Bolingbrook, IL (March 30, 2004)-RC2 Corporation (NASDAQ: RCRC) announces the awarding of over $1.2 million in state funding that will help open a new distribution center in the Northern Stateline region. RC2 Corporation will open the 400,000 square foot center in Rochelle, IL strategically located next to Union Pacific's Global III Intermodal Facility, allowing the Company to significantly reduce its shipping costs and greatly improve its business efficiency. RC2's new distribution center will create a total of 42 new jobs and retain eight.

"We are excited to expand our operations to Rochelle and within the State of Illinois. The assistance of the local and state governments has created a win-win opportunity which allows for the development of a global intermodal logistics facility for our Company and many more companies who will likely follow us to Rochelle," says Curt Stoelting, Chief Executive Officer of RC2 Corporation.

The assistance package of grants and financing will come from the Illinois Department of Commerce and Economic-Opportunity (DCEO) as a part of Governor Bjagojevich's Opportunity Returns plan, the regional economic development strategy designed to spur growth and create jobs for the Rock River Valley region. Among the 30 specific action items included in that plan was a strategic initiative to provide marketing and logistical support to the Global III Intermodal Facility, an area that regional civic and business leaders deemed ripe for tremendous growth due to its capacity to expedite the operations of over 25 trains and 3,000 containers each day and serve as a critical interchange hub.

RC2 recently acquired toymaker Learning Curve International, Inc. for approximately $110 million. The merger was seen by both companies as a means of propelling them to a new level and also rewarding their investors. This recent acquisition of Learning Curve International has enabled the toy company to broaden its product line and expand its distribution channels, giving them the ability to tap into a number of new markets and pursue whole new levels of growth. The decision by RC2 Corporation to locate one of its distribution centers in close proximity to the intermodal facility will give them the additional capacity needed to grow in the future.

When asked about the benefits of state funding to RC2 Corporation, Governor Blagojevich said, "The new Global III Intermodal Facility in Rochelle is a state of the art terminal that has the potential to act as the linchpin of major economic growth in Northern Stateline Region and throughout Northern Illinois. By providing this targeted support, we took a key first step to realizing its vast potential. By helping RC2 Corporation relocate one of its distribution centers to the area, we will see the first tangible economic benefits in the form of job creation and business development. This is a great example of how state resources, partnered with business ingenuity, can act as a dynamic force of growth for the local economy."

Specifically, DCEO will make available up to $750,000 in Community Development Assistance Program funds in the form of a grant to the City of Rochelle to directly accommodate RC2 Corporation's business expansion; at least $487,000 through Economic Development for a Growing Economy corporate income tax credits over the next ten years, based on projected employment levels within the initial two years of the project; and $26,000 in Employer Training Investment Program job training funds that will help enhance the skills of its workforce.

About RC2 Corporation

RC2 (www.rc2corp.com) is a leading designer, producer and marketer of high-quality, innovative collectibles and toys targeted at adult collectors and children, as measured by sales and brand recognition. The Company's diverse product offerings include: agricultural, construction and outdoor sports vehicle replicas; automotive, high performance and racing vehicle replicas; traditional children's toys; sports trading cards, 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 Curve®, American Muscle™, AMT®, W. Britain®, Press Pass®, Eden®, Feltkids®, JoyRide® and JoyRide Studios®. The Company supports its brands and enhances the authenticity of its products by linking them with highly recognized licensed properties from John Deere, Harley-Davidson, HIT Entertainment, Lamaze, Case New Holland, Polaris, Honda, Caterpillar, Ford, GM, DaimlerChrysler, NASCAR, NHRA, Texaco, Universal Studios, Warner Brothers, DIC Entertainment, Discovery Channel and Microsoft. The Company's products are marketed through multiple channels of distribution, including 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 25,000 retail outlets located in North America, Europe, Australia and Asia Pacific.

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.

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