Walthers Addresses Concerns of N Scale Modelers following Life-Like Acquisition July 20, 2005 -- FOR IMMEDIATE RELEASE Walthers Addresses Concerns of N Scale Modelers following Life-Like Acquisition Milwaukee, Wis. -- With the announcement on Friday July 15, 2005 that Walthers has acquired the toy and hobby divisions of Life-Like, many modelers have expressed concerns regarding the future of the N Scale product line. Walthers has NO intentions of cutting back or eliminating either the Walthers or the Life-Like N Scale lines! Walthers has known for a long time that N Scalers are feeling left out of the company's new product releases. But knowing that more had to be done was really just the beginning -- determining how to do more, and do it better, was the tough question to answer. Acquiring Life-Like is a good solution that will allow the company to better meet the needs of the N Scale market. And while the numbers of new items coming out in HO and N may never match, Walthers feels this a huge step towards closing that gap. Modelers are just beginning to see Walthers hard work pay off with the purchase of the Life-Like toy and hobby lines. Comparing the N Scale product lines shows that the combination makes both stronger. And best of all, the Life-Like team has a very good understanding of the N Scale market that will benefit everyone. Now the wheels are in motion in Milwaukee and Baltimore, and there is a lot of work ahead. Walthers earlier press releases covered some of the company's long-term goals, but here is what is planned for the immediate future: Walthers New Products Guide showcases 20 totally-new releases in N Scale including the complete series of Cornerstone ModularsTM parts, a Built-Up 130' Turntable and a new collection of Cornerstone Series® kits for an engine service facility, which are all on track for delivery during 2005-2006. While it's too early to release specifics, Life-Like has been hard at work on several new N Scale products, including some much-requested locos, all slated for delivery during 2005-2006. And one more important thing, in addition to these major projects, the Walthers team is already planning for 2006-2007 and beyond -- less than one week since the acquisition became final! Walthers would like to take this opportunity to thank all of those who have taken the time to express both congratulations and concerns, either directly to us or through various Internet forums, about our recent acquisition of Life-Like and their line of N Scale products. We appreciate your feedback and suggestions -- please keep them coming. And rest assured Walthers commitment to N scale has never been stronger! For more information, visit Walthers on the Internet at walthers.com. Call 414-527-0770 or write Walthers, PO Box 3039, Milwaukee, WI 53201-3039.