It's over! MR and Star Wars are no more!!!

[Sir Tristram]

Those who care....Read it and weep...

Hi Everyone,

I wanted to post this press release here because I wanted our loyal customers to here it from us first.

Corgi International Limited Provides Notice Withdrawing Offer to Secure a New Licensing Agreement with Lucasfilm Ltd.

HONG KONG--Corgi International Limited (Nasdaq GM:CRGI) today announced that it has notified Lucasfilm Ltd. that the company has withdrawn its offer to secure a new license agreement for Star Wars products starting January 1, 2008. The company's existing license with Lucasfilm Ltd. for Star Wars products expires on December 31, 2007. Lucasfilm Ltd. had previously notified the company that it was not willing to provide a new license on the terms proposed by the company. Corgi believes that it is not in the best interest of its shareholders to accept a new license on the terms proposed by Lucasfilm Ltd.

While Corgi does not expect to secure a new license for Star Wars products from Lucasfilm Ltd. starting January 1, 2008, the company continues to expect to generate approximately 20% of total net sales for the fiscal year ending March 31, 2008 from sales of products from the licensed properties of Lucasfilm Ltd. As such, the company is maintaining the guidance issued on February 20, 2007 regarding the fiscal year ending March 31, 2008.

CEO Michael Cookson commented, "We have enjoyed our six year relationship with Lucasfilm Ltd. and the work that we have done with Lucasfilm Ltd. to help grow and expand the Star Wars franchise. Jointly, we have developed some of the highest quality and coolest products for the core Star Wars fans. At the same time, Corgi is committed to building a healthy, profitable company. Unfortunately, the company and Lucasfilm Ltd. were unable to agree on terms for securing a new license starting in January 1, 2008. We look forward to continuing to develop growth opportunities at Corgi, thanks to our product development expertise, our strong distribution and our portfolio of license and non license business.”

About Corgi International

Corgi International develops and markets innovative, high-quality licensed and unlicensed pop culture collectibles, gifts and toys ranging from high-end movie and television prop replicas to lower price-point gifts and toys. The company holds licenses for pop culture collectibles, gifts and toys for many of the highest grossing film franchises of all time including Batman, Disney Classics, Harry Potter, James Bond, Pirates of the Caribbean, Star Trek, Spiderman 3, and Star Wars. The company is headquartered in Hong Kong, with offices in Walnut Creek, CA, Chicago, IL, and the United Kingdom.

Caution Regarding Forward-Looking Statements

Certain statements in this release are forward-looking, including statements concerning anticipated revenues and margins. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, without limitation, changes in market demand for Corgi International products, changes in economic conditions, dependence on certain customers and licensing partners, and other risks described in the company's annual report on Form 20-F for the fiscal year ended March 31, 2006 and the risk factors described in the Company's Form F-3 filed with the Securities and Exchange Commission on April 19, 2007. The company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances

 

[jason2885]

I had one day hoped to buy some MR items, hopefully in a few years I will still be able to get the studio scale ships close to retail. I really want the Falcon AT-AT Snowspeeder, Ywing and hopefully they will still release the X-Wing and TIE Fighter.

 

[Kenbenobi]

Surely, they will come to a new agreement with different terms. Do you really think Lucas will just let the agreement end? I'd be surprised. Corgi has too many products. Not only MR, but Cards, Inc. which makes pretty much EVERYTHING Star Wars in the UK...

 

[The Mike]

This is shocking to say the least, especially with so many things still on the planning boards.....

 

[nash]

Mike any word on if MR will still produce whatever they had on their 2007 product plan? IE. Blackhole trooper helmet... ?

 

[EVILFACE]

Well haven't they done everything by now? Mutiple variations even?

 

[Agent0028]

Darn, I kept hoping one day to be able to afford a 1:1 lightsaber. And I was really wanting a Dooku FX lightsaber. I hope Ken is right and they come to an agreement.

 

[MaulFan]

Sad news, I was too young and low-budgeted to get the full scale Luke Jedi saber replica when it came out, but word had it they were going to release a version 2 of it, but with this news, you almost wonder if they're going to put an end to all product and just worry about selling off what's already going. It's tragic that Corgi took over, they suck balls.

 

[Nitro]

I was devastated when I read the news on their site.

I bought my first product from MR last year which was a Force FX saber. I liked the fact that although buying a full scale lightsaber was out of the question, the company went above and beyond creating more affordable .45 scale versions of their full scale counterparts at a price that was actually reasonable. They were so much fun to collect and display.

Thought about picking up some higher end items this year, but with the news I don't know whether or not the products will be liquidated at prices well below retail like other licenses that ended agreements with Lucasfilm (COde 3 anyone??)

Anyways, today was great. Right now, I'm feeling a little sad that something that I enjoy and collect in my spare time is being taken away so soon. I feel like a good friend of mine is moving away for good and not coming back.

 

[dekadentdave]

What about all of the Indiana Jones props that were planned that they showed? Staff of Ra Headpiece and Fertility Idol? I thought next year would be the year of Indy for MR.

 

[IrishJedi]

Good news for SSC, actually. If they have any cajones they're licking their chops right now... because the golden egg has just been dropped and is right there at their feet for the taking.

:maul

 

[Amanaman]

Corgi is the one busting balls. LFL likes props and they are looking to replace the void. Sideshow needs to step up and do its thing! :chew :chew :chew

 

[dekadentdave]

Good news for SSC, actually. If they have any cajones they're licking their chops right now... because the golden egg has just been dropped and is right there at their feet for the taking.

:maul

Sideshow could definitely pick up the ball but there plate is pretty full which is why so many licenses have been stalled. I have been getting the impression for the last couple of years that MR was not doing well financially hence their merger with Corgi. I think they couldn't pony up to renew the license agreement with Luca$$film.

 

[The Josh]

I heard rumors of this happening a while back that MR and SW would split. With the way they bumbled things over the last few months I can't say I'm too suprised.

 

[nash]

oh well Ive got basically all the sabers and blasters that I would want.

I was looking forward to clone commander helmets more than anything.

If this allows MR to pump out a lot of Marvel stuff then that is good news to my ears.

 

[mfoga]

This Sucks, well not for my bank account but for me. Luckly I have pretty much most of what I want.

 

[dekadentdave]

I wonder if this will have any effect on the Boba Fett signature edition helmet. That could be the very last $tar War$ item they release. I was hoping we'd see a Jango helmet next year but guess not!

 

[MaulFan]

Perhaps if Sideshow took on the types of products MR was producing, the revenue could support larger staff, facilities and resources to compensate and handle the business and also allow all of their lines to speed along and flourish.

 

[dekadentdave]

They can't even streamline the process as it is now. Taking on props and replicas will only compound their already overtaxed resources.

 

[nash]

What a coincidence.... Just bought the last MR SW piece that I wanted. Found a MR Solo Elite for $405 shipped w/ no plaque.

Bought a Vader ROTJ complete for $225 shipped 2 days ago.

Im done with MR SW :chew