The event will combine the race sponsorship with TV, print, Internet, and trackside promotional tie-ins for Racing Champions and the Sear's Craftsman brand. In addition, Racing Champions will produce a variety of die-cast collectibles for in-store tie-ins, starting with a 1:64-scale die-cast replica of the Craftsman Funny Car driven by Dale Creasy, Jr.

Featuring the unique 75th Anniversary paint scheme that Creasy has been running at NHRA events this summer, the model will be produced in a limited edition. While supplies last, it will be given away to Sears customers during the Sears National Hardware Sale, September 29-October 14, with any $75 purchase of Craftsman tools.

"This agreement is an excellent example of the way we can leverage our existing relationships to develop unique promotional ideas," said Peter Henseler, President of Racing Champions Ertl. "We've worked with the NHRA for years, and we're delighted to bring them together with another high-visibility American icon-Craftsman tools-at this event. It's a good example of the way we can pull together a complete turn-key promotional concept involving major partners to everyone's benefit. We're proud to team up with Craftsman to celebrate their anniversary by co-sponsoring the NHRA Nationals event."

Racing Champions Ertl (www.rcertl.com) is a leading producer and marketer of innovative collectibles and toys targeted at males of all ages. The Company's diverse product offerings include scaled die-cast replicas of John Deere agricultural equipment and NASCAR stock cars, other licensed vehicle replicas, pre-teen toys, sports trading cards, racing apparel and souvenirs, and collectible figures. These products are sold under the Company's market-focused brand names, including Racing Champions®, Ertl®, Ertl Collectibles®, American Muscle(TM), AMT®, W. Britain®, Press Pass®, and JoyRide Studios(TM). The Company reinforces its brands and enhances the authenticity of its products by linking them with highly recognized licensed properties including NASCAR, NHRA, John Deere, Harley- Davidson, Case IH, Polaris, Honda, Caterpillar, Ford, GM, Chrysler, Texaco, Warner Brothers, Gullane Entertainment, Nintendo, Sega, and Electronic Arts. The Company's products are marketed through multiple channels of distribution, including mass retailers and specialty and hobby wholesalers and retailers, OEM dealers, and to corporate accounts for promotional purposes. The Company sells through more than 20,000 retail outlets located in North America, Europe, and Asia Pacific.

According to a 2001 EquiTrend survey, Craftsman is rated the number-one brand in the nation for overall quality. Sears sells more than 1,800 Craftsman hand tools, all made in America and guaranteed forever. Sears offers Craftsman tools, merchandise, and related services nationwide through its full-line stores, Sears Hardware, Sears dealer stores, and Orchard Supply Hardware stores, as well as through specialty catalogs and online at www.sears.com.

Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will" and "would." Such forward- looking statements are inherently subject to known and unknown risks and uncertainties. Such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission. The Company's actual results and future developments could differ materially from the results or developments expressed in, or implied by, these forward-looking statements. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.