Corgi International Limited has entered into a letter of intent to acquire the outstanding shares of Cards Inc. Limited and an agreement to merge with Master Replicas 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 will retain the Corgi name and produce a wide variety of licensed products in a number of different categories.  Cards Inc. of Watford, England began as a distributor of trading cards, and then began producing licensed cards before expanding into production of a wide variety of licensed goods (see 'NECA Gets Harry Potter License').  Master Replicas of Walnut Creek, California develops and markets movie replicas and high-end pop culture collectibles (see 'Master Replicas Gets BSG License').  The Hong Kong-based Corgi is a leading producer of die-cast collectibles based on an array of top licenses.

The new company will be a force to be reckoned with in the world of licensing.  Together the three companies that are merging have licenses for nine out of the top ten highest grossing movie properties of all time including: Batman, James Bond, Spider-Man, Disney Classics, Harry Potter, Lord of the Rings, Pirates of the Caribbean, Star Trek and Star Wars.