Lionel Quality Electric Trains
Lionel Trains Wins Approval Of Extended Exclusivity To File Plan Of Reorganization


Mark Erickson          

(586) 949-4100 x 1467

Lionel L.L.C.


Hollis Rafkin-Sax, 212-850-5789, or

Kristin Celauro, 212-850-5652,

Financial Dynamics



Defeats MTH in their Effort to Gain Access to Additional Company Documents

Chesterfield, Michigan - March 23, 2005 -- Lionel L.L.C., the nation’s number one model train maker, today announced that the Bankruptcy Court overseeing its reorganization granted the Company’s request to extend its exclusive period for filing a plan of reorganization through January 2006.  During this period no other creditor may file a competing plan.  At the same hearing, the court also denied a separate motion by Mike’s Train House (“MTH”) that would have granted MTH greater access to Lionel’s historical operating documents and information.

“We’re extremely pleased and gratified to have received the Court’s support in these two critical matters,” said Jerry Calabrese, Lionel’s CEO.  “The judge’s ruling guarantees that Lionel will continue doing business exactly as it has done in the past, by making the products our fans want, and selling them at prices people can afford.  We now have all the time we need to complete our product development and sales initiatives that made 2004 our best year in recent memory, and we expect even better results this year.

“As we approach the one year anniversary of the MTH verdict, Lionel is truly resurgent on all fronts, and getting stronger every day.  In addition to the very real gains we’ve recently enjoyed in our business, the court’s vote of confidence ensures that we will also continue and complete our efforts to appeal and overturn what we truly believe was an unjust verdict in favor of MTH,” Calabrese concluded.

In January 2005, Lionel received approval of its DIP financing and also filed its appeal of the MTH verdict.

Lionel L.L.C. is one of the world’s leading marketers of model trains and accessories. Established in 1900, the Lionel name is the most widely recognized brand in the toy train industry and one of the most recognized brands in America.  Lionel has been at the center of every major innovation in toy train manufacturing and marketing since its inception.

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Phone 586-949-4100 Fax 586-949-1013 WWW.LIONEL.COM