Racing Champions Announces New Products At the 2001 New York Toy Fair

    GLEN ELLYN, Ill.--Feb. 8, 2001--Racing Champions today announced a number of new innovative collectible and toy products at the New York Toy Fair. With one of the most extensive product lines in the industry, Racing Champions continues to provide its broad customer base with new and exciting products. Marketed under the Racing Champions(R), Ertl(R) and Ertl Collectibles(R) brands, new introductions include:

-	Outdoor Sportsman(TM) -- an exclusive line of licensed authentic collectible figures, die-cast recreational vehicles and related equipment targeted for the over 77 million Americans who actively enjoy the great outdoors. Showcasing all aspects of outdoor sports including hunting, fishing and RV's of all types including ATV's, snowmobiles, watercraft, motorcycles and 4x4 trucks, the Outdoor Sportsman line features exclusive licenses with high-profile TV personalities such as Jimmy Houston, Bill Jordan, Hank Parker, Orlando Wilson, Babe Winkelman as well as Pro Bass Tournament fishermen Kevin Van Dam, Clark Wendlandt and Jay Yelas. The Outdoor Sportsman product line-up includes licenses with over 30 of the top brands associated with outdoor sports and adventure. According to Pete Henseler, president of Racing Champions, "Outdoor Sportsman is the most ambitious and exciting product line of licensed outdoor sporting collectible products ever brought to market."
-	Little Muscle(TM) -- a line of collectible die-cast and plastic push and roll cars and trucks with sound targeted for the pre-school set, all of which are officially licensed by GM, Ford and Chrysler. These vehicles are based on a kid-friendly design and are highly stylized, with eyes and mouths that actually move on the plastic versions, and a name and personality of their own. Each car comes complete with a sticker and collector card featuring a photo of the vehicle and its character's bio.
-	Ford Precision 100(TM) second issue -- the 1913 Ford Model T Speedster 1:18 scale highly detailed die-cast replica will be available at participating Ford Motor Company dealers, select hobby stores and specialty retailers nationwide beginning this spring. This classic follows the highly acclaimed, award winning '64 1/2 Ford Mustang Convertible replica which was launched in 2000. Future releases of the Ford Precision 100 collection will include the '57 Thunderbird and the '37 Lincoln Zephyr V-12. This exclusive collection commemorates the upcoming centennial of Ford Motor Company.
-	American Muscle(TM) -- a line of collectible die-cast vehicle replicas which won five awards from collectors' magazines in 2000 including best 1:18 scale manufacturer. American Muscle is celebrating its 10th Anniversary by introducing 18 new models in 2001. Additional American Muscle releases include - the Body Shop die-cast activity kit line which targets enthusiasts who are looking for high quality die-cast model kits. This line includes construction, military, muscle cars, aircraft, trucks, motorcycles and TV/movie licensed automobile kits including Dukes of Hazzard.
-	Chase the Race(TM) -- an innovative and exciting new racing die-cast series featuring NASCAR and NHRA race car drivers. This series allows collectors to enjoy the thrill of the chase by collecting the die-cast cars packaged with memorabilia like race-used tires, fire suits, sheet metal and driver autographs. In 2001, Racing Champions is featuring the new NASCAR Dodge Intrepid R/T stock car and all new tooling for the 1:64th and 1:24th scale NHRA top fuel dragsters, funny cars and pro stocks.
-	Ertl's John Deere product line is expanding with over 75 new items in collectible agricultural and construction replicas. Building on the success of its John Deere Kids line the new product releases will include MY FIRST JOHN DEERE COLLECTIBLE, the first ever John Deere Kids collectible die-cast series and four new wheeled toys including a plastic pedal tractor, tuff trike, steel wagons and ride-on Gator.

    Founded in 1989, Racing Champions (www.rcertl.com) is a leading producer and marketer of innovative collectibles and toys sold in multiple channels of distribution and available at more than 20,000 retail outlets. The Company sells American Muscle(TM) collectible die-cast vehicle replicas, NASCAR and NHRA die-cast racing replicas, officially licensed die-cast and preschool products of automobiles, trucks, agricultural, heavy equipment and powered-recreational and sport vehicles, AMT(TM) model kits, Press Pass(TM) trading cards and NASCAR souvenirs and apparel. High-profile licensing partners include NASCAR, NHRA, John Deere, Case, Polaris, Honda, Caterpillar, Ford, GM, Chrysler, Texaco, and Warner Brothers.

    Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will" and "would." Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. The Company's actual results and future developments could differ materially from the results or developments expressed in, or implied by, these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the following; the Company may not be able to manufacture, source and ship new and continuing products on a timely basis and customers and consumers may not accept those products at prices sufficient for the Company to profitably recover development, manufacturing, marketing, royalty and other costs; the inventory policies of retailers, together with increased reliance by retailers on quick response inventory management techniques, may increase the risk of underproduction of popular items, overproduction of less popular items and failure to achieve tight shipping schedules; competition in the markets for the Company's products may increase significantly; the Company is dependent upon continuing licensing arrangements with vehicle manufacturers, agricultural equipment manufacturers, major race sanctioning bodies, race team owners, drivers, sponsors, agents and other licensors; the Company may experience unanticipated negative results of litigation; the Company relies upon a limited number of independently owned factories located in China to manufacture a significant portion of its vehicle replicas and certain other products; the Company is dependent upon the continuing willingness of leading retailers to purchase and provide shelf space for the Company's products; and general economic conditions in the Company's markets. Such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.