RC2 Extends Long-Standing License with Deere & Company

OAK BROOK, Ill., May 12, 2005 -- RC2 Corporation , today announced that it has completed a multi-year extension to its long-standing licensing agreement with Deere & Company, the world's leading producer of agricultural and forestry equipment, and a leading supplier of other work equipment. The agreement gives RC2 rights to produce and sell under its Ertl(R), Learning Curve(R) and The First Years(R) brands a wide range of infant, toddler, toy and collectible products associated with John Deere. The agreement allows RC2 to distribute worldwide through John Deere dealer networks, as well as through specialty and chain retailers.

"Deere & Company has been one of our most important licensing partners for years," said Curt Stoelting, RC2's CEO. "Working together we have increased sales and distribution of John Deere licensed products in each of the last five years. We're excited to be continuing our long-term association with Deere, a market leader known for quality and integrity. Given Deere's global expansion and increasing brand recognition, we will continue to pursue future growth opportunities for John Deere across all three of our current product categories."

"We're very pleased to have extended our association with RC2 Corporation and look forward to continued growth and success with this licensing agreement," added Jeff Gredvig, Director of Licensed Merchandise for John Deere.

RC2 Corporation ( http://www.rc2corp.com/ ) is a leading designer, producer and marketer of innovative, high-quality toys, collectibles, hobby and infant care products that are targeted to consumers of all ages. RC2's infant and preschool products are marketed under its Learning Curve(R) family of brands which includes The First Years(R), Eden(R) and Lamaze brands as well as popular and classic licensed properties such as Thomas and Friends, Bob the Builder, Winnie the Pooh, John Deere and Sesame Street. RC2 markets its collectible and hobby products under a portfolio of brands including Racing Champions(R), Ertl(R), Ertl Collectibles(R), American Muscle(TM), Johnny Lightning(R), AMT(R), Polar Lights(R), Press Pass(R), JoyRide(R), JoyRide Studios(R), Memory Lane(TM), and W. Britain(R). RC2 reaches its target consumers through multiple channels of distribution supporting more than 25,000 retail outlets throughout North America, Europe, Australia, 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.