Trading Statement

Hornby PLC
12 March 2001


                               HORNBY ANNOUNCES
                               ENCOURAGING SALES

Hornby PLC ('Hornby') announces encouraging sales of its products in the  pre-
Christmas period and projects improved trading in the financial year  to  31st
March 2001.

Sales  of the Company's Hornby railways and Scalextric slot car racing systems
in  the  financial year ending 31st March 2001 are expected  to  exceed  prior
year. Sales growth has been achieved in both UK and International markets.

The  Company has completed the task of moving its production to China  -  this
has  enabled  the Company to reduce stocks of components held at  Margate  and
thus  reduce working capital. It has also led to a significant improvement  in
product  quality  and  levels of detail achieved in the  products  themselves.
These factors have led to an improvement in the profitability achieved.

Overheads, on increased sales, are expected to be held in line with the  prior
year, in both cases before exceptional restructuring costs.

The  Company is also forecasting a significantly improved cash balance at 31st
March  2001. In line with the indication given to shareholders at the time  of
the  announcement of the half-year results last November, the Board intends to
return funds to shareholders.

To  this  end, and subject to market conditions, it is the Company's intention
at an appropriate time to instruct its Stockbroker, Beeson Gregory to offer to
purchase  shares  in the market up to a level of 15% of the  Company's  issued
ordinary shares within the authority approved by shareholders at the last AGM.

Following  the  share  buyback, Mr M Hughes' beneficial  shareholding  in  the
Company may rise from its present level of 28.69% of the current issued  share
capital to 33.76%.  The Board is of the view that Mr. Hughes is not acting  in
concert  with any of the Company's Directors and that consequently, under  the
takeover  code,  there will be no obligation for Mr Hughes to make  a  general
offer to all shareholders.

Chairman Neil Johnson commented:

'  I  am delighted to release this favourable trading statement. Christmas has
been  an  important  period  for us. The focus on improving  the  quality  and
detailing of our products has been especially well received by customers.  The
much-improved performance reflects the benefits of the restructuring programme
that the Company has undergone over recent years.

' Looking to the future, the Company's prospects look bright. Feedback from UK
retailers and International distributors at the recent Toy Fairs has confirmed
that our product ranges - both Hornby railways and Scalextric slot car systems
have  enjoyed  a considerable revival in sales. Our new product  introductions
for  2001 were extremely well received. In particular the development  of  the
Hornby  Virtual  Railway system and the Scalextric PC -  interactive  software
demonstrate  our ability to marry the appeal of our 'real time'  hobbies  with
the latest technology.'


Date: March 12th 2001

For further information contact:

Neil Johnson, Chairman                           Simon Courtenay
Frank Martin, Chief Executive                    Ed Senior
Hornby PLC                                       City Profile
01843-233500                                     020-7726-8588
Web: www.hornby.com                              e-mail: [e-mail]