Acquisition

Hornby PLC
01 May 2008


                                        
        HORNBY STRENGTHENS PRODUCT RANGE WITH £7.5M ACQUISITION OF CORGI

Hornby Plc ('Hornby'), the international models and collectibles group, has
today announced that it has acquired the famous die-cast model business Corgi
Classics ('Corgi'). Hornby has agreed to buy the brand, tooling, and
intellectual property rights from NASDAQ quoted Corgi International Limited, for
cash consideration of £7.5 million. Fixed assets at completion had a book value
of c.£1.4 million. The balance of the consideration relates to Goodwill,
Trademarks and Intellectual Property. In addition, existing inventory will be
acquired for a consideration of c.£0.8 million, subject to a post-closing
valuation. The cash consideration will be funded from Hornby's banking
facilities.

Corgi is one of the oldest manufacturers of collectible die-cast models of
trucks, buses, cars and aeroplanes in the world. Corgi's famous model vehicles
captured the imagination of millions of baby boomers and are now highly
sought-after in the expanding collectibles market. Currently, its principal
markets are the United Kingdom, the United States and Northern Europe.

Corgi was established by the Mettoy Company in Northampton, which first started
to produce pressed metal toys in the 1930s. The Corgi brand for die-cast models
was born in 1956 and at its height, was selling millions of toys a year,
including the Batmobile, the Lotus John Player Special Formula 1 car and James
Bond's iconic Aston Martin DB5. More recently, production has been moved to
lower cost plants in the Far East. Corgi enjoys an excellent reputation
worldwide. Corgi sells a range of products based on aviation, commercial road
transport and other vehicles.

In the year to 31 March 2008 the acquired assets generated sales of c £6.5
million. As Corgi formed part of Corgi International Limited it did not report
profitability as a separate entity. However, performance in the year to 31 March
2008 was disrupted by a number of one-off items. Hornby will focus on managing
the brand for growth. Key existing marketing, sales and development personnel
will be retained, whilst currently outsourced logistics will be integrated into
the Hornby structure along with sales administration, finance and operations. It
plans to strengthen the product range and improve the marketing and distribution
support. The acquisition is expected to be earnings neutral in the current
financial year.

The Corgi product range is highly complementary to Hornby's existing hobby
brands, which include Hornby, Lima, Jouef and Rivarossi in model railways,
Scalextric slot car racing cars, Airfix models and Humbrol paints.

As part of the acquisition, Hornby is also acquiring Bassett-Lowke, an 'O' gauge
model railway brand. Bassett-Lowke operates at the top end of the model railway
market and will add another range of products that complements Hornby's existing
model railway portfolio.

Frank Martin, Chief Executive of Hornby commented,

' We are delighted to announce the acquisition of Corgi. It is a fantastic brand
and has a superb reputation worldwide. We intend to build on the brand's super
heritage and invest to build its premier position in the market. The strategic
fit with our existing businesses could not be better. We are confident that we
will grow the scale of the business rapidly and drive it forward.

' The team at Hornby has the expertise and a successful track record in managing
a portfolio of famous hobby sector brands that have flourished under our
stewardship. We have set in place a detailed integration plan to ensure that we
improve Corgi's performance rapidly. We will focus on product innovation,
improving the distribution network and driving sales growth both in the UK and
Internationally.

' This acquisition is an extension of the Group's strategy to build an
international hobby and collectibles business with a broad range of brands.
Looking to the future, we are extremely excited by the potential growth that
Corgi can deliver.'

                                      -ends-

Date: 1 May 2008

For further information contact:

Hornby Plc                               City Profile

Frank Martin, Chief Executive            Simon Courtenay

Andrew Morris, Finance Director          William Attwell

Tel: [phone]                        Tel: [phone]

Web: www.hornby.com or:

     www.scalextric.com



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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