LITTLE ROCK, Ark. - The discovery of lead in the fabric of a brand of baby bibs sold at Wal-Mart Stores has resulted in a recall of the items, the company said.

The bibs, sold under the Baby Connection brand name, came in packs of two to seven bibs, with embroidered prints or images of Sesame Street characters. Some were sold as long ago as 2004. The bibs were made by Hamco Inc. exclusively for the Bentonville-based retailer.

Mia Masten, a Chicago-based spokeswoman for Wal-Mart, said the vinyl portion of the bibs exceeded the lead levels set by Illinois for children's products. She said the company had worked with the Illinois attorney general's office to pull the items and later decided to expand the recall nationwide.

Masten said about 60,000 of the bib bundles were sold in Illinois without any reported injuries.

Masten said officials with the world's largest retailer have been in contact with Hamco, but referred all questions about the products' manufacturing to Hamco.

Officials at Hamco, a subsidiary of Crown Crafts Inc. of Gonzales, La., said the company has no comment and referred questions to Wal-Mart.

The Illinois attorney general's office identified the bibs as being sold between June 2004 and the end of March of this year in Wal-Mart stores throughout the state. Tests on three styles of the bibs tested positive for lead more than 600 parts per million, Illinois' standard for lead in children's products, said Robyn Ziegler, a spokeswoman with the attorney general's office.

While Wal-Mart pulled the product from its shelves nationwide, Masten said only customers in Illinois would be eligible to receive refunds or replacements. It wasn't immediately clear why the refunds only covered Illinois.

Initially, Masten said the recall only pertained to Illinois. Later Wednesday, she said it was nationwide.

Wal-Mart's recall comes after a lawsuit over the bibs by the Center for Environmental Health, based in Oakland, Calif. Alexa Engelman, a researcher there, said the center became aware of the bibs in September. Engelman said a report by an independent laboratory test contracted by the center showed the bibs contained 16 times the amount of lead allowed in paint.

Lead, used as a stabilizer in vinyl plastic, can be ''easily substituted'' for other products, Engelman said.

Public health experts consider elevated levels of lead in blood a significant health hazard for children. Studies have repeatedly shown that childhood exposure to lead can lead to learning problems, reduced intelligence, hyperactivity and attention deficit disorder. There is no lead level that is considered safe in blood, and recent studies have shown adverse health effects even at very low levels.

The U.S. Consumer Product Safety Commission issued a statement Wednesday saying that the bibs were safe if in good condition. However, if a bib ''deteriorates to the point that a baby could pull or bite off and swallow a piece of vinyl containing the lead, then the amounts of lead consumed could approach levels of concern,'' the agency said.

Those who purchased the bibs in Illinois can return them at their local Wal-Mart for a full refund or can receive a free replacement by calling (877) 373-3812.