HONG KONG--Corgi International Limited (Nasdaq: CRGI - News) has entered into a letter of intent to acquire the outstanding shares of Cards Inc. Limited and an agreement to merge with Master Replicas Inc. in a stock-for-stock merger transaction. The closings of the acquisitions are expected to occur in the fourth quarter of 2006, after receipt of shareholder approval and satisfaction of other closing conditions.

The company, which will retain the Corgi name, will produce a wide variety of product categories, and will feature collectible products from licenses, on a combined basis, for nine of the ten highest grossing film franchises of all time, including Batman, James Bond, Disney Classics, Harry Potter, Lord of the Rings, Pirates of the Caribbean, Star Trek, Star Wars, and Spiderman.

Cards Inc., headquartered in Watford, England, specializes in creating licensed collectibles, gifts and toys. Master Replicas Inc., with headquarters in Walnut Creek, California, develops and markets movie replicas and high-end pop culture collectibles.

For more information about the companies, please visit www.Corgi-International.com, www.MasterReplicas.com and www.CardsInc.com.

This press release does not constitute an offer to sell, or a solicitation of offers to buy, any Corgi securities. The securities to be issued by Corgi in connection with such acquisitions have not been registered under the United States Securities Act of 1933 and absent such registration or an applicable exemption, may not be offered or sold in the United States.

About Corgi International

Corgi International, based in Hong Kong, sells die-cast collectible products under its own brand. In the U.S., the company is known as Corgi USA. Corgi also produces high quality die-cast and plastic products for multi-national companies that market collectible or gift items worldwide. Corgi has a high-volume manufacturing operation in China and sales offices worldwide.

Of course it will take some time for all the smoke to clear, and to assess the true impact of this merger.  It would appear that at the very least things will stay the same for collectors.  Although it’s quite possible (and my hope) that this will open the doors to acquiring items that were harder to get because they weren't available in one country or another - this is particularly true of the Cards Inc items.