Hornby PLC


Hornby PLC
10 November 2006


Hornby Plc ('Hornby'), the international models and collectables group, has
announced that it has entered into contracts to acquire certain assets of
Humbrol Limited in Administration (Humbrol), the owners of the Airfix model kits
and Humbrol paints businesses. The acquisition encompasses the Airfix model kit
business, the Humbrol paints and model accessories business, the Young Scientist
business and their associated assets. These brands are sold in a range of
territories worldwide and are highly complementary to Hornby's existing brands.
In the year to 31 December 2005 the acquired brands achieved sales of £6.5

Hornby has exchanged contracts with the administrators and will pay total
consideration of £2.6 million in cash on completion for the assets acquired from
the Administrators Grant Thornton.

Hornby intends to re-structure the business, moving all the distribution, sales
and marketing operations to its own site in Kent. It will re-locate the
manufacturing and assembly processes to third parties. This will allow Hornby to
focus on re-invigorating the marketing and distribution and driving sales

Airfix and Humbrol remain strong brands and enjoy an excellent position in the
market place. Demand has remained buoyant in recent years. Humbrol products are
used by modellers across a large range of applications worldwide. Hornby
management believe that they can re-invigorate the Airfix business by focussing
both on traditional products for the model enthusiast and also by investing in
new products aimed at the younger market.

The market for Humbrol's paint and model accessories products is very broad.
Humbrol sells a successful range of products that consists of enamel paints,
aerosols and adhesives in a large number of markets including Europe and the US.

Humbrol's products are used in a multitude of applications, not just model
making. This will broaden Hornby's product offering which currently ranges from
model railways, slot car racing sets, track extensions, buildings and landscape

The consideration will be financed out of Hornby's existing bank resources. The
transaction is expected to be earnings neutral in the current financial year and
significantly enhancing thereafter.

Frank Martin, Chief Executive of Hornby commented,

' We are delighted to have acquired Airfix and Humbrol, both of which are iconic
brands in the hobby market. The strategic fit with Hornby is excellent. Hornby
has similar distribution channels to Humbrol/Airfix, and we therefore plan to
integrate the business into our existing structure, which gives the business the
right platform and a more streamlined base from which to grow.

' We have taken steps to re-align the cost base of the manufacturing and
assembly process, to create a solid base from which this business can thrive. We
can focus on product innovation, improving the marketing and driving sales

' Hornby has the expertise and track record of re-invigorating hobby brands. A
detailed integration plan has already been put in place, to ensure that we
improve the profit performance rapidly.

' This acquisition consolidates the Group's strategy to build an international
hobby business with a broad range of brands, allied to a tightly controlled
cost-base. We are making good progress across a range of markets and

Keith Hinds, joint Administrator at Grant Thornton said:

' I am delighted to be able to announce this successful sale. This transaction
provides the best opportunity to preserve and develop what is an iconic brand.'


Note to editors:

Humbrol Limited went into Administration in August 2006 following the problems
experienced by its major manufacturing supplier Heller SA in France, which went
into administration in July 2006.

Date: 10 November 2006
For further information contact:

Hornby Plc                                               cityPROFILE
Frank Martin, Chief Executive                            Simon Courtenay
John Stansfield, Finance Director                        William Attwell
Tel: 01843-233500                                        Tel: 020-7448-3244
On 10 November - Tel: 020-7448-3244
Web: www.hornby.com or: www.scalextric.com

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