Racing Champions Ertl to Market Tomy's 'Tomica Town' in the United States

    GLEN ELLYN, Ill., Feb. 11 -- Under terms of an
agreement announced today by Racing Champions Ertl , the Company
has entered into an agreement with Tomy, a leading Japanese toy maker, to
market that company's Tomica Town in the United States. Product releases are
expected to begin in August 2003.
    Described as "a totally integrated play environment" that children can
create for themselves, Tomica Town is a miniature world, complete with
replicas of familiar icons, including buildings such as McDonalds and Shell,
and die-cast replicas of Toyota, Honda, Nissan, and Mitsubishi automobiles.
The die-cast vehicles and accessories, produced in 1:64-scale, can be combined
in extensive imaginative play patterns by children in the 3-12 age range, and
are also expected to be popular with adult collectors.  Although Tomica Town
products are category leaders in Japan, they have not been available in recent
years in the United States.
    "This new license marks the beginning of an important strategic
relationship between Racing Champions Ertl and Tomy," said Peter Henseler,
President of Racing Champions Ertl.  "Tomy's excellent reputation for creating
high-quality die-cast vehicles and play sets is a significant complement to
our own 55-plus years of leadership in the die-cast vehicle field.  Tomica
Town products are well known and have a strong following overseas.  By
launching these products in the U.S. market, we will expand both the breadth
and depth of our product offerings."

    About Racing Champions Ertl
    Racing Champions Ertl ( http://www.rcertl.com ) is a leading producer and
marketer of innovative collectibles and toys targeted at males of all ages.
The Company's diverse product offerings include scaled die-cast replicas of
John Deere agricultural equipment and NASCAR stock cars, other licensed
vehicle replicas, pre-teen toys, sports trading cards, racing apparel and
souvenirs, and collectible figures.  These products are sold under the
Company's market-focused brand names, including Racing Champions(R), Ertl(R),
Ertl Collectibles(R), American Muscle(TM), AMT(R), W. Britain(R), Press
Pass(R), and JoyRide Studios(TM).  The Company reinforces its brands and
enhances the authenticity of its products by linking them with highly
recognized licensed properties including NASCAR, NHRA, John Deere, Harley-
Davidson, Case, Polaris, Honda, Caterpillar, Ford, GM, Chrysler, Texaco,
Universal Studios, Warner Brothers, Hit Entertainment, Nintendo, Sega, and
Electronic Arts. The Company's products are marketed through multiple channels
of distribution, including mass retailers and specialty and hobby wholesalers
and retailers, OEM dealers, and to corporate accounts for promotional
purposes. The Company sells through more than 20,000 retail outlets located in
North America, Europe, and Asia Pacific.
    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.  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's actual results and future developments
could differ materially from the results or developments expressed in, or
implied by, these forward-looking statements.  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.

    CONTACT:  Curt Stoelting, CEO, +1-630-790-3507, ext. 133, or Jody Taylor,
CFO, +1-630-790-3507, ext. 158, both of Racing Champions Ertl