According to Peter Henseler, President of Racing Champions Ertl, the new line reflects the Company's heritage of developing toys and scale-model collectibles that are accurate reflections of American icons. "Harley- Davidson is a name that's known and respected around the world," he said, "and we're honored to be able to bring our high quality products to market just in time for Harley-Davidson's 100th anniversary celebration in 2003. These products -- the first in what we hope will be a long line of Harley-Davidson introductions -- enhance the depth and breadth of our own product line, and we expect them to expand our reach to an entirely new audience and collector base, from children to adults."

Racing Champions Ertl is introducing Harley-Davidson die-cast collectible motorcycles as a natural addition to Racing Champions Ertl's well-established collectible die-cast product lines. The Harley-Davidson Die-Cast Motorcycle Collection Series 1 is being offered in both 1:18- and 1:10-scale, and the Harley-Davidson NHRA® Drag Bike is offered in 1:9-scale.

The Company is also introducing, under the Little Dreams(TM) brand, vehicles that feature sound and movement and capture the excitement, adventure, and fun that Harley-Davidson represents for youngsters. Those products include Five inch Little Dreams Rumble Riders plastic motorcycles, Ten inch Little Dreams Push 'n Roll plastic motorcycles, Hometown Roadway(TM) wooden motorcycles and play sets, Eight inch Little Dreams Radio Control Motorcycles and Thirty-six inch Harley-Davidson Steel Wagons with Wooden Stakes.

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 LLC, Polaris, Honda, Caterpillar, Ford, GM, Chrysler, Texaco, Universal Studios, 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.

Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and a complete line of motorcycle parts, accessories and general merchandise.

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.