Approval of Lima Acquisition

Hornby PLC
05 October 2004




                      HORNBY ACQUISITION OF ITALIAN MODEL
                              GROUP LIMA APPROVED

Hornby Plc ('Hornby'), the model and collectables group, is pleased to announce
that the Court of Brescia in Italy has signed a decree which allows the
Liquidators of Lima S.p.a. ('Lima') to accept Hornby's offer of €8 million to
acquire certain assets of Lima. Hornby is now conducting detailed due diligence
on Lima's assets. The Hornby Board is confident that the acquisition will be
completed by the end of the calendar year.

Lima is one of the best-known model railway companies in Europe.

However, given the high cost overhead associated with its European based
manufacturing operations, the company has suffered recently from poor cash flow
and was forced into liquidation in 2003.

The Hornby Board is confident that it has the skills and experience to
re-invigorate Lima's brands. This will be achieved by reducing production costs
by outsourcing production to third party specialists in China and concentrating
on improving sales and distribution channels to ensure a recovery in sales in
Lima's key European markets. Hornby intends to maintain Lima's current product
lines. The bulk of the company's assets are detailed product moulds; initially
these will be moved to Hornby's site in Margate before dispatch to China. Hornby
has implemented this outsourcing strategy successfully with its own Hornby and
Scalextric brands.

The acquisition represents a major opportunity for Hornby to continue its growth
in key European markets. Lima has a strong range of brands as follows:

Lima/Rivarossi - brand leaders in Italy
Jouef - brand leader in France
Arnold - 'N' guage products - predominantly German subject matter
Pocher - high-end die cast collectable kits

In addition to the European opportunity, Rivarossi is recognised as a premium
brand in the USA.

The Chief Executive of Hornby Plc, Frank Martin, commented:

' We are delighted that the Italian Court has recognised the merits of our
offer. Now, subject to our due diligence, we hope to complete the acquisition
before the end of the year. We are excited by the potential for the Lima brands,
which alongside our Spanish operation Electrotren, will form the platform for
our expansion into key European markets. Over the long-term we are confident
that this will also increase our rate of growth in the USA.'
                                     -ends-

Date: 5 October 2004

For further information contact:

Hornby Plc                                        City Profile Group

Frank Martin, Chief Executive                     Simon Courtenay
John Stansfield, Finance Director                 020-7448-3244
01843-233500
Web: www.hornby.com or:
www.scalextric.com


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