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--COMPANY PRESS RELEASE--


RACING CHAMPIONS INTRODUCES NEW NASCAR COLLECTIBLES,
TAKES THE DETAIL UP ANOTHER NOTCH


Bolingbrook, IL (June 16, 2003)-Revving up the action and introducing an entirely new line of NASCAR die-cast collectibles, Racing Champions-a brand of RC2 (NASDAQ: RCRC)-hits the ground running with four new product introductions that will be in stores in August.

"This brand-new NASCAR Ultra Series of 1:64-scale die-cast cars is more detailed than anything we've done before," said Dell Torgerson, Managing Director for RC2 Corporation. "As the premier marketer of authentically detailed NASCAR replicas and toys, we're noted for the exceptional authenticity of our die-cast products, but the Ultra Series raises the bar to a new level."

Four new vehicles-Ford, Dodge, Pontiac, and Chevy-will be included in the initial series offering, all of them featuring die-cast bodies and chassis, rubber tires, authentic decoration, and detailed interiors. The Ultra Series will also continue the Chase the Race program of silver chase cars, car covers, and race-used memorabilia which are randomly inserted into car assortments. Suggested retail price is $3.99.

RC2 (www.rc2corp.com) is a leading producer and marketer of high quality collectibles, toys and hobby products targeted at adult collectors, parents and children. The company's diverse product offerings include: traditional children's toys; agricultural, construction and outdoor sports vehicle replicas; automotive, high performance and racing vehicle replicas; 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®, Learning CurveSM, American Muscle™, AMT®, W. Britain®, Press Pass®, Eden®, Feltkids® and JoyRide Studios™. RC2 builds consumer loyalty by fulfilling the passions of targeted consumers with its branded products that encourage repeat purchases and are fun to own and use. The Company's goal is to achieve leadership in targeted markets worldwide by acting on significant consumer trends, continuously applying innovation and developing consumer preferred brands and products distributed through multiple channels. These channels include chain retailers, specialty and hobby wholesalers and retailers, OEM dealers, corporate accounts for promotional purposes and direct to consumers. The Company sells through more than 20,000 retail outlets located primarily in North America, Europe, and Asia Pacific.


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