WATERLOO -- You might say they're Beanie Babies with byte. Or you could say they're the Tamagotchis of the new millennium. Here in the Cedar Valley, though, kids have one word to describe the Ganz line of Webkinz pets -- fun!

The cuddly creatures have become the must-have toy of the summer, and retailers are trying to keep pace with demand.

"When I get a shipment in, let me tell you they are gone," says Penny Franke, owner of Bead Happy in Waterloo. "It's just nuts. A little girl came in and when she saw we were sold out of the black lab, her eyes welled up with tears."

Webkinz typically retail for about $13 and come in a variety of plush animals, ranging from the hard-to-find pink pony to panda bears and pigs. The toys also come in a miniature version, Lil'Kinz, which go for about $10.

While kids have always gone for the cuddle factor of a stuffed animal, it's the Webkinz' cyber gadget factor that has them going gaga.

Webkinz pets come with a unique code that gains their owners access to the online Webkinz World. After an adoption process where kids name their digital creatures, they begin to care for a simulated version of their stuffed animal. In a mix between digital pets like Tamagotchis and computer games like "The Sims," kids monitor their animal's happiness, health and hunger and furnish their digital houses.

Children can win Kinzcash from reading and math games to put towards buying their pets extravagant digital toys, like plasma TVs, at the Curio Shop.

Webkinz aficionados range in gender and age, but the web site is geared toward users age 6 and older. Franke's children, Ben, 9, and Hailey, 12, are self-proclaimed Webkinz addicts.

"The kids have too many but can never have enough. Hailey asks me everyday if we've got new shipments in and it drives me crazy," Franke says. "If I let him, Ben would go on Webkinz all day everyday. He likes playing on Webkinz as much as the PlayStation because it's ever-changing."

Ben says he finds it difficult to pick a favorite Webkinz. "It's kind of hard to like one more than the other. Both of them are boy animals, the cheeky monkey and the bullfrog," Ben says. He affectionately refers to his bullfrog as "William Ribbetspeare."

Hailey says she's learning how to be responsible by managing the Kinzcash she earns from the trivia and arcade games. "I have $9,000 because I started saving my money," she says.

Hailey's friend Noelle Larson, 11, is hooked on the trendy toys too. The girls enjoy competing against each other in online Webkinz games.

"We'll be on the phone and be like, 'Let's get on Webkinz,'" Noelle says. "I try to go on everyday. Sometimes I have to eat but then I hurry back to the computer."

Children communicate with friends and other Webkinz fans in the KinzChat, where users select phrases and sentences from a predetermined menu, preventing explicit language or the exchange of personal information.

Webkinz started taking off this spring in the Cedar Valley, and Ganz regional representative Kris Trotter says the pets are "only going to get bigger."

Trading cards, charms, clothing and accessories add to the Webkinz experience, and new creatures are released every month. Local businesses say that with Webkinz in such high demand, they may become the Tickle Me Elmo of the 2007 holiday season.

"You go to the store, buy a stuffed animal, get the code, go on the computer, design a room and have fun," says 11-year-old Noelle. "It's awesome."

"Retired" Webkinz sell eBay for more than $500 and Franke has gotten callers from as far as California offering to buy entire shipments.

Chantel Boeschen, manager of Coach House Gifts in Waterloo, likens Webkinz to the Ty Beanie Babies phenomenon of the '90s.

"The only thing that's different between the two is that these are kid-friendly and kid-oriented," Boeschen says. "It's Beanie Babies meets a computer learning game. It's so neat and creative."

Contact Kayla Porter at (319) 291-1482 or kayla.porter@wcfcourier.com.

Join the Webkinz World

Webkinz are sold at the following area stores:

Waterloo:

Bead Happy

209 W. Fifth St.

(319) 232-1838

Ben Franklin

2206 Kimball Ave.

(319) 233-2716

Coach House Gifts

2060 Crossroads Blvd.

(319) 233-1572

Cedar Falls:

Cathy's Hallmark

315 Main St.

(319) 266-8171

Coach House Gifts/ Hallmark Gold Crown

1400 College Square Mall

(319) 277-2061

Flowerama

320 W. First St.

(319) 291-6004