Contact: Cara Lynn Orchard

(586) 949-4100 x 1572

January 3, 2003

For Immediate Release

(Chesterfield, Mich.,) - Lionel today announced it will be selling two buildings and looking for a new location in an effort to consolidate its headquarters and distribution center facilities. The company will remain in the immediate metropolitan Detroit area to continue its day-to-day business.

"We have grown away from the type of facilities we currently have," said Lionel President and CEO Bill Bracy. "Lionel needs a building more conducive to our current business model."

At present, Lionel owns the 26750 Twenty-Three Mile Road building (48,000 sq. feet) that serves as world headquarters and the 50625 Richard W. Boulevard (150,000 sq. feet) that serves as a distribution center for Lionel trains and accessories. Both of the buildings are located in Chesterfield, Mich.

A new location has not been determined for the new home of Lionel. "We want to sell the buildings first, then we will decide where to move," said Bracy. "We would like a building where we can expand the Lionel Visitor’s Center and add new facilities."

Lionel is actively looking for sites in close proximity to its current location. "Retaining our current employees and staying in Michigan are very important to us," said Bracy. "We will make sure that our new site is close enough so that current employees can still make the commute easily."

Signature Associates Oncor International of Southfield, Mich., will handle the move. For more information please contact Peter Wallace (248) 948-9000.

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