Safety Commission to recall an additional four million Magnetix magnetic building sets.

In March 2006, Mega Brands recalled 3.8 million sets when one child died and four others were seriously injured after they swallowed the tiny magnets.

The U.S. consumer agency said Thursday additional serious incidents have brought to 27 the total number of cases where children swallowed loose magnets and required emergency surgery.

"Some of those cases happened before the first recall but were reported to us after,'' commission spokeswoman Julie Vallese said from Bethesda, Md., a suburban community just north of Washington, D.C.

She added that when the first recall was announced, the agency had indicated it was leaving the investigation open.

Vallese said there appeared to be questions about improved quality control enhancements made by Mega Brands.

"The agency felt that because of additional complaints -- 1,500 complaints in total -- of magnets falling out, the agency wanted to have these products recalled and Mega Brands has voluntarily agreed to do so,'' she said.

"This recall includes all (Magnetix) products except for those that contain the 6+ and the magnet warning label that comes on the box.''

Vallese said 7.8 million units are now being recalled because they do not contain the warning.

But Mega Brands spokesman Alex Radmanovich insisted the recall now affects four million units in total, instead of the original 3.8 million.

"We know the numbers better than they do...I think it's a misunderstanding,'' he added.

But Radmanovich said it doesn't make a difference to the consumer and that Mega Brands will exchange the recalled products with "no questions asked.''

"If you're concerned in any way, call us and we'll do the right thing,'' he added.

If more than one magnet is swallowed, they can attach to each other and cause intestinal perforation, infection or blockage, which can be fatal.

While the hazard was thought to be a problem for children younger than six, at least 10 injuries involved children between the ages of 6 and 11.

The Magnetix building sets are sold in toy and arts and crafts stores.

Consumers should contact Mega Brands for a replacement toy. For more information, call Mega Brands at 800-779-7122.

In late 2006, Mega Brands reached a US$13.5-million settlement of a lawsuit arising from the toddler's death and injuries to other children. The company said product replacement expenses totalled US$16 million for the year, including $13.8 million in the fourth quarter.

Including product liability settlement expenses, integration costs and legal fees, there were full-year costs of $44.6 million related to Magnetix, of which $27 million was listed for the fourth quarter. Including one-time costs, net earnings for 2006 declined to $25.3 million or 74 cents per share from $39.6 million or $1.26 per share in 2005.

In trading Thursday on the Toronto Stock Exchange, Mega shares fell 36 cents to $22.77, a drop of nearly 1.6 per cent, on a volume of 145,000 shares.